We present below a short summary of the most important changes in tax/business law and practice in July.
Legislation
- A draft act amending the Act on the Agricultural Protection Fund and certain other acts has been published on the website of the Government Legislation Centre – i.a. reduction of the multiplier to payments from 0.125% to 0.07% and the transition to annual (instead of quarterly) settlement of the fee.
- A draft act on adaptation of the general product safety has been published on the website of the Government Legislation Centre – i.a. adaptation of the general product safety supervision system in Poland to EU regulations/new competences of authorities and increase of penalties.
- The list of legislative works of the Council of Ministers includes the assumptions of the Regulation of the Council of Ministers on the amount of the minimum wage for work and the amount of the minimum hourly rate in 2025. It is proposed that from 1 January 2025, the minimum wage for work should be PLN 4,626, and the minimum hourly rate should be PLN 30.20.
Practice in taxes
Income taxes and transfer pricing
- Simplified merger of two companies does not generate CIT revenue – judgment of the District Administrative Court in Warsaw of 10 July 2024, file reference number III SA/Wa 947/24.
- The “IP Box” relief has a broader scope than eligible costs for the purposes of the B+R relief, therefore non-eligible costs for B+R can be included under letter a of the “Nexus” indicator – judgment of the Supreme Administrative Court of 11 July 2024, file reference number II FSK 1363/21.
- The Ministry of Finance does not plan to lift the ban on depreciation of residential premises – the Minister of Finance’s response to a parliamentary question of 15 July 2024, file reference number DD6.054.2.2024.
VAT
- The creation of a VAT Group by entities with a limited right to deduct input VAT is not contrary to the VAT Directive – judgment of the Court of Justice of the EU of 11 July 2024, file reference number C 184/23.
- The Supreme Administrative Court has asked the Court of Justice of the EU a question for a preliminary ruling on VAT – whether the taxpayer has the right to apply the 0% rate if the transaction originally declared as ICS involves the export of goods outside the EU (decision of the District Administrative Court in Warsaw of 12 July 2024, file reference number III SA/Wa 1231/24).
- Reimbursement of travel and accommodation costs to contractors/contractors is exempt from PIT (up to the amount under Article 21 sec. 1 point 16 let. b of the Polish PIT Act) – judgment of the Supreme Administrative Court of 19 July 2024, file reference number II FSK 1428/21.
- Handing over goods in exchange for reaching a certain turnover ceiling may be treated as a rebate and not a free transfer in VAT – judgment of the Supreme Administrative Court of 24 July 2024, file reference number I FSK 1470/20.
International Taxes
- The obligation for the payer to verify the status of the recipient as the beneficial owner in WHT also existed before 2019 – judgment of the Supreme Administrative Court of 17 July 2024, file reference number II FSK 2092/23.
Other
- The Supreme Administrative Court will decide whether the head of the tax office may impose the order of immediate enforceability on the assessment decisions of the head of the customs and tax office (decision of 9 July 2024, file reference number II FSK 442/24).
- Neither a slight delay nor a negligible value exempts from the obligation to pay for the costs of recovering receivables – judgment of the Court of Justice of the EU of 11 July 2024, file reference number C-279/23.
- The Constitutional Tribunal ruled that the provisions of the Tax Ordinance on Reporting Tax Schemes (MDR) are partially inconsistent with the Constitution of the Republic of Poland (judgment of the Constitutional Tribunal of 23 July 2024, file reference number K 13/20).
- The provisions of the EU DAC6 directive (regarding MDR) do not violate EU law – judgment of the Court of Justice of the EU of 29 July 2024, file reference number C-623/22.
