It is 25 January 2021. We invite you to the next episode of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.
In today's episode:
- Real estate companies must submit reports on payment dates in commercial transactions starting from 2022
- Draft amendment to the AML Act
- Explanatory notes to Slim VAT put out to consultation
- Deadline for submitting reports on partners in newly established general partnerships
- First reading of the government bill amending the customs law and certain other acts
- New rate of ZUS contributions
- A limited partnership may recognize the expenses incurred for the benefit of partners as tax-deductible items
Real estate companies must submit reports on payment dates in commercial transactions starting from 2022
On 1 January 2020, new provisions extending the group of entities required to submit annual reports on the applicable payment deadlines in commercial transactions entered into force. The reports must be submitted electronically via form available on www.biznes.gov.pl, by January 31 of a given year. Failure to submit the report as well as hindering or preventing timely performance of the reporting obligation may result in a fine imposed on heads of entities. Yet, due to lack of interim provisions, there were doubts as to when real estate companies should submit their first report. In response, on 20 January 2021, the Ministry of Economic Development, Labour and Technology announced that the first report on payment dates applied in commercial transactions is due from real estate companies starting from 2021, which means that it must be submitted no earlier than in January 2022.
Draft amendment to the AML Act
On 19 January 2021, the government bill amending the Act on counteracting money laundering and terrorist financing and certain other acts was submitted to the Lower House of the Polish Parliament. The proposed amendments include: extending the list of obligated institutions, specifying the rules for storing documents and information obtained as a result of applying financial security measures by obligated institutions, imposing on obligated institutions the requirement to record discrepancies between the information collected in the Central Register of Beneficial Owners (CRBO) and the information about the client's beneficial owner they gathered and to take actions to explain the reasons for these discrepancies, as well as introducing mechanisms to verify the data contained in the CRBO and defining the retention period for information kept in the Register. As per the applicable rules, the Act is to enter into force 14 days after its announcement.
Explanatory notes to Slim VAT put out to consultation
On 18 January 2021, draft explanatory notes to a suite of amendments to the Polish value added tax scheme (the 'Slim VAT' package), effective as of 1 January 2021, were published on the website of the Ministry of Finance. The explanatory notes include, inter alia, practical examples of the application of new provisions on correcting invoices and the way of recording them, changes in terms of input tax, consistent exchange rates and the scope of their application, changes to the Binding Rate Information and the split payment mechanism, and the rules for settling advance payments in exports. Comments and opinions on the draft explanatory notes can be submitted via e-mail until 1 February 2021.
Deadline for submitting reports on partners in newly established general partnerships
In response to the parliamentary inquiry no. 2151, the Ministry of Finance clarified the rules for setting the deadline for the submission by newly established general partnerships of information on the taxpayers who have, directly or indirectly, the right to participate in the partnership's profit and updating information on changes in the composition of their partners. As explained by the Ministry, the beginning of the financial year for a newly established entity is the day of opening of the books of accounts. On the other hand, the Accounting Act imposes on the newly established entity the obligation to open the books of accounts on the day of commencement of activity, which is the date of the first event with economic or financial effects. Therefore, if the newly created general partnership submits the information referred to in Article 1(3)(1a) of the CIT Act before the day of commencement of operations understood in this way, it will retain the status of a tax-transparent entity.
First reading of the government bill amending the customs law and certain other acts
On 21 January 2021, the first reading of the government bill amending the customs law and certain other acts took place at the Lower House of the Polish Parliament. The bill provides for, inter alia, simplified procedure of issuing customs and tax duties decisions on import of goods along with fuel surcharge and the emission fee due on the import of goods. Until now, when dealing with import duties on goods imported from outside the EU, separate decisions were issued on customs and other taxes, including VAT. Other amendments provided for by the bill allow for obtaining a PESEL number not only by individuals born in Poland, but also by foreigners who settle taxes in Poland. Up to now, the lack of PESEL number brought various inconveniences, e.g. related to registering one's residence, thus creating further issues with tax settlements.
New rate of ZUS contributions
In 2021, monthly ZUS contributions for business will amount to PLN 1457.49. New entities can take advantage of the 'relief for starting a business' for six months following business start-up. In that period, they will be only required to pay the health insurance contributions of PLN 381.81. Moreover, for the 2 consecutive years, entities may pay preferential contributions in the amount of PLN 647.59.