lukasz@gtakademia.pl

A comprehensive draft of changes to the tax ordinance

The Ministry of Finance is working on the amendment of the tax ordinance. The proposed changes are extensive, and some of them are revolutionary and long-awaited, although the proposed solutions are still far from being ideal. Taxpayers may welcome the idea that the initiation of proceedings under the criminal fiscal code would no longer suspend the limitation period for a tax liability, and that tax liabilities secured by a mortgage or a lien could be statute-barred. However, some unfavorable changes are also planned, e.g. extending the possibilities of the tax office in the scope of blocking accounts.

Interest rates and interest. A system of interconnected vessels

The Monetary Policy Council has once again raised NBP interest rates. Although economists had expected a larger increase, this does not change the fact that interest rates have already been raised 10 times since October 2021, resulting in an increase not only in mortgage payments, but also in interest rates that are important from the perspective of taxpayers – tax, statutory and maximum interest, which translates into a higher – compared to last year already twice – value of interest for tax liabilities that have not been paid within the statutory deadlines.

Categories Tax

Waiting for judgements concerning tax schemes

In the last two years, the subject of tax schemes, which was so much commented upon immediately after the implementation of the amendments to the tax ordinance that concerned them, has lost a lot of its dynamics. However, this may soon change, due to the incompatibility of the provisions on tax scheme reporting with the constitution, which was ruled by the Constitutional Tribunal in Belgium. The French also signal similar doubts. Reservations, concerning inter alia the disclosure of professional secrecy when reporting MDRs, were also reported to the Polish Constitutional Tribunal.

Categories Tax

CJEU: the contract (exceptionally) can be an invoice

A contract after the conclusion of which the parties have not issued an invoice may be regarded as an invoice if it contains all the information necessary for the tax authorities of a Member State to establish whether the substantive conditions for the right to deduct VAT are satisfied in a given case. This follows from the judgment of the CJEU in case C-235/21 Raiffeisen Leasing.

Categories Tax

Use of private vehicles for business purposes. New mileage rates.

Through an amendment to the regulation for which the Ministry of Infrastructure is responsible, the mileage amount to which employees who use private vehicles for business purposes are entitled will change. Consequently, the monthly lump sum limits for such employees will also be updated. For most drivers, however, the amounts proposed in the draft will not compensate for rising operating costs. The regulation also does not regulate the reimbursement of employees for the use of, among other things, private electric cars.

Categories Tax

Expansion will bring tax relief only for manufacturers

The tax confusion created by the Polish Deal was a huge burden on corporate HR departments. Accounting – if functioning separately – at the turn of the year measured itself against Estonian CIT, hidden dividends, minimum tax or withholding tax. As a result, there is relatively little interest in new tax breaks, although several were introduced as part of the reform. One of them is the expansion tax credit, which applies to typical enough expenses that any manufacturing company should be interested in it.

Categories Law

New developer act – summary of selected changes

Most of the provisions of the so-called developer act entered into force as of July 1, 2022. The main objective of the new regulations is to increase the protection of buyers of residential premises or houses from the primary market. The Act imposes on developers the obligation to provide the buyer with a wider range of information about the real property, as well as the presumption of defects recognition in the premises or a house. The new regulations also impose on developers the obligation to pay contributions to a special guarantee fund.

6 months with a test purchase. What should sellers keep in mind?

The institution of a test purchase has been in operation for more than half a year. According to data from the Ministry of Finance, one in four acquisitions ends with a fine imposed on the seller. However, given current economic indicators, including inflation, it can be expected that the number of fines imposed will increase. This makes it all the more worthwhile to know how a test purchase proceeds, as well as what the rights and obligations are – of both the inspectors and the inspected.

Categories Law

Minimum income tax only from 2023 (and under new rules)

The possible obligation to pay the minimum tax in 2022 will be abolished. In turn, starting next year, its construction will be modified quite significantly. These are the most important changes envisaged by the draft amendment to the Polish Order in the area of CIT. The level of profitability ratio from operations, below which companies will be subject to the tax, is to be raised. There will also be an alternative, simplified method of determining the tax base.

Categories Tax

Polish Deal 2.0 at CIT. We know the assumptions

The Finance Ministry has been announcing for many weeks the publication of a draft law, an amendment to the regulations introduced under the Polish Deal (which today can already be referred to as the Polish Deal 1.0). The bill itself is not yet here, but the Finance Ministry has published the assumptions for the changes. They are numerous, and some of them – very significant.

Categories Tax