Changes concerning tax regulations in Poland | News Flash

Despite the holidays, the taxpayers’ notebooks are slowly missing blank pages to note the tax changes: postponement of the breakthrough changes in withholding tax, new returns on real estate tax (this tax was also the subject of a very important court ruling at the beginning of July), explanations on the IP BOX and many others.

In order to organize the material, we invite you to read a compressed extract of the most important tax news of the last two months. Simultaneously, we would like to assure you of the support Accace is ready to provide in this regard.

Mandatory split payment from 1 November 2019

• Mandatory split payment will cover transactions subject to VAT in Poland, with the value exceeding PLN 15,000
• The mechanism will be applied to selected goods and services
• Sanctions include a fine of 100% of the VAT value resulting from the invoice, if information about the transaction being subject to the reverse charge mechanism is missing

Suggested action

• Analysis of transactions concluded by a Taxpayer – selection of goods/services subject to a reverse charge regime
• Identification of duties with respect to the application of the reverse charge mechanism

The new VAT rates matrix and other changes in value added tax

• Radically simplified VAT rates for goods and services: part from 1 November 2019 (including e-books), others from 1 April 2020
• Introduction of a Binding Rate Information (WIS) to ensure that VAT rates are correctly applied by the taxable person as from 1 November 2019
• Reduction of VAT rates

Suggested action

• Verification of the taxable person’s activities under VAT rates application
• Calculation of the tax effect of changes introduced on the basis of the activity of a Taxpayer

PIT 17%, increased tax deductible costs and no PIT for young people

• Since August 1, 2019 : income of persons up to the age of 26, up to the amount of 85 528 PLN in a tax year will be exempt from PIT
• Since October 1, 2019: all taxpayers who settle according to the tax scale will benefit from a PIT reduction to 17% and from increased tax deductible costs

Suggested action

• Verification of the employer’s obligations as a payer of PIT advances, preparation of the procedure conditioning the application of the exemption as early as August 2019
• Calculation of the tax refund allowances in the annual PIT settlement for 2019

EU funds for plastics

• Possibility of co-financing research and development projects related to plastics (from EU funds)
• Co-financing in the amount of 80% of the eligible costs of the project (including employee remuneration, investment expenditure, depreciation of equipment)
• Deadline for the applications: September 2 to November 15, 2019

Accace support

• Preparation of application documents, cooperation within the scope of the application procedure
• Advisory on the use (settlement) of the received grant

IP BOX – tax explanations

• Ministry of Finance published tax explanations regarding preferential 5% tax rate on revenues from qualified intellectual property rights (IP BOX)
• The document contains an explanation of the method of calculating income subject to IP Box together with practical examples

Suggested action

• Analysis of the possibility of using IP BOX preferences
• Calculation of potential benefits, taking into account the product range of the taxpayer, R&D costs and sources of income

WHT – new provisions postponed until 31 December 2019

• CIT payers may apply exemptions and reduced WHT rates in the second half of 2019 under the existing rules – without the need to submit a declaration or obtain an opinion, also for the payments exceeding PLN 2 million in a tax year
• The obligation of „due care“ as well as new deifnition of beneficial owner remain in force

Suggested action

• Verification of the right to benefit from WHT preferences according to current and planned (postponed) regulations
• Assistance in obtaining an individual interpretation or opinion on the exemption before making payments subject to new regulations in 2020

New, unified Real Estate Tax returns

• As of 1 July 2019, all municipalities in Poland use the new RET returns
• In accordance with previous practice, the forms of RET returns were defined by the municipal councils
• The new forms should be used when the obligation to submit a declaration or correction arises after 30 June 2019

Accace support

• Support with filling in the return in accordance with the Regulation establishing uniform format
• Determination of the subject and tax base on the basis of current case-law

Facilities excluded from the definition of a building structure – not subject to RET

• Turn in the jurisprudence concerning the taxation of cableway, ski lifts etc.
• Since the definition of a building structure excludes the word “facilities”, the facilities are not subject to real estate tax, unless they have construction parts
• Supreme Administrative Court, verdict of 9 July 2019 (II FSK 2693/17)

Accace support

• Determination of the subject and tax base on the basis of current case-law on the basis of amended construction law regulations and judgments in this respect
• Cooperation within the revision of RET returns of previous years

Deadline for submission of transfer pricing statements and information

• Obligation to submit a statement and a CIT-TP report within 9 months after the end of the tax year; for entities whose financial year is a calendar year, the deadline is 30 September
• If the Taxpayer chooses new transfer pricing regulations – submittig the statement only by means of electronic communication
• Ministry explanations on the elements, period and form of the statement

Accace support

• Identification of transfer pricing documentation duties, including mandatory information as required by law
• Preparation of the transfer pricing documentation