It is 21 March 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:
- New regulations relating to Ukrainian citizens’ stay and work in Poland
- Projected amendments to anti-payment backlog provisions
- Amendments to Polish-Maltese double tax treaty
- Obligation of integrating card readers and cash registers further postponed
- CJEU on interest and a Member State’s liability
- Extension of the deadline for submitting CIT-8 and providing information on real estate companies
- Revenue on share alienation abroad to be settled in Poland
New regulations relating to Ukrainian citizens’ stay and work in Poland
On 12 March 2022, the Act on aid for the citizens of Ukraine in connection with the armed conflict on the territory of that country was signed by the President and on the same day published in the Polish Journal of Laws. The provisions of the Act have a retroactive effect as of 24 February 2022. Under the adopted Act, a Ukrainian citizen’s stay in the territory of the Republic of Poland is considered legal for 18 months counted from 24 February 2022, if such a citizen arrives legally to Poland in the period from 24 February 2022 and declares an intention to remain in Poland. Ukrainian citizens are encouraged to apply for award of the Polish personal identification number (PESEL number). Moreover, citizens of Ukraine, whose stay in the territory of the Republic of Poland is considered legal, are entitled to an aid in the form of a single monetary payment of PLN 300 per person. They can also use several other benefits. The raft of amendments also covers new tax preferences.
Projected amendments to anti-payment backlog provisions
The Minister of Economic Development and Technology prepared a draft bill amending the Act on counteracting excessive payment delays in commercial transactions and the Act on public finances (commonly referred to as the Anti-Backlog Act). The goal thereof is to clarify the existing provisions, simplify the reporting obligations, and improve efficiency of proceedings on excessive delays in payments. The most important proposals include, among others, simplification of the reporting obligation related to payments as well as clarification and regulation of issues related to the said obligation. Moreover, the purpose of the bill is to improve efficiency of proceedings regarding excessive delays in payments and flexibility of related penalties, as well as to declare contractual reservations prohibiting the creditor from disposing of contractual receivables invalid.
Amendments to Polish-Maltese double tax treaty
On 11 March 2022, the provisions amending the Convention between the Republic of Poland and the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income came into effect. The amendments relate to the definition of dividends, the amount of tax on interest which may be taxed in the Contracting State in which they arise, taxing technical service fees in the same way as license fees, defining the concept of technical services, rules for taxing gains from property alienation, directors' fees, rules for the avoidance of double taxation, MAP, exchange of information and the addition of provisions on the prevention of treaty abuse.
Obligation of integrating card readers and cash registers further postponed
On 15 March 2022, the Ministry of Finance announced that it currently envisages to defer the obligation to integrate online cash registers with card readers imposed on businesses to another 2.5 years. The obligation would start to apply from 1 January 2025 (instead of 1 July 2022, as it was initially announced). Importantly, until the end of 2024, an administrative fine of PLN 5 thousand will not be imposed on entrepreneurs failing to ensure card reader and cash register integration.
CJEU on interest and a Member State’s liability
By way of decision dated 15 March 2022 (case file II FSK 1602/19), the Polish Supreme Administrative Court requested the CJEU to give a preliminary ruling on whether Article 78(5)(1) and (2) of the Polish Tax Code is in line with the EU law. The request relates to situations where a taxpayer demands a refund of the overpayment, following the CJEU’s ruling on the incompatibility of Polish law with the EU regulations. The authority seeks to establish whether a taxpayer applying for a refund of overpayment after 30 days from the publication of the CJEU ruling, can receive interest calculated only up to that 30th day, or up to the day of tax being returned by the tax authority.
Extension of the deadline for submitting CIT-8 and providing information on real estate companies
The Minister of Finance signed a decree on extending the deadline for fulfilling selected obligations related to corporate income tax. Consequently, the deadline for submitting CIT-8 and CIT-8AB returns, along with CIT-8E forms, and declaring revenue, costs, and income related to transformations via return by lump-sum corporate income tax payers, got extended until 30 June 2022. Furthermore, a draft decree on extending the deadline for providing information on real estate companies was announced. It extends the deadline for submitting information on holding rights in real estate companies with tax or financial year ending in the period from 31 December 2021 to 31 May 2022 until 30 September 2022.
Revenue on share alienation abroad to be settled in Poland
PIT-38 is the primary return form used by stock exchange investors. It is applied, inter alia, to settle revenue earned from alienation of securities or shares in companies. It should be kept in mind that the paying agent is obliged to automatically collect a 19% tax on dividends, interest on bank accounts, and other capital gains paid out. This means that the taxpayer does not have to declare this type of revenue in the submitted PIT-38 form. It should also be stressed that the revenue from the alienation of shares in foreign entities earned by Polish tax residents must be obligatorily declared in the Polish tax return. The revenue and the associated tax-deductible costs should be declared by means of the PIT/ZG form, constituting an annex to the PIT-38 return.
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.