We present below a short summary of the most important changes in tax/business law and practice in January.
Legislation
- The Sejm passed the Act on Tax on Goods and Services, the Act on Excise Duty and certain other acts – including the extension of the reverse charge mechanism with respect to gas or energy, as well as changes in the application of rates on certain goods.
- The Council of Ministers adopted a draft act amending the Excise Duty Act, the Public Health Act and certain other acts – in particular taxation of nicotine pouches and other nicotine products.
- The Council of Ministers adopted a resolution introducing changes to the National Recovery Plan (Pol. Krajowy Plan Odbudowy, KPO) – resignation from full contributions for contracts of mandate, and an alternative plan to transform sham civil law contracts into employment contracts and include them in the length of service.
- The Council of Ministers adopted a draft act amending the Tax Ordinance Act and certain other acts – including changes in the scope of: letters and interest on overpayments. The ministry is also working on changes in the limitation of tax liabilities.
- A draft act amending the Labour Code has been published on the website of the Government Legislation Centre – including a change in the definition of mobbing.
Practice in taxes
Income taxes and transfer pricing
- The costs incurred by a shareholder of a special purpose vehicle (which will generate income) cannot be his tax deductible costs – judgment of the Supreme Administrative Court of 8 January 2025, file reference number II FSK 351/22.
- A jubilee gift for an employee is not subject to PIT, but may be covered by inheritance and donation tax – individual interpretation of the Director of the National Tax Information of 8 January 2025, file reference number 0112-KDIL2-1.4011.895.2024.2.DJ.
- The date of deletion of entry of an entrepreneur from the register (Pol. CEIDG) is not the only criterion for assessing whether the income from the sale of an asset is related to the source of income derived from business activity – judgment of the Supreme Administrative Court of 8 January 2025, file reference number II FSK 1147/24.
- Further (sub)lease of rented cars is also subject to limitation in tax costs – judgment of the Supreme Administrative Court of 10 January 2025, file reference number II FSK 463/22.
- Only serious errors in the accounting books, objective inability to reliably determine the taxpayer’s net financial result deprive the taxpayer of the right to the “Estonian” CIT – the Minister of Finance’s response to parliamentary question no. 7088 of 14 January 2024, file reference number DD8.054.11.2024.
- Remuneration for waiver of claims is not a tax-deductible cost in CIT – judgment of the Supreme Administrative Court of 14 January 2025, file reference number II FSK 464/22.
- A compensatory benefit (compensation) cannot benefit from the SEZ exemption in CIT – judgment of the Supreme Administrative Court of 14 January 2025, file reference number II FSK 468/22.
- A free-of-charge guarantee does not constitute an arm’s length transaction (within the meaning of transfer pricing regulations) – judgment of the Supreme Administrative Court of 16 January 2025, file reference number II FSK 500/22.
- The company’s financing of MBA studies for a member of the management board constitutes income for him in PIT (judgment of the Supreme Administrative Court of 16 January 2025, file reference number II FSK 510/22). However, in the scope of postgraduate studies, the subject of which is related to the employer’s interest, no income arises – individual interpretation of the Director of the National Tax Information of 27 January 2025, file reference number 0112-KDIL2-1.4011.1000.2024.1.MKA.
- Depreciation write-offs on fixed assets produced or improved as a result of B+R activities cannot be accounted for as costs if they are not used as part of it – judgment of the Supreme Administrative Court of 22 January 2025, file reference number II FSK 533/22.
- Compensation from a former employer for unlawful dismissal from work is subject to PIT – judgment of the Supreme Administrative Court of 22 January 2025, file reference number II FSK 533/22.
- Real estate companies may deduct the depreciation of buildings in tax costs, but only up to the amount of balance sheet depreciation (file reference number II FSK 788/23; II FSK 789/23; II FSK 987/23; II FSK 1086/23; II FSK 1652/23).
VAT
- The European Commission has adopted a draft implementing decision on the extension of the mandatory split payment mechanism in Poland until 28 February 2028.
- The issuance of investment tokens is not subject to VAT – judgment of the District Administrative Court in Warsaw of 28 January 2025, file reference number II SA/Wa 2114/24).
- The fee due for resignation from a preliminary contract for the sale of goods is not subject to VAT – judgment of the Supreme Administrative Court of 30 January 2025, file reference number I FSK 1377/21.
International Taxes
- It is permissible to use the “look through approach” approach in withholding tax – judgment of the District Administrative Court in Warsaw of 3 January 2025, file reference number III SA/Wa 2385/24.
- However, a different approach was presented in the advance tax rulings of the Director of the National Tax Information of 27 January 2025, file reference number 0114-KDIP2-1.4010.606.2024.1.PP and 0114-KDIB1-1.4010.623.2024.1.AW.
Other
- The payment of an equivalent/lump sum for remote work does not create a contribution obligation, as there is no income in PIT – decision of the Social Insurance Institution branch in Gdansk DI/100000/43/891/2024.
- The Ministry of Finance clarifies doubts as to the date of submission of the letter to the address for electronic delivery of the tax authority: the date of posting, not the date of acceptance of correspondence, is the basis for determining the date of submission of the letter.
- The National Tax Administration has released the e-Tax Office (e-US) mobile application.