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Brexit vs VAT

Brexit vs VAT Brexit – what’s next? For a long time the issue of Great Britain leaving European Union remains one of the hot topics on the international arena. The ‘divorce’ is scheduled for the end of March 2019. However,

Mandatory Split Payment mechanism.

Mandatory split payment mechanism. On 23rd January 2019 the European Commission published draft decision on authorising Poland to introduce a special measure derogating from Art. 226 of Directive 2006/112 / EC on the common system of value added tax. The

The White List (biała lista) –  hand or hurdle for VAT payers?

The Ministry of Finance presented further proposals for amendments regarding VAT. These pertain to the so-called White List aiming to help taxpayers verify their contractors. The White List is free, official, online electronic register of active VAT taxpayers. Fundamentally, the

SAF-T VAT changes coming in 2019

The Ministry of Finance has recently published the draft amending the VAT Act that implements, among others, the updated version of JPK_VAT (Polish Standard Audit File for VAT) structure (previously communicated as JPK_VDEK) that might replace VAT returns as of

MOSS – implementation of Directive 2017/2544

Taking a look at the latest project of changes in the Polish VAT Act with planned implementation of Directive  2017/2544 coming into force from 2019. What is the objective? Firstly, it is a step forward in the unification process of

Era of VAT returns comes to an end

JPK_VDEK is a working title of the new structure of the standard audit file which the Ministry of Finance is currently working on. The new file is supposed to completely replace the current JPK_VAT file and is going to include

New Polish VAT Rates Classification as of 2019

Starting from 2019, the Ministry of Finance in Poland plans to introduce a new classification of VAT rates. This will be related to the change in the way the goods and services are identified for the VAT purposes in Poland

Novela zákona o DPH v ČR od 1. 1. 2019

Od 1. ledna 2019 vstoupí v platnost nová pravidla pro uplatňování DPH, proto bychom vám chtěli v tomto článku přiblížit ty nejvýznamnější změny. Poukázky/vouchery Tím, že byla v červnu 2018 přijata nová směrnice EU pro oblast DPH, všechny členské státy musí do svého

Amendments to Czech VAT Act from 2019

As of 1st January 2019 the new rules of Czech VAT Act will enter into force. Below we explain the most important provisions in details. Vouchers As the EU VAT Directive regulating vouchers was adopted in June 2018 all Member

Lowered VAT rate for electronic publications coming from 2019?

On 2nd October 2018, the ECOFIN Council adopted a draft amendment to Directive 2006/112 / EC. The proposed changes are intended to enable EU Member States to decide on the reduction of VAT rates applicable to electronic publications (books, newspapers

Távolsági értékesítés – Magyarország

Távolsági értékesítés – Magyarország A digitalizáció az online értékesítést egyre inkább előmozdítja, ugyanakkor a cégeknek számos adminisztratív kihívással kell szembenézniük ezen a téren. A nemzetközi értékesítés soha nem volt egyszerű, kezdve a külföldi vásárlói kultúra megismerésétől egészen a logisztikai és

Distance selling in Hungary

Distance selling in Hungary The digitalization moves towards online selling and when it comes to the expansion of the company boundaries it has to face several legislative restrictions to comply with. International sales has never been easy, starting from capturing

“It’s just a FORMality” – issues with VAT-7 return for July 2018

Your company intends to apply for a VAT refund in Poland in the basic period? Then you must know that submitting correct VAT return for July may be ‘a bit’ more problematic than you hope. At the moment submitting VAT

Employees’ Capital Pension Schemes soon to be universal and mandatory for the employers

Employees’ Capital Pension Schemes (ECPS) – revised bill has been referred by Ministry of Finance for public consultation and inter-ministerial reconciliation. The core premise has not changed – ECPS will rely on conjoint input of the employer, employee and state

Limits on the Amount of Costs Related to Purchasing Certain Rights and Services

Pursuant to the Act of 27 October 2017 Amending the Acts on Personal Income Tax, Corporate Income Tax and the Act on Flat-Rate Income Tax on Selected Incomes Earned by Individuals, the document was compounded by means of adding Article

Real Estate Investment Trusts (REITs) and Tax Preferences

25 April 2018 saw the publication of a draft bill conferring tax preferences on companies investing in rental properties (a Polish equivalent of real estate investment trusts) and their shareholders. The bill governs matters related to companies investing in real

Revolutionary Changes to Income Tax on Values of Commercial Properties

Pursuant to the Act of 27 October 2017, the legislators introduced new regulations on the so called minimum income tax. The regulations have subsequently been compounded by another act and a set of self-amendments to cohere the rules applicable since

General Ruling on the Preparation of Tax Documentation by foreign Permanent Establishments

3 April 2018 saw the publication of a general ruling on transfer pricing dated 26 March 2018. The publication marked one of the latest steps in a series of rulings pertaining to regulations effective as of 1 January 2017. The

The Minister of Finance’s General Ruling on Updating Tax Documentation

On 3 April 2018 the Minister of Finance published a general ruling dated 28 March 2018 on the obligation of preparing, reviewing and updating tax documentation. In particular, the ruling applies to financial transactions such as loans, credits, the issuance

Exempting lessees from the obligation of restoring the lease subject to its original condition and the issue of VAT

Thanks to the efforts undertaken by our Tax Advisory Department, on March 14, 2018, we managed to obtain two favourable individual VAT rulings. The rulings (0114-KDIP1-2.4012.701.2017.3.RD, 0114-KDIP1-2.4012.140.2018.1.RD, 0114-KDIP1-2.4012.46.2018.2.RD) at issue pertained to two questions: Whether a situation in which a

Group rulings on tax law

The Ministry has provided a rationale behind changes to the sections of the Tax Ordinance Act related to issuing individual tax rulings. The amendments are to counter the abuse of tax rulings perpetrated by taxpayers operating within a group of

New Amendment to VAT Law – the relevance of proposed regulatory changes

On 27 February 2018 the website of the Government Legislation Centre featured a Draft Bill Amending the VAT Act and Certain Other Acts dated 13 February 2018. The latest amendments are to serve as the next step taken towards closing

Taking up Capital Shares and the Obligation to Prepare Transfer Pricing Documentation

An individual tax ruling of the Head of the National Revenue Information confirms the Ministry’s position on the obligation to prepare tax documentation in situation when a taxpayer takes up shares issued upon creating a subsidiary in exchange for a

General Ruling of the Minister of Finance on Transfer Pricing Obligations

Since 1 January 2017 the obligation to prepare transfer pricing documentation has been subject to verification pursuant to the new phrasing of article 9a of the Corporate Income Tax Act. However, upon publishing the new regulations, some controversies concerning their

Cash Contributions and the Creation of Revenue

On 1 January 2018 article 12, paragraph 1, subparagraph 7 of the CIT Act was amended. Article 12, paragraph 1, subparagraph 7 of the CIT Act (applicable until 31 December 2017) Article 12, paragraph 1, subparagraph 7 of the CIT

Deadlines for the preparation of transfer pricing documentation deferred

On 15 March 2018 The Ordinance of the Minister of Finance of 14 March 2018 on the Extension of Deadlines for the Performance of Certain Duties Related to Transfer Pricing Documentation became effective (Journal of Laws, item 555). The changes

Innovation box

Innovation Box is a new initiative pursued by the Ministry of Business and Technology with the aim of boosting Polish entrepreneurship. Similar solutions have already been adopted by some of the nations associated under the aegis of the Organization for

New registers of VAT payers made available by the Ministry of Finance

On 13 January 2018 the Act of 24 November 2017 Amending Certain Acts to Combat the Use of the Financial Sector to Commit Treasury Fraud became effective. The Act, also known as the STIR (the Computer System of the Clearing

New doubts concerning tax on commercial properties

On 1 January 2018 the Polish tax system was compounded by a new income tax structure, commonly referred to as the minimum tax on commercial properties or the shopping mall tax, pursuant to which the revenue on the ownership of

Creating a permanent establishment in Poland – Polish jurisprudence and BEPS 7

Considering the fact that tax laws often fail to keep pace with changing economies, OECD has pursued an initiative whose aim is to eliminate base erosion and profit shifting. As a result, a list of fifteen action points, commonly referred

Payments under rent guarantee and the issue of VAT

On 29 December 2017 the Head of the National Revenue Information (hereinafter: NRI) issued an individual ruling on payments made under a guarantee for a property owner to generate a predetermined amount of operating income (0114-KDIP1-3.4012.372.2017.2.MT). In the ruling the

Authorities to properly prove the abuse of the right to input tax

On 18 December 2017 the Supreme Administrative Court passed an important judgement which revoked the first instance ruling that was favorable to the tax authorities (Case File no. I FSK 352/16). A written statement of reasons for the judgment is

What new brings us another amended draft bill on supporting new investments?

Another amended draft bill on supporting new investments, supplemented with draft implementing regulations confirms the general direction in which the changes pursued by the Ministry of Finance and Economy are going. Despite a considerable delay in legislative works, the “package”

What to look for when completing the CIT-TP form?

Taxpayers whose revenue or costs have exceeded the equivalent of EUR10m will be obliged to submit a simplified statement of transactions with related entities (CIT-TP) along with the CIT-8 tax return. A template of such statement supplements the ordinance of

CIT in Hungary (included changes effective from 2018)

Hungary is more and more regarded by investors not simply as an ideal production location, but also as a remarkable “advanced manufacturing & innovation centre” of Europe. For businesses who are open or plan to invest in Hungary, it might

Bill about the changes in Rules of Taxation effective from 1st January 2018 in front of the Parliament of Hungary

After taking into consideration the incoming comments and suggestions following the call for public debate during the summer, the Hungarian Finance Minister submitted on 24th October to the Parliament for debate the two bills related to the rules and admistration

Electronic Road Transportation Control System (EKÁER): Request of the European Committee (EC) to harmonize it with the EU VAT Directive

The EC sent a letter of formal notice to Hungary in October, because according to the EC, the Hungarian EKÁER system infringes the EU VAT Directive as it provides for certain reporting and other administrative requirements primarily for legal entities

Amendments to the VAT act may be unfavourable for the financial industry

The justification for the proposal to amend the VAT Act indicates that the aim of repealing Art. 43(13)–(14) is to adapt the current VAT regulations to the VAT Directive in response to the judgment of the Court of Justice of

Council introduces consolidated rules on taxation of vouchers

As the current provisions of the VAT Directive do not ensure consistency in the tax classification of transactions involving vouchers, causing a divergence of interpretation across the EU, on 27 June 2016 the Council of the European Union adopted an

Installations as the subject of real estate tax

A definition of a structural object (obiekt budowlany) entered into force on 28 June 2015. The new law generates justified concern among taxpayers in respect of taxation of installations (which are not defined in the tax law). Now a structural

Tax relief for research and development

The media frequently cite economic experts on the need to increase innovation in the Polish economy in the coming years. One way this objective may be achieved is by amending tax laws (corporate income tax and personal income tax). On

Are contractual damages and penalties tax-deductible?

In the course of affairs, businesses are sometimes required to pay contractual damages or penalties. This may arise from a range of different situations, such as improper performance, failure to perform, or actions not directly connected to fulfilment of contractual

SAF-T, a new dimension of tax audits

Under new regulations (Art. 193a of the Tax Ordinance), if taxpayers maintain their books by computer, they will be required to provide the tax authorities with all or part of their accounting books and records in a unified format known as

VAT deduction ratio

Starting 1 January 2016, a new regulation applies on deduction of VAT in the case of purchases by taxpayers related to both business operations and operations outside the scope of VAT, particularly when the purchases cannot be precisely allocated to a

Bad debt relief

On 1 June 2005 the Polish parliament introduced bad debt relief, enabling VAT payers to decrease output VAT in case of overdue receivables. Since 2013, the regulation has remained almost unchanged. The prohibition against taking bad debt relief when the

Changes in property tax from January 2016

A bill amending the Act on Local Taxes and Fees was signed into law by the President of Poland on 25 July 2015. The new regulations regarding real estate tax will enter into force on 1 January 2016. The most important changes

Time is money: speeding up the financial close, consolidation and reporting

Tadeusz Robinski, Partner & CEO KR Group, ContactOnLine (British Polish Chamber of Commerce), number 18/2015

Post-transaction discounts booked when incurred

In a judgment of 25 March 2015 (Case II FSK 955/14), the Supreme Administrative Court held that post-transaction discounts received by a taxpayer should be included in the accounting period in which the company received the discount. That case related

Debt-for-equity swap via contribution in kind

Frequently, companies that hold receivables under loans they have granted to subsidiaries decide to convert them into shares. In such situations taxpayers may be uncertain whether this contribution to the company against new shares constitutes a contribution in cash or

Newsletter KR Group 07/2018

In this issue: Employees’ Capital Pension Schemes (ECPS) soon to be universal. Revised bill has been referred by Ministry of Finance for public consulation and inter-ministerial reconciliation. Changes in minimum tax on commercial real estate    Amendments to the act

Newsletter KR Group 06/2018

In this edition: Revolutionary Changes to Income Tax on Values of Commercial Properties. The legislators introduced new regulations on the so called minimum income tax. The regulations have subsequently been compounded by another act and a set of self-amendments to

Newsletter KR Group 05/2018

W numerze: Group rulings on tax law. The Ministry has provided a rationale behind changes to the sections of the Tax Ordinance Act related to issuing individual tax rulings. The amendments are to counter the abuse of tax rulings perpetrated

Newsletter KR Group 04/2018

In this edition: Deadlines for the preparation of transfer pricing documentation deferred. On 15 March The Ordinance of the Minister of Finance of 14 March 2018 on the Extension of Deadlines for the Performance of Certain Duties Related to Transfer

Newsletter KR Group 03/2018

In this edition: Innovation box. Innovation Box is a new initiative pursued by the Ministry of Business and Technology with the aim of boosting Polish entrepreneurship. Similar solutions have already been adopted by some of the nations associated under the

Newsletter KR Group 02/2018

In this edition: Minimum wage. Tax-free exclusion. Change in limit of revenue-earning costs for creatives. Limits on tax exemptions. Income from shares received in incentive programmes. Download   MINIMUM WAGE The government raised the minimum monthly wage from PLN 2,000

Newsletter KR Group 01/2018

In this edition: CIT-TP. Taxpayers whose revenue or costs have exceeded the equivalent of EUR10m will be obliged to submit a simplified statement of transactions with related entities (CIT-TP) along with the CIT-8 tax return. Authorities to properly prove the

Newsletter KR Group 15/2017

In this edition: Supreme Administrative Court confirms tax authorities’ position on fixed establishment for VAT purposes. Costs of Advisory services to be excluded. First Occupation – VAT Act vs. VAT Directive. Supreme Administrative Court soon to decide on relief for

Newsletter KR Group 14/2017

In this edition: Reverse charge and the right to deduct VAT. VAT Act vs. VAT Directive. Purchaser’s right to deduct input tax arising from a VAT invoice issued by an inactive entity. Tax on the value of shares acquired in

Newsletter KR Group 13/2017

In this edition: Return to a lower retirement age. One account at ZUS (Social Insurance Institution). Download   RETURN TO A LOWER RETIREMENT AGE The act amending the retirement age in Poland entered into force on 1.10.2017, restoring the age

Newsletter KR Group 12/2017

In this edition: VAT on management contracts? Costs of intangible services and licensing fees to be limited from 2018. Support for new investments. New rules on thin capitalization from 2018. R&D centers to take new form. Download   VAT ON

Newsletter KR Group 11/2017

In this edition: What does split payment mean for taxpayers? Transport package to include plant oils. New tax likely to be effective from January 2018. CBC-P – new obligation for CIT payers. Download   WHAT DOES SPLIT PAYMENT MEAN FOR

Newsletter KR Group 10/2017

In this edition: Transfer pricing – new interpretative questions on the obligation to produce transfer pricing documentation. Changes in accounting for R&D expenses. First Occupation – another risk for investors? Certificate of residence – not always on paper. Obligatory “Cégkapu”

Newsletter KR Group 09/2017

In this edition: Proposed amendments to CIT Act. Favourable changes in amortization. Retail tax violates EU law. General interpretation of Minster of Finance on services auxiliary to financial services. Download   PROPOSED AMENDMENTS TO CIT ACT A proposal to amend

Newsletter KR Group 08/2017

In this edition: Changes from 1 June 2017 in the Administrative Court Procedure Law. Playing for time? Settling losses from prior years. Poland signs the Multilateral Instrument. New forms for transactions between related entities. New legislation in Hungary relating to

Newsletter KR Group 07/2017

In this edition: Amendments affecting pregnant women from 1 May 2017. Amendments concerning temporary employees starting 1 June 2017. Amendments in employing of foreigners. Download   AMENDMENTS AFFECTING PREGNANT WOMEN FROM 1 MAY 2017 Work at computers has been treated

Newsletter KR Group 06/2017

In this edition: Proposed VAT amendment — split payment. New reporting obligations — SAF-T for bank statements. Income tax consequences of transferring energy infrastructure. When does the VAT obligation arise for construction services? Download   PPROPOSED VAT AMENDMENT — SPLIT

Newsletter KR Group 05/2017

In this edition: Re-invoicing for construction services. Walls and tax classification of structures. Fit-out works and income tax. Relief for bad debts—Polish VAT Act violates EU VAT Directive. Download   RE-INVOICING FOR CONSTRUCTION SERVICES The extensive specialization in today’s economy

Newsletter KR Group 04/2017

In this edition: Costs for internally generated fixed assets are strictly correlated with the project. When is a manager working under a managerial contract a VAT payer? Sham invoices. VAT registration issues. Download   COSTS FOR INTERNALLY GENERATED FIXED ASSETS

Newsletter KR Group 03/2017

In this edition: New SAF-T structures – what about corrections for July-December 2016? Construction works – first doubts. R&D tax relief. Download   NEW SAF-T STRUCTURES – WHAT ABOUT CORRECTIONS FOR JULY-DECEMBER 2016? Starting from settlements for January 2017, small

Newsletter KR Group 02/2017

In this edition: SAF-T: circus of uncertainty continues. Two dates of acquisition of the same property and income tax obligation on disposal. Recent tax rulings. Download   SAF – CONTINUATION OF THE CAROUSEL UNCERTAINTY The Polish Ministry of Finance has

Newsletter KR Group 01/2017

In this edition: The end of partial work certificates. Internal company regulations. Social fund. Appeal to a court. Download   THE END OF PARTIAL WORK CERTIFICATES Employers are released from the duty of preparation of partial work certificates. An employee

Newsletter KR Group 09/2016

In this edition: Intragroup loans may impact VAT apportionment. Expenses paid outside of bank account are to be excluded from tax-deductible costs. Extension of VAT refund deadline to verify counterparties is not always allowed. RECENT TAX RULINGS: German company may

Newsletter KR Group 07/2016

In this edition: Ministry of Finance announces which costs of business trips can be deductible. Sale of debts as a form of tax optimization. Depreciation of building partially leased free of charge. RECENT TAX RULINGS: An imprecise invoice does not

Newsletter KR Group 06/2016

In this edition: End of the “first day of work syndrome”. Minimum hourly rate in civil contracts from 1 January 2017. Same minimum wage for new hires. Changes in employee secondment regulations. Changes in the State Fund for Rehabilitation of

Newsletter KR Group 05/2016

In this edition: Cash pooling agreement should be treated as loan agreement – the tax consequences. Another judgments regarding obligation to withholding tax. The date of signature decides, not the date when postman comes. RECENT TAX RULINGS: Loaner car should

Newsletter KR Group 04/2016

In this edition: The VAT rate for prepared meals – a general tax ruling of the Minister of Finance dated 24 June 2016., [ref. PT1.050.3.2016.156]. European Council introduces consolidated rules regarding taxation of vouchers. Tax relief for research and development.

Newsletter KR Group 03/2016

In this edition: Payment conducted in the form of setoff agreement is not considered as “payment” entitling for Vat refund in 25 days. Installations as the object of real estate taxation. Taxes and Friday 13th. RECENT TAX RULINGS: CJEU will

Newsletter KR Group 02/2016

In this edition: No VAT preference for built-in home appliances with turnkey apartment. Early termination of contract at the customer’s request is a service for VAT purposes. Minister of Finance’s general ruling on the tax point for construction and construction/installation

Newsletter KR Group 01/2016

In this edition: No personal income tax on reimbursement for use of private car for business trips. VAT received by shareholder transferring assets in kind is not taxable income. Limited partnership may be treated as a company. RECENT TAX RULINGS.

NEWS
BLOG

Brexit vs VAT

Brexit vs VAT Brexit – what’s next? For a long time the issue of Great Britain leaving European Union remains one of the hot topics on the international arena. The ‘divorce’ is scheduled for the end of March 2019. However,

Mandatory Split Payment mechanism.

Mandatory split payment mechanism. On 23rd January 2019 the European Commission published draft decision on authorising Poland to introduce a special measure derogating from Art. 226 of Directive 2006/112 / EC on the common system of value added tax. The

The White List (biała lista) –  hand or hurdle for VAT payers?

The Ministry of Finance presented further proposals for amendments regarding VAT. These pertain to the so-called White List aiming to help taxpayers verify their contractors. The White List is free, official, online electronic register of active VAT taxpayers. Fundamentally, the

SAF-T VAT changes coming in 2019

The Ministry of Finance has recently published the draft amending the VAT Act that implements, among others, the updated version of JPK_VAT (Polish Standard Audit File for VAT) structure (previously communicated as JPK_VDEK) that might replace VAT returns as of

MOSS – implementation of Directive 2017/2544

Taking a look at the latest project of changes in the Polish VAT Act with planned implementation of Directive  2017/2544 coming into force from 2019. What is the objective? Firstly, it is a step forward in the unification process of

Era of VAT returns comes to an end

JPK_VDEK is a working title of the new structure of the standard audit file which the Ministry of Finance is currently working on. The new file is supposed to completely replace the current JPK_VAT file and is going to include

New Polish VAT Rates Classification as of 2019

Starting from 2019, the Ministry of Finance in Poland plans to introduce a new classification of VAT rates. This will be related to the change in the way the goods and services are identified for the VAT purposes in Poland

Novela zákona o DPH v ČR od 1. 1. 2019

Od 1. ledna 2019 vstoupí v platnost nová pravidla pro uplatňování DPH, proto bychom vám chtěli v tomto článku přiblížit ty nejvýznamnější změny. Poukázky/vouchery Tím, že byla v červnu 2018 přijata nová směrnice EU pro oblast DPH, všechny členské státy musí do svého

Amendments to Czech VAT Act from 2019

As of 1st January 2019 the new rules of Czech VAT Act will enter into force. Below we explain the most important provisions in details. Vouchers As the EU VAT Directive regulating vouchers was adopted in June 2018 all Member

Lowered VAT rate for electronic publications coming from 2019?

On 2nd October 2018, the ECOFIN Council adopted a draft amendment to Directive 2006/112 / EC. The proposed changes are intended to enable EU Member States to decide on the reduction of VAT rates applicable to electronic publications (books, newspapers

Távolsági értékesítés – Magyarország

Távolsági értékesítés – Magyarország A digitalizáció az online értékesítést egyre inkább előmozdítja, ugyanakkor a cégeknek számos adminisztratív kihívással kell szembenézniük ezen a téren. A nemzetközi értékesítés soha nem volt egyszerű, kezdve a külföldi vásárlói kultúra megismerésétől egészen a logisztikai és

Distance selling in Hungary

Distance selling in Hungary The digitalization moves towards online selling and when it comes to the expansion of the company boundaries it has to face several legislative restrictions to comply with. International sales has never been easy, starting from capturing

“It’s just a FORMality” – issues with VAT-7 return for July 2018

Your company intends to apply for a VAT refund in Poland in the basic period? Then you must know that submitting correct VAT return for July may be ‘a bit’ more problematic than you hope. At the moment submitting VAT

Employees’ Capital Pension Schemes soon to be universal and mandatory for the employers

Employees’ Capital Pension Schemes (ECPS) – revised bill has been referred by Ministry of Finance for public consultation and inter-ministerial reconciliation. The core premise has not changed – ECPS will rely on conjoint input of the employer, employee and state

Limits on the Amount of Costs Related to Purchasing Certain Rights and Services

Pursuant to the Act of 27 October 2017 Amending the Acts on Personal Income Tax, Corporate Income Tax and the Act on Flat-Rate Income Tax on Selected Incomes Earned by Individuals, the document was compounded by means of adding Article

Real Estate Investment Trusts (REITs) and Tax Preferences

25 April 2018 saw the publication of a draft bill conferring tax preferences on companies investing in rental properties (a Polish equivalent of real estate investment trusts) and their shareholders. The bill governs matters related to companies investing in real

Revolutionary Changes to Income Tax on Values of Commercial Properties

Pursuant to the Act of 27 October 2017, the legislators introduced new regulations on the so called minimum income tax. The regulations have subsequently been compounded by another act and a set of self-amendments to cohere the rules applicable since

General Ruling on the Preparation of Tax Documentation by foreign Permanent Establishments

3 April 2018 saw the publication of a general ruling on transfer pricing dated 26 March 2018. The publication marked one of the latest steps in a series of rulings pertaining to regulations effective as of 1 January 2017. The

The Minister of Finance’s General Ruling on Updating Tax Documentation

On 3 April 2018 the Minister of Finance published a general ruling dated 28 March 2018 on the obligation of preparing, reviewing and updating tax documentation. In particular, the ruling applies to financial transactions such as loans, credits, the issuance

Exempting lessees from the obligation of restoring the lease subject to its original condition and the issue of VAT

Thanks to the efforts undertaken by our Tax Advisory Department, on March 14, 2018, we managed to obtain two favourable individual VAT rulings. The rulings (0114-KDIP1-2.4012.701.2017.3.RD, 0114-KDIP1-2.4012.140.2018.1.RD, 0114-KDIP1-2.4012.46.2018.2.RD) at issue pertained to two questions: Whether a situation in which a

Group rulings on tax law

The Ministry has provided a rationale behind changes to the sections of the Tax Ordinance Act related to issuing individual tax rulings. The amendments are to counter the abuse of tax rulings perpetrated by taxpayers operating within a group of

New Amendment to VAT Law – the relevance of proposed regulatory changes

On 27 February 2018 the website of the Government Legislation Centre featured a Draft Bill Amending the VAT Act and Certain Other Acts dated 13 February 2018. The latest amendments are to serve as the next step taken towards closing

Taking up Capital Shares and the Obligation to Prepare Transfer Pricing Documentation

An individual tax ruling of the Head of the National Revenue Information confirms the Ministry’s position on the obligation to prepare tax documentation in situation when a taxpayer takes up shares issued upon creating a subsidiary in exchange for a

General Ruling of the Minister of Finance on Transfer Pricing Obligations

Since 1 January 2017 the obligation to prepare transfer pricing documentation has been subject to verification pursuant to the new phrasing of article 9a of the Corporate Income Tax Act. However, upon publishing the new regulations, some controversies concerning their

Cash Contributions and the Creation of Revenue

On 1 January 2018 article 12, paragraph 1, subparagraph 7 of the CIT Act was amended. Article 12, paragraph 1, subparagraph 7 of the CIT Act (applicable until 31 December 2017) Article 12, paragraph 1, subparagraph 7 of the CIT

Deadlines for the preparation of transfer pricing documentation deferred

On 15 March 2018 The Ordinance of the Minister of Finance of 14 March 2018 on the Extension of Deadlines for the Performance of Certain Duties Related to Transfer Pricing Documentation became effective (Journal of Laws, item 555). The changes

Innovation box

Innovation Box is a new initiative pursued by the Ministry of Business and Technology with the aim of boosting Polish entrepreneurship. Similar solutions have already been adopted by some of the nations associated under the aegis of the Organization for

New registers of VAT payers made available by the Ministry of Finance

On 13 January 2018 the Act of 24 November 2017 Amending Certain Acts to Combat the Use of the Financial Sector to Commit Treasury Fraud became effective. The Act, also known as the STIR (the Computer System of the Clearing

New doubts concerning tax on commercial properties

On 1 January 2018 the Polish tax system was compounded by a new income tax structure, commonly referred to as the minimum tax on commercial properties or the shopping mall tax, pursuant to which the revenue on the ownership of

Creating a permanent establishment in Poland – Polish jurisprudence and BEPS 7

Considering the fact that tax laws often fail to keep pace with changing economies, OECD has pursued an initiative whose aim is to eliminate base erosion and profit shifting. As a result, a list of fifteen action points, commonly referred

Payments under rent guarantee and the issue of VAT

On 29 December 2017 the Head of the National Revenue Information (hereinafter: NRI) issued an individual ruling on payments made under a guarantee for a property owner to generate a predetermined amount of operating income (0114-KDIP1-3.4012.372.2017.2.MT). In the ruling the

Authorities to properly prove the abuse of the right to input tax

On 18 December 2017 the Supreme Administrative Court passed an important judgement which revoked the first instance ruling that was favorable to the tax authorities (Case File no. I FSK 352/16). A written statement of reasons for the judgment is

What new brings us another amended draft bill on supporting new investments?

Another amended draft bill on supporting new investments, supplemented with draft implementing regulations confirms the general direction in which the changes pursued by the Ministry of Finance and Economy are going. Despite a considerable delay in legislative works, the “package”

What to look for when completing the CIT-TP form?

Taxpayers whose revenue or costs have exceeded the equivalent of EUR10m will be obliged to submit a simplified statement of transactions with related entities (CIT-TP) along with the CIT-8 tax return. A template of such statement supplements the ordinance of

CIT in Hungary (included changes effective from 2018)

Hungary is more and more regarded by investors not simply as an ideal production location, but also as a remarkable “advanced manufacturing & innovation centre” of Europe. For businesses who are open or plan to invest in Hungary, it might

Bill about the changes in Rules of Taxation effective from 1st January 2018 in front of the Parliament of Hungary

After taking into consideration the incoming comments and suggestions following the call for public debate during the summer, the Hungarian Finance Minister submitted on 24th October to the Parliament for debate the two bills related to the rules and admistration

Electronic Road Transportation Control System (EKÁER): Request of the European Committee (EC) to harmonize it with the EU VAT Directive

The EC sent a letter of formal notice to Hungary in October, because according to the EC, the Hungarian EKÁER system infringes the EU VAT Directive as it provides for certain reporting and other administrative requirements primarily for legal entities

Amendments to the VAT act may be unfavourable for the financial industry

The justification for the proposal to amend the VAT Act indicates that the aim of repealing Art. 43(13)–(14) is to adapt the current VAT regulations to the VAT Directive in response to the judgment of the Court of Justice of

Council introduces consolidated rules on taxation of vouchers

As the current provisions of the VAT Directive do not ensure consistency in the tax classification of transactions involving vouchers, causing a divergence of interpretation across the EU, on 27 June 2016 the Council of the European Union adopted an

Installations as the subject of real estate tax

A definition of a structural object (obiekt budowlany) entered into force on 28 June 2015. The new law generates justified concern among taxpayers in respect of taxation of installations (which are not defined in the tax law). Now a structural

Tax relief for research and development

The media frequently cite economic experts on the need to increase innovation in the Polish economy in the coming years. One way this objective may be achieved is by amending tax laws (corporate income tax and personal income tax). On

Are contractual damages and penalties tax-deductible?

In the course of affairs, businesses are sometimes required to pay contractual damages or penalties. This may arise from a range of different situations, such as improper performance, failure to perform, or actions not directly connected to fulfilment of contractual

SAF-T, a new dimension of tax audits

Under new regulations (Art. 193a of the Tax Ordinance), if taxpayers maintain their books by computer, they will be required to provide the tax authorities with all or part of their accounting books and records in a unified format known as

VAT deduction ratio

Starting 1 January 2016, a new regulation applies on deduction of VAT in the case of purchases by taxpayers related to both business operations and operations outside the scope of VAT, particularly when the purchases cannot be precisely allocated to a

Bad debt relief

On 1 June 2005 the Polish parliament introduced bad debt relief, enabling VAT payers to decrease output VAT in case of overdue receivables. Since 2013, the regulation has remained almost unchanged. The prohibition against taking bad debt relief when the

Changes in property tax from January 2016

A bill amending the Act on Local Taxes and Fees was signed into law by the President of Poland on 25 July 2015. The new regulations regarding real estate tax will enter into force on 1 January 2016. The most important changes

Time is money: speeding up the financial close, consolidation and reporting

Tadeusz Robinski, Partner & CEO KR Group, ContactOnLine (British Polish Chamber of Commerce), number 18/2015

Post-transaction discounts booked when incurred

In a judgment of 25 March 2015 (Case II FSK 955/14), the Supreme Administrative Court held that post-transaction discounts received by a taxpayer should be included in the accounting period in which the company received the discount. That case related

Debt-for-equity swap via contribution in kind

Frequently, companies that hold receivables under loans they have granted to subsidiaries decide to convert them into shares. In such situations taxpayers may be uncertain whether this contribution to the company against new shares constitutes a contribution in cash or

NEWSLETTER

Newsletter KR Group 07/2018

In this issue: Employees’ Capital Pension Schemes (ECPS) soon to be universal. Revised bill has been referred by Ministry of Finance for public consulation and inter-ministerial reconciliation. Changes in minimum tax on commercial real estate    Amendments to the act

Newsletter KR Group 06/2018

In this edition: Revolutionary Changes to Income Tax on Values of Commercial Properties. The legislators introduced new regulations on the so called minimum income tax. The regulations have subsequently been compounded by another act and a set of self-amendments to

Newsletter KR Group 05/2018

W numerze: Group rulings on tax law. The Ministry has provided a rationale behind changes to the sections of the Tax Ordinance Act related to issuing individual tax rulings. The amendments are to counter the abuse of tax rulings perpetrated

Newsletter KR Group 04/2018

In this edition: Deadlines for the preparation of transfer pricing documentation deferred. On 15 March The Ordinance of the Minister of Finance of 14 March 2018 on the Extension of Deadlines for the Performance of Certain Duties Related to Transfer

Newsletter KR Group 03/2018

In this edition: Innovation box. Innovation Box is a new initiative pursued by the Ministry of Business and Technology with the aim of boosting Polish entrepreneurship. Similar solutions have already been adopted by some of the nations associated under the

Newsletter KR Group 02/2018

In this edition: Minimum wage. Tax-free exclusion. Change in limit of revenue-earning costs for creatives. Limits on tax exemptions. Income from shares received in incentive programmes. Download   MINIMUM WAGE The government raised the minimum monthly wage from PLN 2,000

Newsletter KR Group 01/2018

In this edition: CIT-TP. Taxpayers whose revenue or costs have exceeded the equivalent of EUR10m will be obliged to submit a simplified statement of transactions with related entities (CIT-TP) along with the CIT-8 tax return. Authorities to properly prove the

Newsletter KR Group 15/2017

In this edition: Supreme Administrative Court confirms tax authorities’ position on fixed establishment for VAT purposes. Costs of Advisory services to be excluded. First Occupation – VAT Act vs. VAT Directive. Supreme Administrative Court soon to decide on relief for

Newsletter KR Group 14/2017

In this edition: Reverse charge and the right to deduct VAT. VAT Act vs. VAT Directive. Purchaser’s right to deduct input tax arising from a VAT invoice issued by an inactive entity. Tax on the value of shares acquired in

Newsletter KR Group 13/2017

In this edition: Return to a lower retirement age. One account at ZUS (Social Insurance Institution). Download   RETURN TO A LOWER RETIREMENT AGE The act amending the retirement age in Poland entered into force on 1.10.2017, restoring the age

Newsletter KR Group 12/2017

In this edition: VAT on management contracts? Costs of intangible services and licensing fees to be limited from 2018. Support for new investments. New rules on thin capitalization from 2018. R&D centers to take new form. Download   VAT ON

Newsletter KR Group 11/2017

In this edition: What does split payment mean for taxpayers? Transport package to include plant oils. New tax likely to be effective from January 2018. CBC-P – new obligation for CIT payers. Download   WHAT DOES SPLIT PAYMENT MEAN FOR

Newsletter KR Group 10/2017

In this edition: Transfer pricing – new interpretative questions on the obligation to produce transfer pricing documentation. Changes in accounting for R&D expenses. First Occupation – another risk for investors? Certificate of residence – not always on paper. Obligatory “Cégkapu”

Newsletter KR Group 09/2017

In this edition: Proposed amendments to CIT Act. Favourable changes in amortization. Retail tax violates EU law. General interpretation of Minster of Finance on services auxiliary to financial services. Download   PROPOSED AMENDMENTS TO CIT ACT A proposal to amend

Newsletter KR Group 08/2017

In this edition: Changes from 1 June 2017 in the Administrative Court Procedure Law. Playing for time? Settling losses from prior years. Poland signs the Multilateral Instrument. New forms for transactions between related entities. New legislation in Hungary relating to

Newsletter KR Group 07/2017

In this edition: Amendments affecting pregnant women from 1 May 2017. Amendments concerning temporary employees starting 1 June 2017. Amendments in employing of foreigners. Download   AMENDMENTS AFFECTING PREGNANT WOMEN FROM 1 MAY 2017 Work at computers has been treated

Newsletter KR Group 06/2017

In this edition: Proposed VAT amendment — split payment. New reporting obligations — SAF-T for bank statements. Income tax consequences of transferring energy infrastructure. When does the VAT obligation arise for construction services? Download   PPROPOSED VAT AMENDMENT — SPLIT

Newsletter KR Group 05/2017

In this edition: Re-invoicing for construction services. Walls and tax classification of structures. Fit-out works and income tax. Relief for bad debts—Polish VAT Act violates EU VAT Directive. Download   RE-INVOICING FOR CONSTRUCTION SERVICES The extensive specialization in today’s economy

Newsletter KR Group 04/2017

In this edition: Costs for internally generated fixed assets are strictly correlated with the project. When is a manager working under a managerial contract a VAT payer? Sham invoices. VAT registration issues. Download   COSTS FOR INTERNALLY GENERATED FIXED ASSETS

Newsletter KR Group 03/2017

In this edition: New SAF-T structures – what about corrections for July-December 2016? Construction works – first doubts. R&D tax relief. Download   NEW SAF-T STRUCTURES – WHAT ABOUT CORRECTIONS FOR JULY-DECEMBER 2016? Starting from settlements for January 2017, small

Newsletter KR Group 02/2017

In this edition: SAF-T: circus of uncertainty continues. Two dates of acquisition of the same property and income tax obligation on disposal. Recent tax rulings. Download   SAF – CONTINUATION OF THE CAROUSEL UNCERTAINTY The Polish Ministry of Finance has

Newsletter KR Group 01/2017

In this edition: The end of partial work certificates. Internal company regulations. Social fund. Appeal to a court. Download   THE END OF PARTIAL WORK CERTIFICATES Employers are released from the duty of preparation of partial work certificates. An employee

Newsletter KR Group 09/2016

In this edition: Intragroup loans may impact VAT apportionment. Expenses paid outside of bank account are to be excluded from tax-deductible costs. Extension of VAT refund deadline to verify counterparties is not always allowed. RECENT TAX RULINGS: German company may

Newsletter KR Group 07/2016

In this edition: Ministry of Finance announces which costs of business trips can be deductible. Sale of debts as a form of tax optimization. Depreciation of building partially leased free of charge. RECENT TAX RULINGS: An imprecise invoice does not

Newsletter KR Group 06/2016

In this edition: End of the “first day of work syndrome”. Minimum hourly rate in civil contracts from 1 January 2017. Same minimum wage for new hires. Changes in employee secondment regulations. Changes in the State Fund for Rehabilitation of

Newsletter KR Group 05/2016

In this edition: Cash pooling agreement should be treated as loan agreement – the tax consequences. Another judgments regarding obligation to withholding tax. The date of signature decides, not the date when postman comes. RECENT TAX RULINGS: Loaner car should

Newsletter KR Group 04/2016

In this edition: The VAT rate for prepared meals – a general tax ruling of the Minister of Finance dated 24 June 2016., [ref. PT1.050.3.2016.156]. European Council introduces consolidated rules regarding taxation of vouchers. Tax relief for research and development.

Newsletter KR Group 03/2016

In this edition: Payment conducted in the form of setoff agreement is not considered as “payment” entitling for Vat refund in 25 days. Installations as the object of real estate taxation. Taxes and Friday 13th. RECENT TAX RULINGS: CJEU will

Newsletter KR Group 02/2016

In this edition: No VAT preference for built-in home appliances with turnkey apartment. Early termination of contract at the customer’s request is a service for VAT purposes. Minister of Finance’s general ruling on the tax point for construction and construction/installation

Newsletter KR Group 01/2016

In this edition: No personal income tax on reimbursement for use of private car for business trips. VAT received by shareholder transferring assets in kind is not taxable income. Limited partnership may be treated as a company. RECENT TAX RULINGS.

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