Newsletters

On 5 March 2019, the Sejm received the governmental draft act amending the Value Added Tax Act and the Tax Ordinance Act. After a long while, on 3 July 2019, the Sejm decided to send the draft to the Public Finance Committee. Given the fact that the amendment includes significant changes of the VAT rates, it is a good idea to learn about the planned amendments today.

On the last working day preceding the entry into force of revolutionary solutions in withholding tax, the Minister of Finance once again decided to postpone them. This time, the Ministry of Finance decided that the new regulations on the obligation to withhold tax at domestic rates shall enter into force as of 1 January 2020.

On 15 April 2019, the Act of 4 April 2019 amending the Act on the Exchange of Tax Information With Other Countries and Certain Other Acts (Journal of Laws of 2019, item 694), hereinafter: “Amendment”, was published in the Journal of Laws. The new regulations introduce changes among others in the Country-by-Country Reporting mechanism, hereinafter: “CBC”. This newsletter will give you a summary of the introduced regulations.

By the end of April 2019, authorisations of simplified VAT accounting procedures issued before the entry into force of the Union Customs Code (UCC) will be re-assessed. The process of obtaining new authorisations will be more restrictive.

On 1 January 2019, new provisions of the PIT Act and the CIT Act will enter into force as regards claiming expenses related to passenger cars used for business purposes. They will introduce a major change in the existing rules and principles concerning, among others, capital allowances, determining the tax deductible costs of selling, as well as claiming lease rentals and running costs of passenger cars against tax.

By virtue of the Act of 4 October 2018 on employee capital plans, all employers are required to implement the Employee Capital Plan (PPK) in their organizations.

On 14 November 2018 the Constitutional Court announced its final verdict on the amendment to the Social Insurance System Act of 14 November 2018.

On 24 August 2018, the Ministry of Finance published a draft act amending the Personal Income Tax Act, the Corporate Income Tax Act, the Tax Ordinance Act and certain other acts (hereinafter referred to as the “Draft Amendment”). In the present article, we will focus on the most important planned changes in the Corporate Income Tax Act (hereinafter referred to as the CIT Act), as they can be approached from two perspectives. On the one hand, the Draft provides for considerably simplified procedures and introduces new tax incentives, and on the other hand, it introduces significant restrictions and difficulties for Polish entrepreneurs while boosting tax revenues in an effort to make the tax system more efficient.

On its website the Ministry of Finance has published the long-awaited tax explanations about the application of the mechanism of split payment between value added taxpayers. We should remember that as of 1 July 2018 entrepreneurs are entitled (but not required) to make payments with the use of this type of settlement system.