Tax alerts - archive - page 2

The efforts to make the collection of the value-added tax more effective are an evident tendency in all of the European Union, including Germany. The tax administrations perceive goods coming from outside Europe, mainly from Asian markets, to be a serious problem at present. These vendors often do not pay taxes, which significantly distorts the competition and, what is more, it depletes the budgets of EU countries.

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.