Source Deloitte
Unofficial translation
On July 26, 2021, details of the planned changes to the tax regulations, which are to enter into force as early as January 1, 2022, were presented.
During the conference of the Minister of Finance, the key assumptions of the planned changes and the main goals of individual initiatives were presented, i.e.
- The first goal is to ensure the “tax fair play” of the tax system in Poland – this slogan covers initiatives such as increasing the tax-free amount, changes in the health insurance contribution, increasing the 2nd threshold of progression and changes in simplified forms of taxation, i.e. in the lump sum on revenues recorded and tax card;
- The second goal is to ensure a “tax restart of the Polish economy” – that is, to launch a package of reliefs and incentives that have already been presented and consulted in recent weeks by the Ministry of Finance;
- The third goal is to ensure “equal opportunities for business” – this slogan is a set of changes in tax regulations aimed at tightening the tax system.
In addition, on July 26, 2021, information was published in the Public Information Bulletin of the Chancellery of the Prime Minister summarizing all planned changes in tax and tax-related regulations, which are currently being developed under the so-called New Deal. Work on the preparation of changes carried out by the Ministry of Finance, Funds and Regional Policy.
As stated in the list of legislative and program works of the Council of Ministers, it is planned that the changes will be adopted by the Government in the third quarter of 2021.
The bills were submitted, published on the website of the Government Legislation Center, and submitted for public consultation.
Based on previous announcements, it was known that the scope of the expected changes to the Personal Income Tax Act, the Corporate Income Tax Act and some other acts will be extensive. Nevertheless, we know from the current announcement that new issues appeared on the list of planned changes, which had not been announced in greater detail so far.
As regards the act on tax on goods and services (hereinafter: the VAT act), changes to the regulations will focus on the following areas:
a) for VAT groups
Pursuant to the regulations currently in force in the Polish legal system, taxpayers related financially, economically and organizationally are accounted for separately. Activities performed within related entities are documented with VAT invoices, and each of them separately submits the JPK_VAT file, which includes the VAT declaration and records. Despite the existence of a tax group, the concept of group settlements does not function at all in terms of the corporate income tax. It is connected with the tedious necessity of invoicing intra-group transactions taking into account the regulations on related entities, which additionally makes it difficult to conduct business. The draft in question introduces in the Act of March 11, 2004 on tax on goods and services, the possibility of joint accounting by several taxpayers under the so-called VAT groups.
(b) for options for taxing financial services
The draft provides for changes in the form of the option of taxing financial services.
c) in the field of popularizing non-cash payments in Poland:
• introduction of a quick VAT refund for non-cash taxpayers – the assumption of the proposed change is to popularize non-cash transactions in Poland by creating a tax incentive addressed to the “cashless taxpayer” accepting the vast majority of non-cash payments.
• temporary limitation of some VAT preferences for taxpayers who will not comply with the introduced obligation to be ready to accept non-cash payments.
d) regarding binding rate information (WIS)
In connection with the changes in the Tax Ordinance concerning the introduction of a new institution of the investment agreement (see point VI below), which will also include, inter alia, issues that are the subject of WIS (determination of the classification and VAT rate for goods / services subject to certain VAT-taxable transactions), it is necessary to adjust the WIS regulations in this respect. The purpose of the changes is to introduce specific conflict of laws rules between these institutions so that the same entity cannot apply for interpretations (indication of the classification of goods / services and the VAT rate) in the same scope, in two different forms, at the same time, and the competent authority issuing WIS (Director of the National Tax Information) did not issue any decisions in the case covered by the investment agreement already in force.
Source Deloitte
