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

On 12 March 2024, the Ministry of Finance announced that the temporary reduction of VAT rates on basic food products will no longer apply after 31 March 2024. The decision was made based on the recent inflation readings and the forecast changes in prices of basic food products temporarily covered by 0% VAT. According to the flash estimate of GUS (Statistics Poland), in January 2024, inflation dropped to 3.9% (y/y), which means the lowest rate of consumer price growth in this measure since March 2021. Both inflation (y/y) and the rate of food price growth (y/y) are estimated to continue their downward trend in February and March this year.

On 14 March 2024, the Ministry of Finance announced the launch of tax consultation related to the JPK_KR_PD logical structure and a new JPK_ST structure.

The subject of consultation is the JPK_KR_PD logical structure templates and the new JPK_ST structure, which has been separated (from the originally proposed JPK_KR structure) and includes a logical structure template for fixed assets.

The consultation process is open to all interested entities. Opinions - in the form of editable documents - should be submitted via email to: Konsultacje_JPK_KR@mf.gov.pl by 28 March 2024.

Moreover, during the consensus conference, the Finance Ministry indicated that the implementation of the changes regarding JPK_CIT (JPK_KR) reporting will not be delayed and will start in 2025, however, the amount of reportable data will be reduced. 

In the individual ruling dated 8 March 2024 (case file DI/200000/43/224/2024), the Lublin Branch of the Polish Security Administration stated that when determining the accounting basis for contributions, the total revenue generated under a contract of mandate paid in the given month and then reduced by the per diem amount due for the days spent abroad, for which remuneration is paid, must be considered. If the accounting basis for social security contributions determined this way is lower than the projected average monthly wage in the national economy for a given calendar year, it is treated as the calculation basis for contributions. If, however, the amount calculated is lower than the average monthly wage, the accounting basis for the contractor's social security contributions is the said average monthly wage.

On 12 March 2024, the Supreme Administrative Court rendered three important judgments (case files: I FSK 1839/23, I FSK 1840/23, and I FSK 740/22) related to retail sales tax. According to the judgments, the Act on Retail Sales Tax is not written in a precise manner. Consequently, any doubts as to the object of taxation arising out of it should be resolved in taxable persons’ favor. At the same time, the Court noted that the purpose of retail sales tax regulations is to tax sales of goods and cover accompanying services only when such services constitute separate performances with different purpose that only support the sales of goods and do not form a separate real entity in their own right.

The resolution of the Anti-Tax Avoidance Council dated 27 December 2023 has been published. According to the Council, a sequence of transactions consisting of:

  • making a contribution of rights to trademarks to ABC sp. z o.o. S.K.A.,
  • sale by ABC sp. z o.o. S.K.A. of rights to trademarks to Company 1, and
  • conclusion of license agreements between Company 1 and the Party regarding the trademarks

meets the statutory definition of tax avoidance and, at the same time, in the facts presented, there are no conditions preventing the application of Article 119a of the Tax Code to the case, as referred to in Article 119b thereof.

In a press interview of 11 March 2024, the Minister of Finance announced that the Council of Ministers has already prepared a bill amending capital tax (commonly referred to as “Belka’s tax”)

The Ministry of Finance wants to introduce tax exemption of income from deposits with maturities of more than one year corresponding to the value resulting from multiplying PLN 100,000 by the NBP deposit rate in effect on the last day of the third quarter of the year preceding the taxable year. Moreover, the Minister indicated that a personal allowance for investments in stocks, bonds, and investment trusts, which would also be calculated as the product of PLN 100,000 and the deposit rate or its multiplier, would also be provided.

In its judgment dated 13 March 2024 (case file II FSK 762/21), the Supreme Administrative Court ruled that the lump-sum allowance paid to an employee for using their private car for work-related purposes, namely, local transportation, shall be treated as PIT-taxable revenue and is not covered by the exemption provided for by Article 21(1)(23a) of the PIT Act, since the employer’s payment obligation does not result directly from provisions of other acts.

According to the judgment rendered by the Supreme Administrative Court on 12 March 2024 (case file II FSK 759/21), expenses incurred to organize team-building meetings with persons that provide the company with services within the frames of the business activities they pursue (under a B2B contract) cannot be treated as tax-deductible costs.

On 12 March 2024, the Council of the Ministers adopted the bill amending the National Revenue Administration Act and certain other acts.

The bill adopts Polish law to EU regulations on obligations for importers of tin, tantalum, tungsten (and their ores), and gold. This relates to “conflict minerals” originating from conflict-affected and high-risk areas.

The proposed measures are to enter into force 14 days after publication in the Polish Journal of Laws.

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