By the regulation of the Minister of Health published in the Journal of Law, the state of epidemic in Poland is cancelled. At the same time, the other published regulation of Ministry of Health introduced in Poland the state of epidemic emergency. What will change in tax settlements and obligations?

What is changing right now?

Minimum income tax on buildings

The suspension of the income tax on buildings applicable during the state of epidemic will apply until the end of May 2022.

The tax obligation returns from June 2022.

We wrote more about this in the last tax alert prepared by our experts: ‘The tax on income from buildings returns from June 2022’.

Tax preferences related to COVID-19 prevention

Canceling the state of epidemic means also removal of certain tax preferences related to counteracting COVID-19:

  • only until the end of May 2022 for CIT taxpayers, and for PIT taxpayers until the end of December 2022, there is a preference in IP BOX and R&D Relief;
  • from the beginning of June 2022, the possibility of deducting some donations for the purposes of counteracting COVID-19 and the possibility of making a one-off depreciation write-off on the fixed asset acquired for the production of goods related to counteracting COVID-19, will be abolished
  • since May 16, 2022, the 0% VAT rate cannot be applied to selected donations (including medical goods related to epidemic prevention).

What is changing in 2023?

  • Tax relief on so-called bad-debts.
  • Limits on PIT exemptions related to benefits or subsidies.

What is still changed by anti-COVID-19 regulations?

  • Certificate of tax residency – the possibility of using a certificate of tax residency with an indefinite period of validity or a taxpayer’s certificate from 2019, if the remitter has the taxpayer’s statement that the data contained in the certificate are up-to-date;
  • Suspension of the deadlines for reporting so-called domestic reportable tax arrangements (MDR);
  • White list of VAT taxpayers – the extended 14-day deadline for notification of payment of receivables to an account outside of the so-called white list of VAT taxpayers;
  • No prolongation fee for spreading into installments or postponing the payment date of taxes and tax arrears;
  • Simplification regarded to TP – exemption from the obligation to have a statement of a related entity on the correction for the purpose of TP correction of the declaration; Exclusion of the condition of not incurring a loss by a related entity in the scope of the obligation to prepare local TP documentation if its revenues drop by at least 50% from the total revenues earned in the corresponding period directly preceding the given year. Simplification related to the limitation of the number of persons authorized to sign TP’s declaration;
  • Possibility of conducting remote hearings in the Provincial Administrative Court and the Supreme Administrative Court and an additional possibility to schedule closed sessions.

 

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If you are interested in obtaining further information, or would like to discuss the impact of the above changes please contact:

Bartosz GłowackiBartosz.Glowacki@mddp.pl+48 603 980 382
Rafał Kran                   Rafal.Kran@mddp.pl+48 693 290 919
Gniewomir ParzyjagłaGniewomir.Parzyjagla@mddp.pl+48 664 718 736

or your advisor at MDDP.

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This Tax Alert cannot be treated as legal or tax advisory services. MDDP Michalik Dłuska Dziedzic i Partnerzy spółka doradztwa podatkowego spółka akcyjna shall not be liable for the use of the information contained in the bulletin without prior consultation with our legal or tax advisor.

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