It is 19 July 2021. We invite you to the next episode of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.

Extended panel of SAC judges to determine the status of silos for the purposes of real estate tax

By the order of 13 July 2021 (case file III FSK 1611/21), the Supreme Administrative Court referred the case of whether, for the purposes of real estate tax, silos should be considered buildings or structures to an extended panel of seven SAC judges. Up to now, the SAC’s position on this matter was flawed with inconsistency, with around 200 cases related to determination of the tax status of silos still pending. The SAC’s resolution on this matter will be of crucial importance to many industries applying silos in their business activities, as well as for local governments. Should the court state that silos are constructions, silo owners or holders will be required to pay local authorities a real estate tax, calculated as 2% of the constructions’ value. If, on the other hand, the court states that silos are buildings, the levy will be charged on their surface, which usually means much lower taxation.

Beverages given to employees or donated to charities free of sugar tax

By way of ruling issued on 29 June 2021 (case file 0111-KDSB1-1.4019.125.2021.2.MF), the Head of the National Revenue Information Service (NRIS) confirmed that the sugar fee is charged on placing beverages on the domestic market, i.e. on sales thereof. Free-of-charge provision, however, does not constitute sales. Consequently, the fee shall not be charged on entities providing beverages to their employees or donating beverages for charity purposes. Similarly, the fee shall not be charged on beverages provided to contractors, if the number of free-of-charge beverages handed over does not depend, for example, on the turnover. However, if such dependencies exist, this means that the purchaser receives from the entity more goods for the same amount, thus, the unit price of the beverage gets decreased and the sugar fee must be paid, explained the Head of NRIS.

No tax on national COVID-19 vaccine lottery prizes

On 14 July 2021, the Decree of the Minister of Finance, Development Funds and Regional Policy on exempting the prizes won in the national COVID-19 vaccine lottery from personal income tax came into force. Personal income tax will not be collected on awards won in the National Vaccination Program lottery with a one-off value exceeding PLN 2,280. This means that the exemption will cover all lottery awards, given that the prizes with the value below PLN 2,280 are exempt from tax under the PIT Act provisions.

No tax on the redeemed part of the subsidy granted under the Financial Shield

A draft decree of the Minister of Finance, Development Funds and Regional Policy on exempting income (revenue) earned from the redeemed part of the subsidy granted by the National Development Fund under the Financial Shield schemes can be now accessed on the Government Legislation Centre’s website. The draft decree brings a proposal to abandon collection of tax on the redeemed part of the financial subsidy granted by the Polish Development Fund under both Financial Shields, as part of implementing the government program of financial support to business, deployed in response to the COVID-19 pandemic. The measure will apply to income (revenue) earned by the scheme beneficiaries from 1 June 2021 to 31 December 2022.

New SAF-T structures put out to consultation

On 13 July 2021, the Ministry of Finance announced that it has launched consultations for the new SAF_T structures, i.e. JPK_V7M for taxpayers making monthly settlements and JPK_V7K for taxpayers making quarterly settlements. The new structures were established based on the amended decree of the Minister of Finance, Development Funds and Regional Policy on the detailed scope of data provided via tax returns and VAT records, inter alia, to include implementation of the VAT e-commerce package and supplementary deadlines for accelerated VAT refund (a 15-day deadline available under the Cashless Taxpayer program and a 40-day deadline related to the National e-Invoicing System). Comments and opinions on the new structures can be submitted via e-mail until 31 July 2021. 

New double taxation treaty signed with Georgia

A new agreement on the elimination of double taxation in the field of income taxes and the prevention of tax evasion and avoidance was signed between Poland and Georgia on 7 July 2021 in Tbilisi. It was modelled to reflect the current Polish tax policy, the BEPS outputs as well as the measures aimed at tightening of tax systems and preventing tax fraud set out in the MLI convention. The new agreement includes, among others: a real estate clause, a full information exchange clause and a general anti-avoidance clause.