It is 27 June 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:
- Bill bringing CIT amendments the Polish Deal program
- User authentication on PUESC
- Upcoming changes in terms of certificates issued by tax authorities
- “Fit for 55” package announced by the EU
- Draft decree on the use of the e-Tax Office utility
- Principles of determining tax-deductible costs of selling shares in a joint-stock company formed through transformation of a limited partnership, established as a result of a limited liability company transformation
Bill bringing CIT amendments the Polish Deal program
On 28 June 2022, a draft bill amending the act on personal income tax and certain other acts was published on the Government Legislation Centre’s website. The bill primarily seeks to amend the Polish Deal program in terms of CIT provisions, but the changes brought by it are very extensive, stretching from modification and postponement of minimum income tax provisions, amendments to WHT provisions, and clarifying the obligation of entities bound to submit transfer pricing reports to provide the head of the tax office competent for the taxpayer with information on contracts with non-residents to the repeal of hidden dividend provisions. The proposed amendments are to become effective on 1 January 2023, except for provisions within the scope of establishing Local Files for tax haven transactions, which are to enter into force on the day of their announcement.
User authentication on PUESC
On 30 June 2022, a draft decree of the Minister of Finance on user authentication on the Electronic Services Portal of the Customs Service (PUESC) was published on the Government Legislation Centre’s website. According to the decree, to access their PUESC accounts, users must authenticate themselves by giving their user ID and password via electronic identification means provided by the electronic identification system connected to the National Electronic Identification Node or using a certificate issued to a user of the public mobile application upon authentication. The decree is expected to enter into force on 7 July 2022.
Upcoming changes in terms of certificates issued by tax authorities
On 29 June 2022, a draft decree of the Minister of Finance amending the decree on certificates issued by tax authorities was published on the Government Legislation Centre’s website. The purpose of the amendments is to adjust the existing decree to the changes brought by the Act of 8 June 2022 amending some acts in order to automate the handling of certain matters by the National Revenue Administration, which, inter alia, provides new templates for certificates of no tax arrears or amount of overdue tax (ZAS-W), certificates on the amount of VAT and excise duty turnover, as well as the taxpayer's income in PIT (ZAS-DF), and certificates of taxpayer’s income in CIT (ZAS-DP). The new provisions are expected to enter into force on 7 July 2022.
“Fit for 55” package announced by the EU
On 22 June 2022, the European Parliament adopted its position on three key EU laws that are part of the “Fit for 55 in 2030 package”. MEPs endorsed the plan to accelerate phasing out free allowances under the Emissions Trading System, extend the scope and advance implementation of the new carbon leakage instrument, and to amend the EU Carbon Border Adjustment Mechanism (CBAM). In the case of sectors subject to the proposed carbon border tax, a delay in the withdrawal of the pool of free CO2 emission allowances is being foreseen. The allowances are expected to be withdrawn no earlier than in 2027, yet, already in 2030, the pool of allowances is to get reduced by half and completely phased out by 2032. Moreover, the Parliament agreed with the creation of a Social Climate Fund providing temporary direct income support measures to tackle the increase in road transport and heating fuel prices and supporting investment in buildings renovation, renewable energy, and a shift from private to public transport, car-pooling and car-sharing and active transport such as cycling).
Draft decree on the use of the e-Tax Office utility
On 24 June 2022, a draft decree of the Minister of Finance on the use of the e-Tax Office utility was published on the Government Legislation Centre’s website. The decree has been issued in connection with the Act of 22 June 2022 amending certain laws in order to automate the handling of certain matters by the National Revenue Administration, replacing the Tax Portal with the new e-Tax Office system. New regulations provide for the conditions for using the e-Tax Office, including user authentication method, granting user permissions and the list of matters that can be handled via the new system. The decree is expected to enter into force on 7 July 2022.
Principles of allocating some indirect costs, which the company is unable to assign to the corresponding sources of income, in the case of receiving income in the form of dividends from domestic and foreign companies
In its ruling dated 14 June 2022 (case file II FSK 2643/19), the Supreme Administrative Court held that considering the literal wording of Article 15(2) and (2a), principles of pro rata find no application to revenue subject to lump-taxation according to special principles. As a result, revenue subject to lump-sum taxation should be excluded from calculations to determine the proportionate allocation of indirect costs. Moreover, the taxable base for corporate income tax in the case of dividends from subsidiaries established outside Poland is income, therefore dividend income, despite being possibly exempt under Article 20(3) of the CIT Act, should be taken into account when determining the proportion referred to in Article 15(2) and (2a) of the CIT Act.