KPMG Weekly Tax Review 31 MAR - 07 APR 2025
NBP interest rates to remain unchanged.
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Welcome to the next issue of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.
During the sitting of the Lower House of the Polish Parliament held on 4 April 2025, the Act amending the Act on Healthcare Services Financed from Public Funds and Certain other Acts was passed. Its goal is to clarify and simplify the rules of settling health insurance contributions for business owners as well as decreasing the minimum contribution accounting basis for those settling PIT and flat PIT to 75% of the minimum wage. The amendments are expected to enter into force on 1 January 2026.
At the same session, the Act amending the Act on Foreigners and Certain other Acts was passed. It seeks to implement the provisions of Directive 2021/1883/EU and adopt legal solutions concerning the entry, rights and granting of residence permits for the employment of foreigners in professions which require high qualifications. Both acts are now to be referred to the Upper House of the Polish Parliament.
Furthermore, the Sejm assessed the amendments of the Senate to the Act amending the Polish Tax Code and Certain other Acts, which adjusts the Polish law to two judgments by the Court of Justice of the European Union (CJEU) and provides for, inter alia, the possibility of sending a letter to an office at any postal operator, and not, as until now, only through the Polish Post Office, in tax and administrative proceedings. The Act now moves to the President.
Druk nr 838 – Sejm Rzeczypospolitej Polskiej
On 3 April 2025, a draft regulation of the Minister of Finance setting forth new rules for keeping books of account and records of tangible and intangible assets was published. Businesses will have to include additional data in their books, such as: Counterparties’ NIPs [Polish Tax Identification Numbers], National e-Invoicing System invoice number, data confirming the acquisition or removal of a tangible or intangible asset from the records, as well as any differences between financial results and operating income. Additionally, the records must include information on acquisition, production or removal of a tangible or intangible asset from the register as well as document identifiers and dates of relevant operations. The draft is currently under public consultation, with the new regulations expected to enter into force on 1 January 2026. Additionally, on 2 April 2025, a draft regulation bringing changes to the method of keeping revenue registry and the list of tangible and intangible assets was published. The key amendment brought consists in introducing the obligation to keep such records with the use of dedicated software.
During the meeting of the Monetary Policy Council held on 1 - 4 April 2025, it was decided to keep the NBP interest rates unchanged:
- reference rate at 5.75% annually
- lombard loan interest rate at 6.25% annually
- deposit rate at 5.25% annually
- rediscount rate at 5.80% annually
- discount rate on bills of exchange at 5.85% annually.
Interest rates affect, among other things, the amount of interest on tax arrears (which continues to amount to 14.5% on an annual basis), as well as the limit of notional costs of external financing, and a reduction in the amount of tax liability in the event of payment of VAT in full from a VAT account earlier than the deadline for paying the tax.
Komunikat prasowy z posiedzenia Rady Polityki Pieniężnej w dniach 1-2 kwietnia 2025 r.
On 2 April 2025, President Trump issued an executive order to implement new tariffs on goods imported from certain countries. It imposes a global 10% tariff on imports from essentially all US trading partners as well as country-specific rates, such as 20% for the entire EU and 34% for China. Additionally, on 3 April, 25% tariffs on vehicles imported to the US started to apply. It is also planned to place tariffs on some auto parts such as engines and transmissions, no later than May 3. The changes implemented by President Trump are set to have a considerable impact on EU exporters, including Polish companies that supply automotive parts, machinery, furniture, and food products. This is due to increased costs leading to a reduction in the competitiveness of European goods in the US market. Conversely, the anticipated response from Brussels could not only affect companies importing goods from the US but also further intensify trade tensions.
On 1 April 2025, a clearance opinion dated 10 March 2025 (case file DKP1.8082.2.2024) on restructuring activities performed by a company using the lump-sum tax on corporate revenue scheme (the Estonian CIT) was published. The application for a clearance opinion related to a set of planned and interconnected activities. According to the Head of the National Revenue Administration, while a tax benefit in the form of tax neutrality for participants in a division by spin-off and the deferral of income taxation until the actual distribution of income under the flat-rate tax on corporate income scheme can be identified, the arguments presented by the applicants—such as the intention to spin off a separate entity and prepare for changes in the character of the area where the parties' current facilities are located—indicate that obtaining a tax benefit was not the primary or one of the primary purposes of the transaction. Furthermore, the approach taken is not considered artificial, and the tax benefits outlined in the application do not conflict with the intent or purpose of tax law or any of its provisions. Consequently, Article 119a(1) of the Tax Code finds no application to the tax benefit resulting from the activities performed and presented by the applicant and the Head of the National Revenue Administration issued a clearance opinion.
On 1 April 2025, a clearance opinion dated 7 March 2025 (case file DKP16.8082.13.2024) on share swapping within the meaning of Article 24(8a) of the PIT Act and 12(4d) of the CIT Act was published. The activity under examination consisted in contributing shares of Company 2 to Company 1 and taking up shares in the increased share capital of Company 2 in return, i.e., share swapping. According to the Head of the National Revenue Administration, while a tax benefit in the form of tax neutrality in PIT and CIT can be identified, it does not contradict the intent or purpose of tax law or any of its provisions. Furthermore, obtaining a tax benefit was not one of the primary objectives of the actions taken; the main intention of the family members was to pursue succession, holding, and investment goals. Additionally, the approach adopted is not considered artificial. Consequently, Article 119a(1) of the Tax Code finds no application to the tax benefit resulting from the activities performed and presented by the applicant and the Head of the National Revenue Administration issued a clearance opinion.
On 27 March 2025, the National Chamber of Tax Advisors published its opinion on amendments to the R&D tax relief scheme resulting from implementation of the global minimum tax. The opinion has been submitted before the Minister of Finance. The Chamber's main postulates are the necessity to maintain the tax neutrality of the R&D relief, flexibility in the choice of the method of accounting for the relief (a minimum of two variants of accounting for the relief), opposition to a uniform amount limit - introduction of a proportional mechanism that would take into account the actual expenditures incurred on R&D activity. In addition, the opinion includes comments on the proposed division of the R&D relief into two components.
Opinia KRDP na temat zmian ulgi B+R w związku z implementacją globalnego podatku minimalnego
According to the judgment of the CJEU delivered on 3 April 2025 in case C-164/24, EU regulations (the first subparagraph of Article 213(1) and Article 273 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax), and the principles of legal certainty and of proportionality must be interpreted as precluding national legislation which provides for the possibility for the competent tax authority to remove a taxable person from the value added tax (VAT) register on the ground of a failure to comply with VAT obligations on that taxable person’s part, without that tax authority analysing the nature of the infringements committed and the conduct of the taxable person at issue.
According to the judgment delivered by the CJEU on 3 April 2025 in case C-228/24, anti-abuse provisions of the Parent-Subsidiary Directive on are applicable in many cases, with their scope extending beyond intermediate companies. This means that it is possible to deny the parent company the exemption from corporation tax in respect of dividends received from the subsidiary from a different EU state, if it is deemed not to be genuine, even if it is not an intermediate company. The Court noted that the assessment should cover all relevant facts and circumstances and not only the circumstances at the time of payment of the dividends. In fax exemption from tax can only be treated as an abuse if a tax advantage defeats the object and purpose of the Directive.
According to the judgment delivered by the CJEU on 3 April 2025 in case C-213/24, a person selling land belonging to personal assets, who uses services of a professional trader to prepare it for sale, can be treated as liable for VAT. This means that the sale of such land is subject to VAT. Furthermore, according to the Court, spouses selling the plot in statutory joint property ownership should be treated as a single VAT payer, if they act jointly and together bear the economic risk associated with the carrying-out of those activities. A consequence of the CJEU judgment will be the need to amend the Polish VAT Act and to change the IT systems of tax offices to enable the registration of spouses as a single VAT payer.
