KPMG Weekly Tax Review 8 MAY - 15 MAY 2023

On 10 May 2023, a draft decree on the rates of fees for single-use plastic products that constitute packaging was published. The goal thereof is to determine the fee per piece of single-use plastic packaging. Consequently, the fee for cups for beverages, including their covers and lids, is to be set at PLN 0.20 and at PLN 0.25 for food containers, including receptacles such as boxes, with or without a cover, used to contain food which is intended for immediate consumption, either on-the-spot or take-away, is typically consumed from the receptacle, and is ready to be consumed without any further preparation, such as cooking, boiling or heating (including food containers used for fast food or other meal ready for immediate consumption, except beverage containers, plates and packets and wrappers containing food).

Following the meeting held on 09-10 May 2023, the Monetary Policy Council declared that the NBP interest rates would remain unchanged. According to the press release, the NBP interest rates are as follows:

• reference rate at 6.75% annually;
• lombard loan interest rate at 7.25% annually;
• deposit rate at 6.25% annually;
• rediscount rate at 6.80% annually;
• discount rate on bills of exchange at 6.85% annually.

On 09 May 2023, the Council of Ministers passed the bill amending the Code of Civil Procedure, the Law on the Common Courts system, the Code of Criminal Procedure, and certain other acts.

The bill brings, inter alia, introduction of e-trials and e-service as a permanent option. Besides, under the bill, lawyers and attorneys-at-law must have an account in the court case information portal. Furthermore, the bill also provides for resumption of prescription period of criminal offenses and execution of sentences in criminal and criminal fiscal cases suspended due to the COVID-19 epidemic.

The bill is now to be submitted before the Sejm. As per the applicable rules, the new regulations are to enter into force 14 days after promulgation.

On 09 May 2023, the Council of Ministers passed the bill amending the Value-Added Tax Act and certain other acts, introducing mandatory use of the National e-Invoicing System (KSeF) from 01 July 2024.

The bill brings a uniform e-invoice standard to:

• simplify the transaction documentation process;
• accelerate and automate document issuing, processing, and archiving;
• enable more efficient document processing;
• provide taxpayers with access to up-to-date information from invoices for management purposes, including analytics, but also for the purposes of other business areas.

Importantly, the bill provides for all-online handling of Binding Tariff Information (BTI), Binding Origin Information (BOI), Binding Excise Information (BEI), and Binding Rate Information (BRI) through extension and adjustment of the already operating systems of the National Revenue Administration.

On 05 May 2023, the Act of 09 March 2023 amending the Act on competition and consumer protection was published in the Polish Journal of Laws.

The amending act supplements the Act on competition and consumer protection (ACCP) with new provisions, inter alia, on prohibited agreements and abuse of a dominant position. Amendments have also been made to provisions on the statute of limitations, penalties imposed on unions of entrepreneurs, and penalties under Article 108 of the ACCP. Moreover, the act brings fines for procedural infringements, calculated in proportion to the worldwide total turnover of companies, and periodic penalty payments. It also brings the leniency program into force. In addition, if the circumstances of the case so require, the President of UOKiK [Polish Office of Competition and Consumer Protection] will be able to apply any measure to interfere with the structure of the undertaking.

New provisions are expected to enter into force on 20 May 2023. 

On 11 May 2023, a raft of clarifying amendments to the Act on the Agriculture Protection Fund was voted through by the Senate. Before the Act is submitted before the President, the Senate's amendments still need to be voted on by the Sejm. The purpose of the Act is to introduce provisions enabling legal regulation of the establishment by entities engaged in the purchase, storage, treatment, processing or further resale of agricultural products of the Agriculture Protection Fund, from which compensation will be paid to agricultural producers selling their agricultural products in the event of insolvency of these entities due to bankruptcy. Contributions in the amount of 0.125% of the net value of agricultural products purchased will be made by agricultural product collectors. First contributions must be made already in Q2 2024, for the period from 01 January to 31 March 2024. 

The judgment of the Supreme Administrative Court dated 05 May 2023 (case file II FSK 2699/20) was delivered in the case of a company planning to use a leased passenger car for own purposes. The company wanted to know whether it was subject to a tax-deductible expense limitation provided for by Article 16(1)(49a) of the CIT Act. According to the Court, Article 16(1)(49a) of the CIT Act directly refers also to cars used under rental contracts. The fact that another provision (Article 16(5c) of the CIT Act) states that the limit referred to in paragraph 1(49a) shall apply to that part of the payment which constitutes the repayment of the value of the passenger car cannot be a basis for assumption that the provisions of Article 16(1)(49a) related to a rental agreement, a hire agreement or another similar agreement are in any way derogated from. Consequently, if the company incurs fees resulting from a lease or rental agreement, the limitation referred to in Article 16(1)(49a) of the CIT Act shall apply.