Split payment mechanism also in Poland
The Ministry of Finance published a proposal of the next law aimed at the effective improvement of VAT collectability. The so called split payment is to be available as of 1 January 2018 and is envisaged only for B2B transactions.
Transfer of immovable property to a tax authority and VAT
Possibility to deduct a loss of a Polish taxpayer’s foreign branch
In the settlement of corporate income tax, a taxpayer in principle has no right to deduct a tax loss incurred by its branch (permanent tax establishment) located in another country. However, in certain circumstances the impossibility to deduct a tax loss of a foreign branch in a Polish tax return prepared by a CIT taxpayer may violate the principle of freedom of establishment expressed in Article 43 of the Treaty establishing the European Community.
The Ministry of Development plans to lower social insurance contributions for micro-entrepreneurs
A proposal of the Act amending among others the Act on the Social Security System, announced by the Ministry already at the beginning of April, was finally published on the website of the Government Legislation Centre. The main objective of the legislator is to reduce the burden of social insurance contributions for entrepreneurs with low revenues.
Tax clarifications – new instrument of protection for taxpayers
Government wants to implement other new provisions preventing tax fraud
Customer’s lack of registration as an EU VAT taxable person is not conclusive for impossibility to apply the 0% rate in the case of intra-Community supply of goods
Expenses settled by netting may be included under tax deductible costs regardless of their amount
As of 1 January 2017, the CIT Act has been supplemented with Article 15d, which restricts the possibility to include costs settled otherwise than by a payment transfer under tax deductible costs.
Further entities covered by the obligation to submit Standard Audit File (SAF)
27 February 2017 is a deadline for the submission to the Minister of Finance, without any summons from the tax authority, information for January 2017 regarding the VAT purchase and sales records kept (SAF_VAT), as referred to in Article 109.3 of the VAT Act.
Taxation of a partial refund of capital share to partners in a partnership
A partner in a partnership may have his contribution to the partnership partially refunded by reduction of his capital share. The regulations which are currently in force do not specify detailed rules for taxation of payments made on that account to partners.