KPMG Weekly Tax Review 22 APR - 28 APR 2025

On 22 April 2025, the Head of the National Revenue Administration signed the 15th Cooperation Compliance Agreement. The group of Program beneficiaries was joined by CANPACK S.A. The Cooperative Compliance Program enables close and ongoing cooperation between a taxpayer and the Head of the National Revenue Administration. The Cooperative Compliance Program is intended for business entities with revenue of above EUR 50 million. Services rendered by the National Revenue Administration are tailored to each taxpayer’s individual needs. The taxpayer essentially conducts a self-audit of their accounts, while the tax administration oversees the taxpayer's internal control mechanisms.

For more information on the Cooperative Compliance Program

On 18 April 2025, preliminary remarks to the bill amending the Act on National Revenue Administration and the VAT Act were added to the list of legislative works and policies of the Council of Ministers. The bill introduces solutions enabling, inter alia: correcting a return after a customs and fiscal audit has been completed, filing a return within 14 days from the date of initiation of a customs and fiscal audit, filing a return after the completion of a customs and fiscal audit, and introducing an amendment to the VAT Act adjusting it to the amendments made to the National Revenue Administration Act. The bill is anticipated to be approved by the Council of Ministers in the third quarter of 2025.

Projekt ustawy o zmianie ustawy o Krajowej Administracji Skarbowej oraz ustawy o podatku od towarów i usług

On 15 April 2025, the European Commission announced via its website that it is providing further simplifications and reducing the administrative burden to facilitate the implementation of Regulation (EU) 2023/1115 of the European Parliament and of the Council on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation (EUDR). The key amendments brought by the European Commission include reducing the number of due diligence statements (DDS) that companies need to file for recurring deliveries of goods, as well as addressing stakeholders' request for guidance on specific categories of products covered by the EUDR. At the same time, the Commission confirmed that the Regulation will become effective on 30 December 2025 – for large and medium-sized enterprises – and on 30 June 2026 – for other entities.

The deadline for submitting personal income tax returns for 2024 is 30 April 2025. Until this date, taxpayers can review, amend, or approve their returns using Your e-PIT portal. If taxpayers do not submit their own PIT-37 and PIT-38 returns, the pre-filled returns be automatically accepted on 30 April. This ensures that the tax return is filed on time, even if no action is taken by the taxpayer. However, for entrepreneurs (filing PIT-36, PIT-36L, or PIT-28 returns) or individuals declaring income from rental (PIT-28), it is the taxpayer's responsibility to submit their return via the Your e-PIT portal. It is important to note that missing the deadline is generally considered a criminal offense, subject to penalties. Nonetheless, liability can be avoided by making a voluntary disclosure (as per Articles 16 and 16a of the Fiscal Penal Code). This involves filing the annual tax return after the deadline and informing the tax office of the reasons for the delay before they become aware of the issue. In contrast, when correcting a previously submitted return, notification of the error or the reasons for it is not required. However, if the correction results in an underpayment of tax, it is crucial to settle the outstanding amount promptly. One reason for needing to correct a return might be the incorrect determination by an entrepreneur of tax-deductible costs, which reduce taxable income, or the improper identification of the tax point.

On 23 April 2025, the Supreme Administrative Court examined case I FSK 2150/21 involving a power of attorney granted by the seller of a property to the prospective purchaser, authorizing the latter to act on the seller's behalf in making modifications to the property to suit the purchaser's requirements. In the view of the Supreme Administrative Court, such activities cannot be considered characteristic of a person engaged in the business of real estate trading, and therefore, the transaction is not subject to VAT. Furthermore, the Court highlighted that the circumstances of the case differ from those of case C-213/24 (Grzera), in which judgment was rendered by the Court of Justice of the European Union (CJEU) and thus, the CJEU's judgment should not be applicable.

According to the judgment of the Supreme Administrative Court delivered on 23 April 2025 in case II FSK 959/22, expenses in the form of grid connection fee are excluded from the list of expenses treated as costs of producing a fixed asset, as referred to in Article 16g(4) of the CIT Act. This type of expenditure is intended to secure the future energy supply to the building. Consequently, these expenses are associated with the potential use of the property for business purposes. As a result, the costs incurred for grid connections should be classified as tax-deductible expenses under the general provisions outlined in Article 15(1) of the CIT Act. As a matter of fact, such charges should be regarded as indirect costs related to operational activities.

On 16 April 2025, the Supreme Administrative Court ruled in case II FSK 973/22 that Article 16(1)(22) of the CIT Act, which outlines exclusions from tax-deductible costs, does not apply to all contractual penalties; it is limited to penalties related to defects in delivered goods and services (including delays in rectifying such defects or delivering goods or services free of defects). Therefore, a contractual penalty paid by a company for a delay in the performance of construction works is not subject to this exclusion and can be considered a tax-deductible cost, provided the general conditions under Article 15(1) of the CIT Act are satisfied.

On 22 April 2025, the judgment of the CJEU on board members’ liability was published (case C-277/24 Adjak). It was issued in reply to the requests for preliminary ruling made by the Provincial Administrative Court in Wrocław. According to the CJEU judgment, during proceedings concerning the liability of a board member for tax arrears, the individual must have (i) a genuine opportunity to challenge the findings contained in the tax assessment decision issued against the company and (ii) access to the file in the main proceedings. The publication of the judgment initiates the deadlines for reopening tax proceedings (applications must be submitted by 22 May 2025) and administrative court proceedings (complaints must be filed by 22 July 2025). In both instances, it is the responsibility of the board member to initiate proceedings to overturn any unfavourable legal decisions. Another CJEU judgment concerning the liability of board members for tax arrears is expected on 30 April 2025 (Case C-278/24 Genzyński).

On 25 April 2025, preliminary remarks to the bill amending the CIT Act were added to the list of legislative work and policies of the Council of Ministers.

The core proposal in the bill is the repeal of Article 27c of the CIT Act, which would remove the requirement for the largest CIT taxpayers to publish information about their tax strategies.

According to information on the Chancellery of the Prime Minister's website, the bill is part of the government's Deregulation Team commitments and fulfils Pillar VI: "Support for Business and Deregulation" of the 2025 economic plan "Poland: Year of Transformation." This plan aims to eliminate unnecessary administrative procedures, reduce business operation costs, and enhance the transparency of the tax system.

Projekt ustawy o zmianie ustawy o podatku dochodowym od osób prawnych - Kancelaria Prezesa Rady Ministrów