KPMG Weekly Tax Review 29 JUL - 05 AUG 2024
AI Act entered into force
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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 2 August 2024, a bill amending the Excise Duty Act was published on the Government Legislation Centre’s website. The bill provides for an increase in the excise duty on tobacco products and their substitutes, extends the excise duty scheme to vaping devices, and introduces one-year validity of excise stamps for electronic cigarette liquids. More (link).
On 29 July 2024, a bill amending the Act on electronic deliveries was added the list of legislative works and policies of the Council of Ministers. The amendment provides for a transitional period ending on 31 December 2025 to enable efficient implementation of the e-Delivery scheme in public bodies. During the transitional period, deliveries made via postal operators, the ePUAP platform, and other domain-specific systems will be treated on an equal basis. The requirement to secure an address for electronic service imposed by the Act on electronic deliveries, however, remains unchanged. During the transitional period, correspondence will be addressed to an electronic delivery address, if the recipient has one.
On 1 August 2024, the European Artificial Intelligence Act (AI Act) entered into force. The AI Act categorizes AI into four different levels, using a risk-based approach. Systems in the “unacceptable risk” category will be banned from the EU, while systems belonging to other risk categories will have to meet relevant standards in terms of transparency and security. The requirements to be met by a system depend on the risk group it has been categorized into. Importantly, under the Act, decisions made using AI can be challenged before the court. The new provisions seek to protect consumers’ rights and provide companies with transparent rules. The AI Act will start to apply two years after entry into force.
Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024
On 5 August 2024, a draft regulation of the Council of Ministers on the statutory minimum wage and the minimum hourly rate in 2025 was published on the Government Legislation Centre’s website. The minimum wage proposed under the draft regulation amounts to PLN 4,626, while the minimum hourly rate is set at PLN 30.20. The minimum wage impacts, inter alia, the amount of fine for fiscal crimes and offenses, as well as the threshold from which an act is qualified as a fiscal crime instead of a fiscal offense. The amounts provided for by the regulation are to become effective on 1 January 2025.
On 31 July 2024, the Ministry of Finance issued a statement on the status of works on introducing autonomous definitions of “building” [Polish: budynek] and “non-building structure” [Polish: budowla] into the Act on local taxes and fees. According to the Ministry, only land, buildings and non-building structures are subject to the real estate tax, while non-building structures are covered by it only when used in business activities. Consequently, landscaping elements, both those related to religious worship and others, being part of garden architecture, are not listed as a subject of tax and are not taxable. The amendments foreseen will not bring any changes in this regard.
According to the judgment of the Supreme Administrative Court rendered on 1 August 2024 in case I FSK 1093/20, in the light of the judgment of the CJEU in case C-895/19, provisions of Article 86(10b)(2)(b) and Article 86(10b)(3), in conjunction with Article 86(10i) of the VAT Act, which make the exercise of the right to deduct value added tax (VAT) in the same accounting period as that in which the VAT is due subject to entry of the VAT due in the tax declaration submitted within a three-month period following the end of the month in which the tax liability arose in relation to the goods acquired are incompatible with the EU law (Articles 167 and 178 of the Directive 112).
According to the judgment of the Supreme Administrative Court delivered on 1 August 2024 in case II FSK 1262/23, in situation of a downstream merger, where the company's majority shareholder changed from indirect to direct, the ownership structure of the company does not materially change. This is why, pursuant to new tax law regulations, the acquiring company has the right to carry forward tax losses from 2017-2018 when calculating the taxable income for 2021 and subsequent years under Article 7(5) of the CIT Act. In this case, Article 7(3)(7) of the CIT Act shall not apply.
According to the judgment of the CJEU rendered on 29 July 2024 in case C-623/22, provisions of the DAC6 Directive that brought the obligation to report tax arrangements are compatible with the EU law. According to the Court, the degree of clarity and precision of the concepts used in these provisions does not call into question the validity of the Directive. The fact that the Directive does not limit the reporting obligation in respect of cross-border arrangements to legal persons does not affect its validity in the light of the principles of equal treatment and non-discrimination, and of Articles 20 and 21 of the Charter of Fundamental Rights.
Another revision of the bill amending the Act on Deposit Return Scheme was published on the Government Legislation Centre’s website. Pursuant to the latest version of the bill, agents will have to operate at least one packaging and waste collection point in each municipality. Collection of milk and dairy product packaging will be excluded from the deposit return scheme. Moreover, there will be an extended transition period for the currently existing deposit return systems ending in 2025 (this mainly relates to beer bottles). In addition, it will be possible to donate reusable packaging at any store, regardless of its size, provided such products are sold there. The effective date of the bill remains unchanged.
Projekt ustawy o zmianie ustawy o gospodarce opakowaniami i odpadami opakowaniowymi
