It is 21 June 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:
- Innovation and development reliefs under the Polish Deal put out to pre-consultation
- Investment reliefs under the Polish Deal put out to pre-consultation
- New template of CIT return presented by the Ministry
- Pre-2015 loans made via contribution in kind in exchange for shares are covered by deduction
- Amendments to excise duty returns to come into effect as of 1 July 2021
- Draft amendments to the decree on exemptions from the obligation of keeping records using cash registers
Innovation and development reliefs under the Polish Deal put out to pre-consultation
A draft bill amending the Personal Income Tax Act and Corporate Income Tax Act, developed under the Polish Deal scheme, was put out to pre-consultation by the Ministry of Finance. The bill is to introduce a raft of reliefs aimed at drawing industrial production to Poland, boosting production volumes for companies already operating in Poland, providing discounts for companies investing in robotization and technologically advanced solutions to increase their innovation and productivity as well as granting systemic support to all businesses, regardless of their size and country of origin. Comments and remarks to the draft bill can be submitted to the dedicated email address until 21 June 2021.
Investment reliefs under the Polish Deal put out to pre-consultation
As part of the New Deal scheme, the Ministry of Finance has also launched pre-consultations of a draft bill amending the Corporate Income Tax Act and certain other acts. The reliefs to be brought about by the bill include an IPO relief, thanks to which expenses incurred in relation to making a stock exchange debut can be 150% eligible, along with a consolidation relief, under which, in addition to deducting the expenses related to the acquisition of another entity, companies will also be able to once again deduct the expense equivalent from the tax base. Moreover, the bill provides for a range of simplifications in creation and operation of tax capital groups and opening the Estonian CIT scheme for a larger group of entities, through abolishing the income threshold and the minimum investment volume. Comments and remarks to the draft bill can be submitted to the dedicated email address until 25 June 2021.
New template of CIT return presented by the Ministry
Changes in the rules of settling CIT for 2020 made it necessary to update the existing tax form templates. At the beginning of March, the Ministry of Finance published the new template of the CIT-8 return, yet the provided version was not interactive. Importantly, the current provisions clearly state that the returns can be submitted only electronically, meaning that the delay in publishing the interactive version of the form posed a nuisance to taxpayers. However, at the beginning of this week, the latest, 30th revision of the CIT-8 template, required for making 2020 CIT settlements, was finally made available on the “e-deklaracje” website.
Pre-2015 loans made via contribution in kind in exchange for shares are covered by deduction
On 14 June 2021, the Supreme Administrative Court issued a resolution (II FPS 2/21) in which it pronounced itself on the right of deduction exercised by shareholders who have made loans to the target company via contribution in kind in exchange for shares. In its latest resolution, an extended panel of the SAC judges admitted that, before 1 January 2015, where shares in a company were taken up in exchange for an in-kind contribution in the form of loan receivables, the tax deductible cost related to acquiring the shares shall be equal to the amount of the loan that was granted to the company by the contributing party, yet they cannot exceed the value of the contribution corresponding to the loan receivables.
Amendments to excise duty returns to come into effect as of 1 July 2021
On 15 June 2021, the Ministry of Finance issued an announcement to remind taxpayers about changes to excise duty returns, applicable as of 1 July 2021. One of the key changes is that taxpayers conducting economic activity can now submit excise duty returns only electronically, via PUESC (Electronic Services Portal of the Customs Service). Importantly, individuals not conducting business activity can still submit the returns in paper. Furthermore, taxpayers will be now under an obligation to submit quarterly returns for excise duty-exempt and zero-rated products listed in Annex 2 to the Act, for which there is no obligation to submit monthly returns.
Draft amendments to the decree on exemptions from the obligation of keeping records using cash registers
On 17 June 2021, a draft decree of the Minister of Finance, Development Funds and Regional Policy amending the decree on exemptions from the obligation of keeping records using cash registers was published on the Government Legislation Centre’s website. The draft decree provides, inter alia, for: exemption of the types of entities listed in the act implementing the VAT e-commerce package from the requirement to keep supplementary records, meaning records of sales made via cash registers to natural persons who do not conduct business activity and flat-rate farmers, as well as exemption of deliveries made by a designated postal operator obliged to provide universal services, which is currently Poczta Polska S.A.
The decree is expected to enter into force on 1 July 2021.