WTS in Poland

An overview on new transfer pricing regulations.

Tax exemption for young professionals and new rules, if tax still has to be paid.

We would like to summarise two important changes as of 2020. I.e. the implementation of new SAF-T and regulations regarding the white list of taxpayers.

A digital tax has been discussed in Poland, but never fully presented or implemented.

The act on the resolution of double taxation disputes and the execution of advance pricing arrangements is approved

To avoid penalties, every taxable person who sells or purchases goods/services subject to mandatory split payment should be well prepared

22 August 2019 saw the publication of a bill designed to amend certain Polish laws for several purposes

A uniform register of taxable persons became operational as the enabling law entered into force on 1 September 2019

Amending act introduces a body of new regulations into the Tax Code to govern so-called individual tax accounts for persons liable to tax and for withholding/remitting agents

The Central Register of Beneficial Owners will become operational as of 13 October 2019. 

The Polish government has published a draft law to amend the VAT Act to implement Council Directive (EU) 2018/1910 of 4 December 2018

The document was developed in reliance on proceedings of the Transfer Pricing Forum in which WTS&SAJA took an active part

Polish legislation extends the obligations also for domestic tax arrangements

Mandatory Disclosure Rules (MDR) for domestic VAT arrangements 

The current reverse charge mechanism in force for specific goods and services will be replaced

Favourable court decisions on the application of the limit under Article 15c of the CIT Act to operating leases

Significant changes in withholding tax are scheduled for 2019 in Poland

A radical turnaround made by tax authorities in their treatment of the tax deductibility of what is called indirect costs

The new draft provides two commencement dates as of which the combined VAT filings will be replaced with one single JPK file

The Finance Ministry has published proposals for two new regulations (one for CIT and the other for PIT purposes) in the matter of countries and territories applying harmful tax competition

Overview of projected tax changes

Overview of VAT rules that will apply as of 30 March 2019 if the UK does leave the EU without a deal

On 31 December 2018, the Minister of Finance’s Regulation on exclusion or restriction of application of Article 26(2e) of the Corporate Income Tax Act was announced in the Journal of Laws

The Finance Ministry has drafted a new law to fundamentally change the VAT classification of goods and services

Overview of the most important changes

As of 1 January 2019  the insureds and the withholding agents would feel a substantial increase in the cost of contributions

Certain practicalities related to VAT refunds into VAT Accounts maintained by institutions based outside Poland

A government-initiated draft law to amend the Personal Income Tax Act, the Corporate Income Tax Act and certain other acts was transmitted to the Sejm on 25 September 2018

The draft proposes that the changes become effective as of 1 January 2019

In determining the thresholds which trigger transfer pricing documentation requirements, refererence to the entire tax group as a single taxpayer is needed

"NISA" determines new rules according to which support in the form of income tax relief may be offered to undertakings for implementing new investment projects in the territory of Poland

Finance Ministry published guidelines on 25 April 2018

International Tax Review article by Lidia Adamek-Baczyńska and Olga Palczewska, Doradztwo Podatkowe WTS&Saja

On 21 March 2018 the European Commission published proposals for directives regarding taxation of digital businesses: the target solution and an interim solution have been tabled

The new law is fundamentally important in the context of real estate tax on wind turbines

50% Allowance: a recordkeeping system has to be in place

Prepare master files and local files - submit a transfer pricing documentation representation - submit CIT-TP/PIT-TP report

New law, will change the rules on how to prepare and submit financial statements to the National Court Register (KRS) and tax authorities

Tax ruling issued on 11.01.2018 (0111-KDIB1-2.4010.448.2017.1.AW) 

New VAT rates matrix may change the current classification of certain goods or services

This affects among other things preparing master files and local files

New law: the tax authorities may assess taxpayer's income to be higher (or loss to be lower) than actually declared by him

Public tax ruling from the Minister for Finance and Development addresses Article 25a of the Personal Income Tax Act and Article 9a of the Corporate Income Tax Act

Decition by Warsaw Provincial Administrative Court regarding the tax treatment of reimbursements made by employers to employees for use by the latter of their private cars for company purposes

Recent communiqué to the minimum income tax on commercial properties, which Poland introduced as of 1 January 2018

Recent change in Article 11(4) of the Corporate Income Tax Act ("CITA")

Effective date of the split payment mechanism for 1 July 2018

No cap on the basis on which pension and disability insurance contributions are assessed

The case related to real estate tax on telecommunication containers

Private tax ruling by Director of National Revenue Information ("Authority") dated 9 October 2017

Law to abolish the cap on the assessment of social security contributions has been submitted to the President for signature

31 December 2017: deadline to file CBC-P notification for the reporting year from 1 Jan 2017 to 31 Dec 2017

The tax treatment of certain corporate restructurings will change as of 1 January 2018 with entry into force of regulations amending the CIT Act

Polish President signed the Act of 27 October 2017 to amend the Personal Income Tax Act, the Corporate Income Tax Act and the Act on Flat-Rate Tax on Incomes of Certain Natural Persons.

The Director of National Revenue Information issued a private tax ruling in relation to a case of withholding tax on rental of industrial equipment