We present below a short summary of the most important changes in tax/business law and practice in July.
Legislation
- An amendment to the VAT Act – the introduction of a mandatory e-invoicing (KSeF) – was passed to the President. The Sejm rejected the ‘veto’ of the Senate.
- The Sejm passed act amending the Personal Income Tax Act and the Corporate Income Tax Act – the possibility for SME taxpayers to shorten the depreciation period for residential buildings and structures up to 5/10 years, depending on the level of unemployment in the county. The Act will now be taken up by the Senate.
- The President signed act amending the Act on real estate management and certain other acts – introducing, inter alia, the possibility to acquire ownership of land that is subject to perpetual usufruct, introducing 6% tax on civil law transactions (TCLT) on the purchase of the sixth and subsequent dwelling, abolishing 2% TCLT on the sale of a house/apartment if the buyer is a certain individual (e.g. purchase of the first property).
- An amendment to the Personal Income Tax Act and the Corporate Income Tax Act was published in the “Journal of Laws” (item 1414) – sustaining the limit for cash payments at PLN 15,000.
- The Council of Ministers has adopted a draft act amending certain acts in order to improve the legal environment.
Tax practice
Income taxes and transfer pricing
- A hotel service is not a provision similar to a lease agreement, hence its rendering does not affect the so-called commercial property tax in CIT – judgments of the Supreme Administrative Court of 4 July 2023, file reference number II FSK 70-71/21.
- When calculating the income limit for the purposes of determining the right to apply the 9% CIT rate, income other than capital are taken into account everywhere, including with regard to received subsidies – judgment of the Supreme Administrative Court of 13 July 2023, file reference number II FSK 106/21.
- The taxpayer has the right to depreciate fixed assets made available to contractors, if it derives economic benefits from this – individual interpretation of the Director of National Tax Information of 3 July 2023, file reference number 0114-KDIP2-1.4010.253. 2023.1.PP.
Other
- The institution of ”structure” functioning for real estate tax purposes is inconsistent with the Constitution of the Republic of Poland – judgment of the Constitutional Tribunal of 4 July 2023, file reference number SK 14/21.
- The Tribunal also ruled that the regulation of the Law on Proceedings before Administrative Courts to the extent that administrative courts are bound by a judgment of a criminal court also in the cases of persons other than the convicted person is in line with the Constitution of the Republic of Poland (judgment of 4 July 2023, file reference number SK 8/20).
- The Ministry of Finance has announced that the recently proposed amendments to the Tax Ordinance will not be subject to legislative work until the next parliamentary term.
