WTS in Poland

The Polish Deal legislative package currently processed in the Sejm includes a proposal to introduce what is called minimum income tax (CIT Act, Article 24ca). 

On 31 August 2021 the Director of National Revenue Information (“Authority”) issued the private tax ruling, ref. 0111-KDIB1-2.4010.231.2021.2.MS, relating to the recognition on form TPR of domestic controlled transactions that are exempt under Article 11n(1) of the CIT Act.

On 1 September 2021 the Finance Ministry (FM) issued the guidance document in relation to VAT e-commerce package in force as of 1 July 2021.

On 8 September 2021 the Finance Ministry presented proposed changes to draft legislation introducing the "Polish Deal". The changes, made on the back of public consultations regarding the initial proposal (see our Newsletter 39/2021), will mainly affect the mentioned issues.

Poland plans to allow VAT groups.

The finance Ministry's representatives have published an article with first statistics based on transfer pricing reporting (form TPR) for 2019.

The public consultations have commenced on draft Transfer Pricing Forum Recommendations on the transfer pricing implications of the COVID-19 pandemic for Polish taxpayers ("Recommendations").

The Finance Ministry ("FM") has published Guidance of 10 August 2021 on the equalization relief under Article 27g of the Personal Income Tax Act (Journal of Laws of 2021, item 1128, as amended; the "Guidance").

This is to let you know of plans to make an important amendment to the CIT Act which introduces a new test for having the place of management in Poland. This amendment, which is part of the Polish Deal package of proposed legislation, seeks to add a new provision to the CIT Act, specifically sub-paragraph 6 to be added to Article 3.

For years there has been a split between administrative courts and tax authorities about the deductibility timing for what are called indirect tax costs for the purposes of corporate income tax.

The “Polish Deal” (Polski Ład) was published on 26 July 2021 (hereinafter the “Bill”).  The key change as regards VAT is the possibility to form the so-called VAT Groups for tax purposes as of 1 January 2022.

The publication of legislation proposed to amend tax regulations to introduce the "Polish Deal". Most the changes are proposed to enter into force on 1 January 2022. For now we offer a synthetic list of the major changes.

A new revision of forms TPR-P and TPR-C has been published by the Finance Ministry in the Public Information Bulletin. The new forms are used to file transfer pricing information for tax years starting after 31 December 2019.

This is to draw your attention to the regulation of the Minister for Finance, Funds and Regional Policy on the non-collection of income tax relating to forgiven debt represented by financial subsidies granted under the Financial Shields of the Polish Development Fund PFR and made non-refundable ("Regulation").

The Polish tax authority has issued guidance on new documentation requirements for transactions involving tax havens. The article explains to what extent this has a practical effect for taxpayers.

The Electronic Service of Documents Act ("ESDA"), which will replace the service of documents by traditional mail with registered electronic service, will come into force on 5 October 2021. This article summarises the key implications for businesses.

Our summary of R&D Incentives provides guidance where such incentives are provided, and who in WTS Global can support you to gain from these incentives for your business or individually the most.

In their latest newsletter, our tax experts at WTS&Saja outline the most important changes in the Regulation on the scope of information to be provided in VAT returns and records, which came into force on 1 July 2021.

On 28 June 2021 the Finance Ministry opened a tax preconsultation process in relation to a working paper setting out proposed amendments to transfer pricing regulations. In this article you will find a summary of the major changes that have been proposed plus comments provided by WTS&SAJA in course of the preconsultation process.

Effective from 1 January 2019, income tax legislation was amended to introduce revolutionary changes in the Polish WHT framework.

In their latest newsletter, our experts at WTS&Saja summarize the new mechanisms and preferences of the proposed law of 22 June 2021 amending the Personal Income Tax Act, the Corporate Tax Act and certain other laws.

In response to Parliamentary Question No. 24182 regarding withholding tax, an Undersecretary of State in the Ministry of Finance said that the deferred regulations introducing the pay and refund mechanism will undergo substantial changes.

Further VAT changes are expected to be introduced over the next months in 2021. The amending legislation has not been finalised yet, even though some of the changes would become effective as early as 1 July 2021. Below we briefly mention the most important of the proposed amendments.

Poland keeps up with its digital agenda and is about to implement e-invoicing via a national invoicing system.

On 3 April 2020, the OECD issued the “Secretariat Analysis of Tax Treaties and the Impact of the COVID-19 Crisis”, which addresses several tax concerns.

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.

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

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

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

Significant changes in withholding tax are scheduled for 2019 in Poland

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 the most important changes

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

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