KPMG Weekly Tax Review 21 OCT - 28 OCT 2024
Clearance opinion on division by spin-off for gainful disposal of shares in divided company.
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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 24 October 2024, the EUREKA Tax and Customs Information Service website published a tax clearance opinion, originally issued on 7 October 2024, regarding a company’s division by spin-off and gainful disposal of shares in the divided company. The Head of the National Revenue Administration identified a tax benefit in the form of avoiding, among other liabilities, civil law transaction tax, CIT, and PIT. However, it was determined that this benefit would not constitute the primary or one of the primary purposes of the planned activity. As a result, the Head of the National Revenue Administration issued a clearance opinion.
On 23 October 2024, a draft regulation of the Minister of Finance on exempting certain goods from the obligation to be labeled with excise markings was published on the Government Legislation Centre’s website. The draft regulation extends by another two years, i.e., until 31 December 2026, the exemption from the obligation to label certain excise duty goods, such as beer, ethyl alcohol and other alcohol products of any strength, with excise duty stamps. Furthermore, the proposed regulation keeps in force the exemption from the requirement to label cigars and cigarillos with excise duty stamps if they were placed on sale before 20 May 2024, with this exemption remaining in effect until 20 May 2026.
On 23 October 2024, a bill amending the Act on Tax Advisory was published on the Government Legislation Centre’s website. The bill introduces a broad range of amendments affecting the tax advisory profession. Key changes include expanding the types of cases in which tax advisors may provide opinions and explanations, granting new powers to the National Chamber of Tax Advisors' bodies — such as authorizing the National Council of Tax Advisors to publish a register of practicing tax advisors — streamlining disciplinary proceedings, and revising the tax advisor examination process.
On 21 October 2024, the bill amending the Act on Packaging and Packaging Waste, introducing the deposit-refund scheme, was submitted before the Council of Ministers. The latest revision of the bill provides for a self-amendment postponing the entry into force of the system by 6 months, i.e. until 1 July 2025.
On 23 October 2024, a new Binding Tariff Information dated 11 October 2024 (id:0111-KDSB2-2.440.266.2024.1.MCZ) regarding VAT rate on a ready-to-eat frozen meals was published on the EUREKA Tax and Customs Information Service website. According to the Director of the National Revenue Information Service, since the product to which the application relates falls under Chapter 19 of the Combined Nomenclature (CN), its supply, import or intra-Community acquisition shall be taxed at a 5% VAT in line with Article 41(2a) of the VAT Act, in conjunction with item 12 of the Schedule 10 thereto.
Tax Foundation, an independent tax policy nonprofit, published the annual International Tax Competitiveness Index (ITCI), in which Poland ranked 31st. The ITCI seeks to measure the extent to which a country’s tax system adheres to two important aspects of tax policy: competitiveness and neutrality.
2024 International Tax Competitiveness Index | Tax Foundation
A regulation of the Minister of Finance dated 9 October 2024 on models of a special power of attorney and a power of attorney for service, along with templates for notice of changing, revoking or terminating such powers attorney was published on the Government Legislation Centre’s website. New templates were introduced because of amendments to the Act on electronic deliveries.
On 21 October 2024, the Supreme Administrative Court adopted a resolution pursuant to which, Article 119zzh(1) of the Tax Code of 29 August 1997 (Journal of Laws of 2020, item 1325, as amended) shall serve as a basis for imposing a fine for failure to meet the deadline to provide information on accounts of qualified entities, statements of transactions and information on other accounts as per Article 119zp(1 and 2) of the Tax Code or data referred to in Article 119zs(2) thereof.
On 21 October 2024, having examined a legal issue put forward by the Public Prosecutor General, a bench of seven judges of the Polish Supreme Administrative Court (SAC) adopted a resolution (case file III FPS 2/24), pursuant to which, buildings classified as residential buildings in the land and building register, intended for lease in the course of the real estate taxpayer's (lessor's) business activity are to be treated as residential buildings or parts thereof, to the extent that they serve the housing needs of the lessees. This means that if a company, which owns an apartment, rents it to an individual who will live in it, such an apartment is subject to a lower property tax rate, rather than the one provided for a business.
