KPMG Weekly Tax Review 23 DEC 2024 - 07 JAN 2025

Amendments to the way health insurance contributions for entrepreneurs are calculated came into effect. From 1 January 2025, gainful disposal of fixed asset by entrepreneurs does not increase the accounting basis for their health insurance contributions. Furthermore, the minimum accounting basis for health insurance contributions paid by entrepreneurs has been reduced to 75% of the minimum wage. If an entrepreneur opts to include income from asset disposal (along with the corresponding tax-deductible costs) in the calculation basis for the health insurance contribution, then for the sale of such fixed assets in 2025—where depreciation write-offs were considered tax-deductible costs before 1 January 2022—Article 24(2), sentence 2 of the Personal Income Tax Act will be applied when calculating income, thus allowing for application of Article 35 of the Act of 9 February 2022 amending the Polish Code of Commercial Partnerships and Companies and certain other acts, pursuant to which ‘income determined with due regard to the second sentence of Article 24(2) of the Personal Income Tax Act shall not be increased by depreciation write-offs...’.

Dziennik Ustaw 2024 r. poz. 1915

On 19 December 2024, the Supreme Administrative Court delivered judgment in case II FSK 409/22, according to which Article 16(1)(22) of the CIT Act should be interpreted narrowly as excluding the possibility of recognizing contractual penalties and damages expressly indicated in the provision in question as tax-deductible costs. This relates to economic events that result from the defectiveness of goods or works that are the subject of the business activity. This means that any defect serves as a basis for excluding expenses incurred from tax-deductible costs. This means that the contractual penalty to which the present case relates, i.e., penalty for failure to provide the service on time, does not fall within this exclusion.

The Minister of Finance published new regulations on the list of countries and territories applying harmful PIT and CIT competition. The updated list includes 25 countries and territories, with the Principality of Andorra having been removed.

Income tax regulations against harmful tax practices apply to the listed jurisdictions. 

The full list of countries and territories covered forms a Schedule to the regulations that can be accessed at:

• rozporządzenie Ministra Finansów z 18 grudnia 2024 r. w sprawie określenia krajów i terytoriów stosujących szkodliwą konkurencję podatkową w zakresie podatku dochodowego od osób prawnych
• rozporządzenie Ministra Finansów z 18 grudnia 2024 r. w sprawie określenia krajów i terytoriów stosujących szkodliwą konkurencję podatkową w zakresie podatku dochodowego od osób fizycznych

The regulations entered into force on 1 January 2025.

According to the notice issued by Statistics Poland, entrepreneurs engaged in trade with EU states must consider amendments to the INTRASTAT statistical thresholds. One of the most important amendments consists in reducing the basic threshold for arrivals to PLN 6,000,000, with maintaining the existing basic threshold for dispatches (PLN 2,800,000). Reduction of the basic threshold for arrivals means that the number of entities under reporting obligation can increase.

Wysokości progów statystycznych na 2025 r. w systemie INTRASTAT

On 27 December 2024, a general ruling of the Minister of Finance dated 24 December 2024, regarding the qualification of operating lease contracts in accordance with tax arrangement regulations, was published (case file DTS5.8092.4.2024). According to the Minister, such contracts often rely on standard templates and, as a result, may meet the generic hallmarks of a tax arrangement. However, to classify them as tax arrangements, the main benefit test must be satisfied, meaning the contract must be entered into primarily to achieve a tax benefit. As a party to the contract, the lessee is responsible for reporting it if the agreement meets these criteria. Additionally, operating lease contracts may be considered tax arrangements if they are entered into between related parties or if the fees exceed certain limits. However, there are exceptions to the reporting obligation.

Interpretacja Ogólna Nr DTS5.8092.4.2024 Ministra Finansów z dnia 24 grudnia 2024 r. w sprawie kwalifikacji umów leasingu operacyjnego na gruncie przepisów o schematach podatkowych - Ministerstwo Finansów - Portal Gov.pl

In 2025, the deadline for self-employed individuals to file information on real estate and works (IN-1) has not been extended. According to the regulations, individuals must submit the information within 14 days from the date of circumstances that justify the creation or expiration of real estate tax obligation, or from the date of an event affecting the amount of taxation. This means that self-employed individuals do not need to file IN-1 if they have not been affected by the new real estate tax rules. However, if they have been affected, taxpayers have to submit the information until January 15.

As a result of the implementation of EU Directive 2022/542, brought by way of amendments to the VAT Act and certain other acts, effective as of 8 November 2024, the place of supply for services of admission to cultural, artistic, sports, scientific, educational, entertainment, or similar events that are broadcast or otherwise made available virtually, such as fairs or exhibitions, has changed for tax purposes starting 1 January 2025. The place of supply of these services is now determined according to the general rules outlined in Article 44 of the VAT Directive and Article 28b of the VAT Act. Generally, this means that tax will be payable at the location where the recipient of the service has established their place of business. If the recipient of such a service is a consumer, the place of taxation will be the location of their registered office, permanent place of residence, or usual place of abode.