We would like to present you with a brief summary of the changes in the tax law regulations that will come into force from the beginning of 2023. It is worth analyzing them in terms of their impact on your business.
Corporate Income Tax (CIT)
The first group of changes results from the amendment adopted in 2022, called “Polish Deal 3.0”. These changes included in particular:
- liquidation of the so-called “hidden dividend”;
- changes in the tax on shifted income – clarifying changes and the introduction of the so-called reverse proving (it is recommended to obtain statements from related entities);
- minimum tax – suspension, increase of the break-even point, change of calculation methodology;
- WHT – extending the validity of the WH-OSC statement from three to seven months;
- thin capitalization – clarification that the higher of the two possible amounts (PLN 3 million or 30% of EBITDA) is excluded from tax costs;
- Polish Holding Company (PSH) – introduction of a 100% exemption from dividends (instead of 95%), the possibility of applying the EU participation exemption;
- “Estonian” CIT – e.g. modification of the method of determining income from expenses not related to business activity in the case of using assets for mixed purposes;
- abolition of the provisions on “indirect” tax haven transactions, raising the thresholds for “direct” tax haven transactions.
Further, from 2023, taxpayers will definitely lose the right to settle the depreciation of residential premises.
From February 2023, the robotization relief will no longer apply to activities related to: significant greenhouse gas emissions, extraction, processing and combustion of fossil fuels, storage and incineration of waste.
Value Added Tax (VAT)
At the beginning of 2023, the provisions on the VAT group entered into force. This solution is based on the form of “fiscal unity” of members for tax purposes, which results in e.g. VAT exemption for intra-group transactions.
There have also been changes in the VAT rates:
- rates for natural gas, heating, electricity and fuel return to 23%;
- the fertilizer rate will be 8% (instead of 0%);
- the rate for the basic range of food products remains at 0%.
We are still waiting for the changes to come into force under the so-called “SLIM VAT 3” package. According to ministerial declarations, this is to take place in April 2023.
Personal income tax (PIT)
PIT taxpayers also lose the right to account for depreciation of residential premises at the beginning of the year.
Further, persons who are not entrepreneurs will be able to tax the so-called private rental only in the form of a lump sum on registered income.
The rules for submitting PIT-2 declarations are also changing – e.g. the document will be submitted not only by employees.
Taxpayers settling the so-called flat tax will be able to settle (tax cost or deduction from income) not PLN 8,700 but PLN 10,200 of health insurance premium.
The possibility of paying PIT using BLIK has also been introduced.
Real Estate Tax
The maximum Real Estate Tax rates that communities can impose have been increased. For example, the rate: on land related to conducting business activity may amount to PLN 1.16 per 1 m2 of area, and on buildings related to conducting business activity and on residential buildings or their parts occupied for conducting business activity may amount to PLN 28.78 per 1 m2 of usable area.
It is worth following the approach of specific communes where fixed assets are held on an ongoing basis.
Due to the two-fold (1 January 1 and 1 July) increase in the minimum wage, the quota thresholds in the Penal Fiscal Code will increase, in particular:
- the threshold for delineating a crime and a minor offence will be: PLN 17,450 (from 1 January to 30 June) and PLN 18,000 (from 1 July to 31 December);
- analogous values will be applied to the maximum level of the fine that may be imposed by a fine ticket;
- the maximum fine for a fiscal offense may amount to PLN 33,503,040 (from 1 January to 30 June) and PLN 34,560,000 (from 1 July to 31 December).