KPMG Weekly Tax Review 10 FEB - 17 FEB 2025
Consultation on proposals to align R&D relief with GloBE.
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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 21 February 2025 at 1:30 PM, the Ministry of Finance will hold a consultation meeting on the possible amendments to the R&D relief legislation. The relief scheme is regulated by Article 18d of the CIT Act and Article 26e of the PIT Act. The goal of the consultation meeting is to discuss the possibilities of aligning the relief scheme with new regulations resulting from the introduction of the global minimum tax, effective 1 January 2025. Participation request should be sent by 19 February 2025 to: globalny.minimalny@mf.gov.pl. Due to the limited number of places, the following participant limits apply: two persons per employer or industry organization and one person for other entities.
The European Parliament approved the changes to the ‘VAT in the digital age’ package (ViDA). Businesses are expected to gain savings from lower compliance costs and VAT registration and administrative burdens. The implementation schedule has remained unchanged, meaning that businesses and tax administration in Member States must, by 2030, adjust to the new requirements including: new method of VAT taxation of online platforms, full digitalization of VAT reporting obligations in cross-border transactions, and extension of the One-Stop-Shop system. Additionally, national e-invoicing systems, including the Polish KSeF, are to be gradually adjusted to EU standards by 2035.
On 12 February 2025, the notice of the Minister of Finance dated 7 February 2025 on the list of jurisdictions other than the Republic of Poland that have implemented the qualified income inclusion rule or the qualified domestic minimum top-up tax or meet the requirements to be treated as safe harbours for the purposes of the qualified domestic minimum top-up tax was published in the Polish Official Gazette [Monitor Polski]. According to the notice, 27 states have implemented the qualified income inclusion rule, while the qualified domestic minimum top-up tax has been introduced by 28 states. The requirements to be treated as safe harbours for the purposes of the qualified domestic minimum top-up tax have been met by 28 states. The only state that has not implemented the qualified income inclusion rule, but introduced the two remaining solutions, is Barbados.
On 10 February 2025, during the “Poland. A Year of Breakthrough” conference, the Minister of Finance announced extensive amendments to the tax law. Among the announced changes are an increase in the VAT exemption limit from PLN 200,000 to PLN 240,000, an increase in the limit on contributions to IKZE [Individual Retirement Protection Account], a reduction in the so-called ‘Belka tax’ on capital gains, changes to PPK [Employee Capital Plans], a reduction in tax schemes by removing the obligation to report more than 70% of domestic MDR, removing the requirement to publish tax strategies and a reduction in the copper tax. In addition, the Minister announced that, following the amendments, the initiation of proceedings relating to the suspected commission of a tax offense or a tax crime will not, in principle, affect the tax limitation period, except for the most serious offenses strictly defined in the law.
The Ministry of Finance has launched a review of the Act on statutory auditors, audit companies and public supervision. As part of the review, consultations will be held to analyse the solutions in place from the point of view of their effectiveness and efficiency, considering how they reflect the legal and economic reality. The Ministry is looking forward to receiving comments and proposals for possible amendments to the provisions of the Act on statutory auditors, as well as the provisions of the Accounting Act to the extent they relate to financial audits. Comments can be submitted until 25 April 2025.
According to the statistical data on the opinions on cross-border conversions, mergers and divisions obtained by KPMG, the Head of the National Revenue Administration has, so far, obtained 25 applications for such opinions, and issued 9 corresponding documents. In 8 cases the opinion was denied, while 2 applications were left unexamined. We would like to remind you that the obligation to obtain the opinion of the Head of the National Revenue Administration with regard to conversions, mergers and divisions stems from an amendment to the regulations, which came into force on 15 September 2023.
On 10 February 2025, it was announced that in two instances the Head of the National Revenue Administration denied a clearance opinion. The applications for clearance opinion related to cases of contribution of shares and all rights and obligations in commercial companies held by the founders to the family foundation, the sale of the contributed shares and all rights and obligations in commercial companies by the foundation to an independent investor and the distribution of funds to the foundation's beneficiaries in accordance with the foundation's statutes (Ref: DKP1.8082.4.2024 and DKP1.8082.3.2024). The founders transferred their shares onto the foundation, which allowed them to avoid paying the income tax and solidarity levy, since the transaction has not generated any revenue. The foundation that received these shares also did not have to pay tax. Additionally, the foundation applied a tax exemption to the shares sold, meaning that it did not have to pay the tax on revenue earned. According to the Head of the National Revenue Administration, the primary purpose behind performing the transaction was to obtain a tax benefit. The Foundation acted as an intermediary, since the profit was, from the very beginning, designed to be received by the beneficiaries. In addition, prior to the sale of the shares, the founders did not distribute profits from the company, which suggests that they wanted to take advantage of the tax benefits of the sale. Consequently, the Head of the National Revenue Administration found the transactions to be artificial and denied clearance opinions.
Through the judgment delivered on 7 February 2025 in case I FSK 1566/21, the Supreme Administrative Court confirmed that the VAT exemption referred to in Article 136(a) of Directive 112 and Article 43(1)(2) of the VAT Act is only available when the taxpayer cannot deduct tax due to certain legal restrictions, for example when the sale is exempt from VAT. This means that where the impossibility to deduct the tax results from the fact that the given transaction is simply not subject to VAT or that the taxpayer could have deducted the tax, but they failed to do so, the exemption does not apply. Such an approach is in line with CJEU’s rulings.
According to the judgment delivered by the Supreme Administrative Court on 7 February 2025 in case II FSK 626/22, after 1 January 2021, following the Brexit transition period, a company should account for UK sales revenue for CIT purposes net of UK VAT. Although UK VAT is charged on sales invoices, revenue should be recognized similarly to that earned in Poland. In addition, when calculating deductible costs for CIT purposes, the company should also include costs based on invoices on a net basis.
PIT returns for 2024 can be filed from 15 February to 30 April 2025. Taxpayers' 2024 tax returns, completed on the basis of data held by the National Revenue Administration, can be accessed on the Twój e-PIT portal. Importantly, this year, just as in the previous filing season, the Twój e-PIT portal is also available to individuals running businesses and operating in special branches of agricultural production. The service can also be accessed via the e-Tax Office mobile app. At the same time, we remind you that the form of taxation can still be changed until 20 February. To do so, a CEIDG-1 form must be submitted, via www.biznes.gov.pl or at the municipal office. Opting for the cash PIT scheme can also be declared in writing or online, via e-Tax Office portal.
Rozliczenie PIT za 2024 rok od 15 lutego do 30 kwietnia - Ministerstwo Finansów - Portal Gov.pl
