It is 5 September 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:
- Clearance opinion on transforming a limited liability company into a general partnership
- Extension of selected deadlines for remitters to meet their obligations in terms of lump-sum income tax
- Draft decree of the Minister of Finance amending the decree on the National e-Invoicing System
- Inheritance and donation tax: new exemption thresholds, tax-free amounts, and tax scales
- Increased thresholds for submitting simplified INTRASTAT declarations
- New services of the e-Tax Office
Clearance opinion on transforming a limited liability company into a general partnership
On 30 August 2022, a clearance opinion dated 03 June 2022 (case file DKP2.8011.44.2021) on transforming two limited liability companies operating within the same group into general partnerships was published. The key purpose of the transaction was to raise the entities’ credit score, improve flexibility in financing activities and avoid an increase in the operating costs thereof. According to the Head of the National Revenue Administration, the above-described activities can bring a tax benefit, which, however, is not the primary or one of the primary purposes behind performing them, nor does it go against the subject or purpose of tax law or its provision, and the action described by the applicant would not be deemed of artificial character. Consequently, Article 119(1) of the Tax Code finds no application.
Extension of selected deadlines for remitters to meet their obligations in terms of lump-sum income tax
On 31 August 2022, the decree of the Minister of Finance on extension of selected deadlines for remitters to meet their obligations in terms of lump-sum income tax entered into force. The decree extends the validity of the original statement exempting the remitter from the obligation to apply the pay and refund mechanism to WHT (Article 26(7f) of the CIT Act and Article 41(20) of the PIT Act) until the end of the remitter’s tax year, instead of two supplementary two months, as well as the deadline for submitting the follow-up statement (Article 26(7g) of the CIT Act and Article 41(21) of the PIT Act) until the end of month following the end of the remitter’s tax year instead the seventh day of the month following the expiry of validity of the original statement, as currently applicable.
Draft decree of the Minister of Finance amending the decree on the National e-Invoicing System
On 30 August 2022, a draft decree of the Minister of Finance amending the decree on the National e-Invoicing System was published on the Government Legislation Centre’s website. The amendments introduced reflect the need to adjust the rules of using the System to the specific character of local government units, as well as changes concerning the recognition of a VAT group as a VAT taxpayer, in place of its individual members. The decree is to enter into force 14 days after its promulgation.
Inheritance and donation tax: new exemption thresholds, tax-free amounts, and tax scales
On 29 August 2022, a draft decree of the Minister of Finance on determining the value of items and property rights that are free of or exempt from inheritance and donation tax and the tax scales according to which this tax is calculated was made available. The draft provides for a number of changes. Inter alia, it sets the threshold on acquisitions of money or other tangible property by a person classified in tax group 1 at an amount not exceeding PLN 10,434 from a single donor and PLN 20,868 from a number of donors jointly. Moreover, it determines net amounts of acquired items and property rights excluded from taxation and new tax scales. The draft decree is currently being assessed. The new provisions are expected to enter into force next day after they are announced.
Increased thresholds for submitting simplified INTRASTAT declarations
On 29 August 2022, a draft decree of the Minister of Finance amending the decree on submitting INTRASTAT declarations was published. The key amendments it brings relate to altering limitations with respect to imports and exports of goods made in a single reporting period from or to another Member State, which can be included jointly under a single item of the INTRASTAT declaration. Under the current provisions, the total value of such transactions must be equal to or below EUR 200, however, the Ministry intends to raise this threshold to EUR 1,000. The purpose behind the amendments is to adjust the decree to changes made to EU regulations on business statistics.
New services of the e-Tax Office
On 1 September 2022, the Ministry of Finance announced that the e-Tax Office application can now be used to submit a power of attorney to sign returns submitted by means of electronic communications (UPL-1) and a notice of revoking such an authorization (OPL-1). The notices may be submitted in person or on behalf of another individual or entity, provided that the user acts as a professional agent (attorney at law, legal or tax advisor). General attorneys may use the e-Tax Office to access the list of their principals, they may also submit letters on their behalf, without the need to complete the identification and address data of the principal. The same simplifications have been made available for ZAP-3 forms.