Kategoria Tax

The taxpayer raises the risk of his business, including the risk related to the volatility of currency exchange rates, the Regional Administrative Court in Warsaw said in a case concerning the possibility of selling the subject of a currency lease agreement at a price lower than the market price in a situation where the sum of receivables under the agreement - after converting it into zlotys - does not correspond to the initial value of the subject of the agreement. In the Court's opinion, the books are kept in Polish zlotys and only the entries made in this currency are relevant for tax purposes.

The draft amendment to the VAT law published on March 15, 2023 confirms that the deadline for the introduction of obligatory e-invoicing will be postponed to July 1, 2024. It was also decided to take into account some of the demands of, among others, entrepreneurs, accountants and the IT sector, including the application of sanctions, as well as the possibility of issuing invoices before making a supply or providing a service.

In a recent judgment, the Supreme Administrative Court (SAC) again ruled that the restrictions provided for debt financing costs do not apply to operating leases. The second analogous ruling in this case demonstrates the formation of a line of jurisprudence favorable to lessees, which may already be the basis for creating tax policy on this issue. The ruling may put leasing companies at a disadvantage, for whom the SAC's interpretation entails a greater risk of excess debt financing costs.

The new withholding tax rules, which effectively has come into force with the “Polish Deal”, have made tax settlement drastically more difficult for remitters. One of the biggest challenges is determining whether - and possibly how - tax should be withheld in the case of dividend payments to foreign parent companies. Unfortunately, a recent ruling by the Supreme Administrative Court (SAC) only widens fuss in this regard.

The development of remote work and the increasing mobility of workers, phenomena that accelerated during and after the pandemic period, have resulted in an increasing number of taxpayers facing obligations related to the settlement of income earned abroad (as well as the settlement of income earned in Poland by persons from abroad). Key in this context is, first of all, the correct determination of the so-called tax residency and the choice of the method of avoiding double taxation.

The regulations implementing the so-called Omnibus Directive and the Goods Directive came into force on 1 January 2023. They mostly apply to consumer sales - both distance and in person , but in some cases it involves sole traders. The new rules certainly empower buyers’ position and make it necessary for traders to analyse their existing sales processes and make the necessary modifications.

The Monetary Policy Council has once again raised NBP interest rates. Although economists had expected a larger increase, this does not change the fact that interest rates have already been raised 10 times since October 2021, resulting in an increase not only in mortgage payments, but also in interest rates that are important from the perspective of taxpayers - tax, statutory and maximum interest, which translates into a higher - compared to last year already twice - value of interest for tax liabilities that have not been paid within the statutory deadlines.

A contract after the conclusion of which the parties have not issued an invoice may be regarded as an invoice if it contains all the information necessary for the tax authorities of a Member State to establish whether the substantive conditions for the right to deduct VAT are satisfied in a given case. This follows from the judgment of the CJEU in case C-235/21 Raiffeisen Leasing.

Through an amendment to the regulation for which the Ministry of Infrastructure is responsible, the mileage amount to which employees who use private vehicles for business purposes are entitled will change. Consequently, the monthly lump sum limits for such employees will also be updated. For most drivers, however, the amounts proposed in the draft will not compensate for rising operating costs. The regulation also does not regulate the reimbursement of employees for the use of, among other things, private electric cars.

The possible obligation to pay the minimum tax in 2022 will be abolished. In turn, starting next year, its construction will be modified quite significantly. These are the most important changes envisaged by the draft amendment to the Polish Order in the area of CIT. The level of profitability ratio from operations, below which companies will be subject to the tax, is to be raised. There will also be an alternative, simplified method of determining the tax base.

The Finance Ministry has been announcing for many weeks the publication of a draft law, an amendment to the regulations introduced under the Polish Deal (which today can already be referred to as the Polish Deal 1.0). The bill itself is not yet here, but the Finance Ministry has published the assumptions for the changes. They are numerous, and some of them - very significant.

A doctor, taking part in training courses organized and financed by a company, at which this company advertises its products and equipment, obtains a gratuitous benefit, this is what the Supreme Administrative Court ruled in the judgment of 2 June 2022 no. II FSK 2547/19. It was pointed out that the decisive factors are the voluntary use of the benefit by the recipient and the creation of a tangible economic benefit on his part. This is yet another time that the courts have agreed with the tax authorities' pro-fiscal approach.

Until now, strictly defined tax authorities have been able to request bank information on individuals who have the status of suspects, i.e. those who have been formally charged. From the beginning of July, the request will be able to apply to everyone without exception, and the heads of 400 tax offices operating in Poland will also be able to access bank data. However, the Ministry of Finance does not exclude that the provisions that allow for far-reaching interference in citizens' privacy will be amended.

The Advocate General of the CJEU has delivered an opinion in Case C-250/21 regarding services provided by investment funds under a sub-participation agreement for VAT purposes, stating that they are not exempt from VAT. This surprising opinion will be relevant to all financial institutions that use or provide financing in this form.

In a verdict on April 26, 2022, the Supreme Administrative Court ruled that debt financing cost limits do not apply to operating leases. This is good news for the beneficiaries, because even in significantly indebted entities it will not be necessary to exclude financing from tax costs due to exceeding the statutory limit. The problem may arise on the part of the financing entity, for whom - due to the assumption that installment revenues do not increase interest expenses - there may be an excess of debt financing costs.

The law amending the Polish Deal - after accepting some of the Senate's amendments - has been signed by the President. Compared to the originally enacted law, the rules for single parents to account for their children were changed, and the percentage of tax donated to public benefit organizations was increased. The provision allowing "linemen" to deduct part of the health contribution paid from their taxes was also clarified. What is the list of key changes that will be introduced by the amendment to the Polish Deal - already including the Senate amendments?

It will soon be a year since the amendment to the Excise Tax Law came into effect. This is important information, because exactly on July 1, 2022, entities that have made "modifications" to registered vehicles, which as a result have changed type to a passenger car, will have a tax obligation for making these changes. As a result, these entities will be required to file a declaration and calculate and pay excise taxes. The amendment also indicates the deadlines for carrying out the above actions.

The Ministry of Justice has completed works on amendments to the Act on Land and Mortgage Registers. They are to improve the operation of land and mortgage registers by, among others, granting notaries the right to make entries in land and mortgage registers. This should result in a significant shortening of a waiting period for making such entries. Currently, the draft is subject to works within government and it will probably take at least a few months before it goes to Parliament and comes into force.

Photovoltaic leasing has become an important issue in the business of leasing companies for some time. This topic is constantly popular, and the changes in the energy market caused by the war in Ukraine may lead to an intensified interest in the installation of such equipment. In this connection, it is worth noting that one of the first - if not the first - interpretation on accounting for expenses of this type appeared in March 2022.

Despite the fact that the new regulations on debt financing costs (Article 15c of the CIT Act) have been in effect for more than 3 years, the practice in this regard is still not properly established. The Supreme Administrative Court's verdict on March 1, 2022, although it does not explicitly refer to leasing, may be problematic for some taxpayers.