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Welcome to the next issue of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.

An updated version of the National e-Invoicing System, adjusted to support the FA(2) logical structure, was made available by the Ministry of Finance. Starting from September, businesses using KSeF are only allowed to issue invoices according to the FA(2) structure. The goal of the updates is to facilitate a smooth transition to mandatory e-invoicing scheduled for 01 July 2024. On 1 September 2023, the new logical structure FA(2) replaced the previously used FA(1) logical structure. This means that the FA(2) logical structure must be used throughout the entire period of voluntary KSeF application. 

The Ministry of Finance published tax clarifications dated 29 August 2023 and related to the obligations of personal income tax remitters in the context of twinning programs. The tax clarifications pertain to the method of calculating and collecting tax and its timely payment to the tax authority by PIT remitters who provide cash or non-cash performances to individuals for the implementation of twinning projects. They also contain information on the twinning programs themselves and the tasks to be performed by individuals engaged to implement such programs, including types of performances they should obtain. Moreover, the clarifications contain basic information, systematizing the knowledge of the obligations of personal income tax remitters. 

The European Commission has proposed a new FASTER directive to make excess withholding tax procedures in the EU more efficient. Comparing to the Polish WHT regime, the directive is more advantageous and brings two new simplifying solutions, namely: RSS ( the “relief at source” system) and QRS ( the “quick refund” system). A new materiality threshold of EUR 1,000 will also be introduced. 

On 29 August 2023, the Act amending certain acts to ensure development of the financial market and protect the investors was published in the Polish Journal of Laws. The goal of the Act is to implement assumptions of the Polish Capital Markets Strategy through:

  • removing barriers to access to the financial market and increasing the level of digitization in this market, e.g., in the scope of supervisory duties
  • introducing regulations that will improve the operation and development of the financial market
  • strengthening the protection of customers of financial institutions
  • introducing the obligation to sell bonds to retail clients only through investment companies.

As per the applicable rules, the provisions of the Act are to enter into force 30 days after publication.

A new draft template of the annual lump-sum income tax return, PIT-8AR rev. 13, was published on the website of the Ministry of Finance. The form will apply to tax settlements made by lump-sum income tax remitters for 2023, due until 31 January 2024. Changes to the form are related to, among others: introduction of family foundations, lump-sum taxation of income (revenue) received in connection with using a pan-European individual pension product, and the imposition on remitters of lump-sum income tax on interest on bank accounts and deposits of the obligation to collect interest on tax arrears. Moreover, the Ministry published a new template of a declaration on giving or withdrawing one’s consent to donating 1.5% of tax to a public benefit organization (PIT-OP). Comments regarding new PIT-8AR and PIT-OP forms can be submitted by 13 September to: konsultacje.wzoryPIT@mf.gov.pl

Pursuant to the judgment delivered by the Supreme Administrative Court on 01 September 2023 (case file II FSK 2510/20), insurance services are not similar to guarantee services to such an extent that they are subject to lump-sum tax under Article 21(1)(2a) of the CIT Act. While examining the case, the Court challenged the interpretation of the authority and set aside its cassation appeal. In the reasons for the judgment, the Court noted that even though there are some grounds that could support the statement that insurance services are similar to guarantee services, yet, after a consideration, the Court decided to adhere to the established line of judicial decisions in this area. 

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