It is 14 February 2022. We invite you to the next episode of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.
In today's episode:
- Polish Deal changes adjusted under amendments to the Polish Code of Commercial Companies
- SAC: depreciation rates may be adjusted retroactively
- Changes to interest on tax arrears
- Granting a free-of-charge guarantee can be treated as a “transaction” under TP provisions
- PIT-28 with submission deadline at the end of February
Polish Deal changes adjusted under amendments to the Polish Code of Commercial Companies
During the session held on 9 February 2022, the Lower House of the Polish Parliament passed a bill amending the Polish Code of Commercial Companies and certain other acts. Essentially, most amendments relate to companies, yet some of them are aimed at adjusting changes brought about by the Polish Deal. According to the new regulations, most of the tax-free revenue, in the broad sense, is to be excluded from the revenues considered when calculating the health insurance premium. Moreover, the revenue used to calculate the insurance premium will not be increased by depreciation write-offs entered into tax-deductible costs before 1 January 2022. The bill is now being considered by the Senate.
SAC: depreciation rates may be adjusted retroactively
On 3 February 2022, the Supreme Administrative Court issued an unprecedented ruling (case file II FSK 1413/19), where it confirmed that under Article 16i(5) of the CIT Act, taxpayers can adjust depreciation rates for periods for which the statute of limitation has not yet expired. In the oral statement of reasons, the SAC confirmed that a taxpayer can decrease depreciation rates for a given year after it has already begun. The only requirement is that the adjustment applies from the first month of each tax year. In other words, the taxpayer can make such an adjustment anytime they make depreciation write-offs, and it will apply retroactively. The right to correct the tax return is only restricted by the statute of limitations on the tax liability.
Changes to interest on tax arrears
During a meeting held on 8 February 2022, the Monetary Policy Council decided to increase the NBP interest rates by 0.50%.
Consequently, as of 9 February 2022, the interest on tax arrears and interest on unpaid social security contributions have increased to 8.5%. However, the statutory interest for “late commercial transactions” has not been adjusted and is still set (for the period 1 January – 30 June 2022) based on the NBP reference rate, applicable as at 1 January 2022.
Granting a free-of-charge guarantee can be treated as a “transaction” under TP provisions
In the statement of reasons for the ruling dated 3 February 2022 (case file II FSK 1475/19), the Supreme Administrative Court stated that since the notion of “transaction” has not been defined in Article 9a of the CIT Act, nor any other tax or civil law provision, it should therefore be considered that it does not have a legal definition. Consequently, relying both on the linguistic interpretation, referring to the dictionary wording of the notion, and the jurisprudence in this regard, it should be concluded that the concept of transaction should be treated broadly and cannot be equated solely with sales contracts within the meaning of the Civil Code. This, in turn, means that the notion of transaction equally covers a legal act consisting in granting a free-of-charge loan guarantee.
PIT-28 with submission deadline at the end of February
The PIT-28 form is intended for natural persons earning revenue covered by the lump-sum taxation scheme. It is submitted by taxpayers who earned revenue from economic activity in 2021, partners of a private or general partnership and taxpayers settling revenue from rent, lease, sublease, and sub-rent. Partners of private or general partnerships must submit their returns separately, i.e., each on their own behalf, with an additional PIT-28 / B form. The rate of lump-sum tax on rental revenue up to the amount of PLN 100,000 is 8.5 percent and 12.5 percent on the surplus over PLN 100,000. The return may be submitted in person, via registered mail or electronically, confirmed by an Official Receipt Certificate.
Read the next episodes of the “Weekly Tax Review”, where, until 2 May 2022, we will explore the key aspects of the 2022 PIT return season.