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It is 8 February 2021. We invite you to the next episode of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.

MDR provisions may be subject to interpretation

In its judgment of 28 January 2021 (case file FSK 1703/20), the Supreme Administrative Court concluded that the MDR obligations may be subject to individual tax rulings. Up to now, the Head of the National Revenue Information Service refused to issue rulings pertaining to MDR-related obligations, with the key argument being that the MDR provisions are of procedural character, and as such cannot be subject to interpretation. The tax authority also refused to issue an individual ruling in the case which became the subject of the judgment of the Supreme Administrative Court. In its judgment of 28 May 2020, the Provincial Administrative Court in Cracow sustained the authority's position and confirmed that the MDR regulations are procedural in nature, and if the official interpretation of procedural provisions was deemed admissible, compliance with such an interpretation would not have a protective effect at all. However, the SAC challenged this argumentation, subsequently overturning the Head’s decision and the PAC’s judgment.

Extension of deadline for January PIT advance payments for certain industries

On 03 February 2021, a draft decree of the Minister of Finance, Development Funds and Regional Policy on extending the deadline for making income tax advance payments and lump-sum tax payments for certain tax remitters was published on the Government Legislation Centre’s website. The decree extends the deadlines for remitting the tax collected for January 2021 for certain industries until August 2021. The deadline extension is to cover remitters who suffered negative economic consequences of the COVID-19 pandemic, and who conduct non-agricultural, prevailing business activity under one of 48 PKD [Polish Classification of Activities] 2007 codes specified in the decree. 

UK entities to be relieved of the obligation to appoint a tax representative

The Ministry of Finance announced that it is currently working on lifting the obligation to appoint tax representatives in Poland from UK businesses. Pursuant to the Polish VAT Act, a tax representative is responsible for settling VAT for and on behalf of a non-EU entity. Earlier, the Ministry indicated that the appointing obligation will not apply to VAT settlements for December 2020, now, however, it wants to make this a permanent arrangement. It is likely that the decision will be delivered by way of a decree, since, under the Polish VAT Act, the minister competent for public finance may issue a decree to specify cases in which there is no obligation to appoint a tax representative.

Provisions on advertising contributions put out to pre-consultation

On 2 February 2021, the Ministry of Finance announced through its website that the bill on additional proceeds of the National Health Fund, National Fund for the Protection of Heritage Monuments and the creation of the Fund for Support of Culture and National Heritage in the Media Area has been put out to preconsultation. Importantly, the bill imposes on traditional and online advertisers a new levy, referred to as advertising contributions and intended to be a kind of counterpart of a digital tax. The contributions will be due on both traditional and online advertising. The bill has been put out to consultation, open to all interested entities, and is expected to enter into force on 1 July 2021. Comments and opinions on the bill can be submitted until 16 February 2021.

More information can be found in KPMG’s Tax Alert entitled “Draft bill on advertising contributions”.

Amendments to the social security system announced

On 01 February 2021, the draft bill amending the Act on the on the Social Insurance System and certain other Act was published on the Government Legislation Centre’s website. The purpose of the draft is to order and improve the Polish security system, to implement uniform solutions for the granting and payment of benefits as well as to enhance the functioning of the Social Security Administration in the context of financial management and settlements with contribution remitters. It provides, inter alia, for unification of the rules for social insurance coverage for single member limited liability companies and partners in general partnerships, professional partnerships or limited partnerships, introduction of a non-cash form of payment of long-term benefits (from 1 January 2022), renouncement from termination of voluntary insurance coverage due to failure to pay contributions in a timely manner, and the obligation to provide the Administration with the necessary data to determine entitlements and the amount of sickness insurance benefits by remitters and insured. The new provisions would enter into force on 1 April 2021.

Extension of the PDF’s Financial Shield

On 02 February 2021, the government passed a resolution extending the scope of support granted to micro, small and medium-sized business by the Polish Development Fund under the Financial Shield scheme. The PDF’s Financial Shield 2.0 was launched in mid-January 2021. Initially, it was aimed at entities operating in 45 industries, which to the greatest extent suffered from restrictions introduced due to the second wave of the pandemic. Now, the government’s resolution extends the Shield’s scope by nine more industries. Pursuant to the resolution, the aid under the Financial Shield 2.0 can be granted to entities engaged in wholesale of clothing and footwear; activities of sports clubs; teaching of foreign languages; retail sale of footwear and leather goods in specialized stores; washing and (dry-)cleaning of textile and fur products; motion picture, video and television program production activities; post-production activities; motion picture, video and television program distribution activities; as well as sound recording and music publishing activities. The value of the aid for the new industries will amount to PLN 750 million.