KPMG Weekly Tax Review 29 MAY - 05 JUN 2023

At a sitting held on 24-26 May 2023, the Lower House of the Polish Parliament adopted the Act amending the Value-Added Tax Act and certain other acts, bringing a package of simplifications to the VAT regime, commonly referred to as SLIM VAT 3, and the Act amending the Act on Real Estate Trading and Management and certain other acts, amending principles of charging of capital duty on civil law transactions consisting in the purchase of real estate.

The SLIM VAT 3 package, inter alia, increases the sales threshold for small taxpayers from EUR 1.2 million to 2 million, reduces formalities in international trade, relaxes VAT refund rules for cashless taxpayers and changes the date on which submitting income tax JPK [SAF-T] files becomes obligatory. Under the Act, inheritance and donation tax thresholds are also to increase. The Act has already been signed by the President into law and is soon to be published in the Polish Journal of Laws. New provisions are expected to enter into force on 01 July 2023. In turn, the Act amending the Act on Real Estate Trading and Management and certain other acts provides for a new model of payment for land sold to perpetual usufructuaries as well as introduction of a 6% capital duty (PCC) rate on the purchase of the sixth and subsequent residential premises (purchased in one or more buildings erected on a single plot of land). Importantly, under the Act, purchase of the first apartment will be exempt from capital duty. The Act is now to be referred to the Senate. As per the applicable rules, new provisions will enter into force 30 days after promulgation. 

At a sitting held on 24-26 May 2023, the Lower House of the Polish Parliament adopted the Act on supporting benefits. During the committee work, an amendment was submitted to extend the possibility of taking advantage of reduced social security contributions for additional 12 months, under the “Mały ZUS Plus” program. It will be available to employers who, for at least one month in 2023, paid social security contributions on such terms. The Act is now to be referred to the Senate. 

On 25 May 2023, it was announced that on 28 April 2023, the Head of the National Revenue Administration (NRA) issued a clearance opinion (case file DKP1.8082.7.2022) on company merger through acquisition and whether it gives rise to tax revenue for the acquiring company.

According to the Head of NRA, the above-described activity can bring a tax benefit, which, however, is not the primary or one of the primary purposes behind performing it. It was also noted that there were no reasons to assume that the tax benefits indicated in the application would be contrary to the subject or purpose of tax law or any of its provisions. Furthermore, the presented description of the planned activity gives no ground for identifying the statutory premises of the artificial mode of operation.

On 29 May 2023, a panel of seven judges of the Supreme Administrative Court adopted two important resolutions. In the first resolution (case file I FPS 1/23), it was stated that performance of any additional VAT liability cannot be secured by a decision issued under Article 33 of the Polish Tax Ordinance.

In the second one (case file I FPS 2/23), the Court refrained from examining whether “the wording “in the tax case indicated or another indicated case falling within the competence of a tax authority” used in Article 138e(1) of the Tax Ordinance of 29 August 1997 (Journal of Laws of 2019, item 900, as amended) should be understood as “in specific tax proceedings before tax authorities” or “on specifying the mutual rights and obligations of the parties to the relationship, which are the tax authority and an individual entity”.

The Court stated that the reply to the above-quoted inquiry has been already given by the resolution of April 2022 (case file II FPS 1/22). This means no modifications to the requirement to submit a special power of attorney to the case files in each proceeding. 

In its judgment dated 29 May 2023 (case file II FSK 1093/22), the Supreme Administrative Curt stated that the value of fringe benefits granted to a contractor conducting business activity on top of remuneration and resulting from the same legal relationship should be treated as part of the contractor’s revenue.

The fact that the principal covers the costs of the benefits in question or grants the contractor funds in this respect does not mean that they are not part of the remuneration for the service, which could not be provided without such fringe benefits. 

On 29 May 2023, a draft regulation of the Minister of Finance on the use of the e-Tax Office utility was published on the Government Legislation Centre’s website.

Under the regulation, the existing provisions will be adjusted to reflect the upcoming implementation of e-Tax Office accounts for organizational units. Applications to access organizational unit accounts can be submitted by legal entities and other organizational units holding a NIP [Polish Tax Identification Number].

Providing organizational units with accounts in the e-Tax Office will entail granting such users the right to access legally protected data, including those covered by fiscal secrecy and concerning an organizational unit.

The regulation is expected to enter into force on 15 June 2023.

2022 CIT-8 return generator is now available on the Ministry of Finance’s website. Unlike in previous years, no interactive form is available, and the return must be completed online.

A draft return can be saved as an XML file for further editing.