KPMG Weekly Tax Review 19 AUG - 26 AUG 2024
Regulation on JPK_CIT signed by Minister of Finance.
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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 16 August 2024, the Ministry of Finance provided a response to parliamentary inquiry no. 4181 on the unlawful operation of the National Revenue Information Service. It confirmed that conceptual works are underway, aimed at amending the Polish Tax Code provisions to settle the issue of rendering tax rulings that would also cover provisions of non-tax acts.
https://www.sejm.gov.pl/sejm10.nsf/interpelacja.xsp?documentId=858D7ACE3809216DC1258B6B004964A1
The Ministry of Finance presented its stance on the inquiry made by the Commissioner for Human Rights regarding the possibility for Polish citizens to exercise their rights in connection with tax rulings affected by a qualified legal defect. The Ministry of Finance replied that the wording of the provision of Article 249(1)(1) of the Polish Tax Code, providing for a five-year limit for instituting proceedings involving invalidation of a final decision, after which launching of such proceedings becomes impossible, does not affect the taxpayer's ability to exercise their subjective rights, i.e., the right to a fair trial and the right to receive compensation for the unlawful action of a public authority. Consequently, the Ministry does not see any need to amend that provision.
https://bip.brpo.gov.pl/pl/content/rpo-wadliwa-decyzja-podatkowa-weryfikacja-mf-odpowiedz
On 16 August 2024, a draft regulation on the release from the obligation to keep sales records using cash registers was published on the Government Legislation Centre’s website. The scope of the release is to get extended for two years (2025-2026), with the sales value condition remaining unchanged and amounting to PLN 20,000 for entities continuing their business activities and entities starting their business (in this case calculated pro rata). The release pertains to deliveries of goods enumerated in the regulation, such as hemp or coal, briquette and similar fuels, as well as provisions of certain services, such as car and other vehicle parking. Importantly, cash registers must be used to record sales of goods and services using automated sales tools, excluding sales of tickets for public mass transit services. The exemption for delivery of goods and services using automated sales tools, as well as car and other vehicle parking services is to last until 31 December 2025.
https://legislacja.rcl.gov.pl/projekt/12388405/katalog/13075910
On 16 August 2024, the Terms of Reference (ToR) of the Framework Convention on International Tax Cooperation were adopted. The ToR vote resulted in 110 UN countries in favour, eight against, and 44 abstaining, including Poland and other EU countries. The ToR will be presented to the UN General Assembly for vote during its session which begins in September 2024. If adopted, the ToR provide for the Framework Convention, including two special protocols, to be developed in the next three years by a designated Committee. The UN framework convention should, among other things, establish an inclusive, fair, transparent, efficient, equitable and effective international tax system.
On 16 August 2024, the Minister of Finance singed the regulation on additional data to be included in ledgers transferable under the Corporate Income Tax Act. Compared to the draft issued in the beginning of August, the revision signed by the Minister provides for the requirement to transfer the record of tangible and intangible assets (JPK_ST_KR) already in the first year of the operation of the new provisions. This means that the largest taxable entities (with turnover exceeding EUR 50 million annually and tax corporate groups) for which the taxable year starts after 31 December 2024 will have to provide a report already for 2025, covering:
- JPK_KR_PD (including, first and foremost a trial balance, account records and tax tags identifying the way given operation was recorded for CIT purposes) and
- JPK_ST_KR (record of tangible and intangible assets including specified data).
The provisions on JPK_CIT, including the material regulation, enter into force on 1 January 2025.
Last week, the Council of Ministers passed a bill amending the Act on posting of drivers in road transport and certain other acts. The amending bill seeks to strengthen the protection of Polish road carriers against unfair and unequal competition from non-EU countries. The key solutions brought by the bill include accelerated entry into force of the provisions on the electronic control of foreign permits via system for monitoring road and rail transportation of goods and the circulation of heating fuels (System for Electronic Transport Supervision, abbreviated as SENT). The solution is aimed at foreign carriers engaged in international road transportation of goods.
By its ruling dated 20 August 2024, case file II FSK 1480/21, the Supreme Administrative Court held that the notion of dividends brought by Article 30f(5)(1) of the PIT Act covers monetary and/or non-monetary performances received by the founder of the foundation from that foundation, if it operates as CFC. If dividends were considered to apply only to distributions of profits of companies, this would lead to unacceptable consequences, such as double taxation of these performances for taxpayers earning income from foreign foundations.
The Ministry of Finance issued a notice by which it confirmed that it does not work on introducing any new tax levies on photovoltaic farms and installations. The bill amending the Act on local taxes and fees is to keep the current method of taxation, i.e., the tax is not to cover photovoltaic farms and installations as a whole, but only their construction elements (supporting structures). Indeed, photovoltaic farms neither currently nor in the proposed bill are listed as an object of real estate tax.
