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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.

As of 1 July 2018, filing of the Standard Audit File for Tax (SAF-T, in Polish abbreviated as JPK) shall applyy to all taxpayers – entrepreneurs keeping their books in electronic format.

30 June 2018 is the deadline for the approval of 2017 financial statements for entities whose financial year ended on 31 December 2017.

As of January 2018, new rules have been in force on the so-called minimum tax on commercial real estate. The Ministry of Finance is currently working on the introduction of changes to that tax, which are the result of consultations between the Polish government and the European Commission (hereinafter: EC).

The introduction of a split payment mechanism has been discussed for a long time now. We wrote about it in June last year (20/2017). The new law was meant to be valid from 1 January 2018. Now we know it will be valid from 1 July 2018.