We present below a short summary of the most important changes in tax law and tax practice in October:
Legislation
- The bill of amendment to the CIT Act and other tax acts was published in the “Journal of Laws” (item 2180). The project assumes, among others postponement and amendment of the “minimum” tax regulations, elimination of “hidden dividends” or changes in the scope of: CFC, WHT, thin capitalization or “Estonian” CIT. We wrote about the changes HERE. Additionally, the project:
- removes the documentation obligation for “indirect tax heaven” transactions (declarations) – with retroactive effect from 2021;
- increases the documentation thresholds for “direct tax heaven transactions” (PLN 500 / 2,500 thousand);
- extends the validity of WH-OSC statements (with effect from 2021);
- extends the “Anti-Inflation Shield” until the end of the year;
- extends VAT rates at 23/8% until 2023.
- The draft act amending the Penal Fiscal Code (including the extension of the limitation period or the separation of fiscal penal proceedings from tax / administrative court proceedings) was withdrawn from legislative works.
- The Decree of the Minister of Finance amending the decree on cash registers (item 2029) was published in the “Journal of Laws” – rescheduling the deadline for compulsory fiscalisation in the car wash industry from 1 October 2022 to 1 February 2023.
- On the website of the Government Legislation Center a draft of Decree of the Minister of Infrastructure has been published – a change to increase the mileage rates (for passenger cars from PLN 0.5214 / 0.8358 per km to PLN 0.89 / PLN 1.038 per km).
- The Council of Ministers adopted a draft act on emergency measures aimed at limiting the amount of electricity prices and supporting certain consumers in 2023 – taxation with the “windfall tax” (only) of energy companies.
- The Sejm adopted the Act of September 29, 2022 amending the Act on counteracting excessive delays in commercial transactions and the Act on Public Finance – simplifying and clarifying amendments. The Senate proposed several changes and passed the act back to the Sejm. We wrote about the changes HERE.
- The Council of Ministers adopted a draft act amending the act on excise duty and certain other acts – the changes concern, inter alia: the extension of the possibility of keeping records and other documentation in paper form until January 31, 2024, extension until December 31, 2029. exemptions from excise duty for hybrid cars with a capacity of up to 2000 cm³, simplification of the register / declaration for entities producing electricity: from generators with a total capacity of up to 1 MW (including RES) and consuming it. The project was submitted to the Sejm.
Tax practice
Income taxes and transfer prices
- The discount coupon for the laureate does not create taxable income in PIT (judgment of the Supreme Administrative Court of 4 October 2022, file ref. II FSK 298/20).
- The thin capitalization provisions do not apply to bills of exchange payments (judgment of the Supreme Administrative Court of 6 October 2022, file ref. II FSK 235/20).
- The value of the employer-financed reimbursement of the car top-up costs should be included in the lump-sum income for PIT purposes (PLN 250/400) – change in the individual interpretation, ref. DOP3. 8222.34.2021.HTCE).
- The costs of the CSR programmes are tax-deductible costs, not being in particular representation costs (judgments of the Supreme Administrative Court of 13 October 2022, file ref. II FSK 362/20 and 363/20).
- Compensating the contractor for the payment of statutory interest does not constitute a tax-deductible cost (judgment of the Supreme Administrative Court of 18 October 2022, file ref. II FSK 432/20).
- “Good faith” is relevant in terms of VAT, but does not apply to the settlement of tax-deductible costs in income taxes (Supreme Administrative Court judgments of 7 October 2022, file ref. II FSK 593/20 and II FSK 547/20).
- Loans granted by the company before joining the “Estonian” CIT do not constitute “hidden profits” – individual interpretation of the Director of the National Tax Information of 13 October 2022, file ref. 0111-KDIB1-2.4010.594.2022.1.MS.
International taxes
- The Ministry of Finance does not envisage introducing special rules for determining the tax residence of Ukrainian citizens in Poland – the answer of the Minister of Finance of 24 October 2022 to the parliamentary question no. 36124 (ref. DSP3.054.12.2022).
VAT
- Financial services provided on the basis of a sub-participation agreement are VAT exempt (judgment of the CJEU of 6 October 2022, file ref. C-250/21).
- Rent by a foreign taxpayer of a warehouse in Poland operated by Polish related entities does not create a fixed establishment for VAT purposes (judgment of the Supreme Administrative Court of 11 October 2022, file reference number I FSK 396/21).
- Culpable inventory shortages create a necessity to correct the input tax (judgment of the Supreme Administrative Court of 14 October 2022, file reference number I FSK 1323/18).
- The Ministry of Finance released an updated test version of the National System of e-Invoices Taxpayer Application: LINK.
Other
- In the legal status before 28 June 2015, the existence of a technical and operational relationship between these facilities and the gas pipeline was decisive for the application of the real estate tax to the stations and reduction points, which determines the taxation of these facilities as structures or parts thereof (resolution of the Supreme Administrative Court of 10 October 2022, file reference number III FPS 2/22).
- The Supreme Administrative Court presented a panel of 7 judges of the Supreme Administrative Court a legal issue that raises serious doubts regarding the impact of the provisions of the “covid act” on the course of time limits provided for by the provisions of tax law – whether the commencement and suspension of the time limits provided for by the provisions of tax law are also suspended, and if so, or only to the benefit of taxpayers? (decision of the Supreme Administrative Court of 11 October 2022, file reference number I FSK 2545/21).
