Implementing JPK_CIT is expected to be a revolution tantamount to the introduction of the JPK (Jednolity Plik Kontrolny) system, but in the context of Corporate Income Tax. This will empower authorities to systematically detect inconsistencies in taxpayers' settlements, enabling more precise elimination of expenses which do not constitute deductible costs, or identifying revenues unrecognized for tax purposes.
According to Article 9(1c) of the CIT Act, which is to enter force on January 1, 2025, taxpayers maintaining accounting books will be required to submit them to their tax office after the end of the tax year, within the deadline for filing the CIT-8 or CIT-8E declaration (usually by the end of the third month following the end of the tax year). In other words, the first JPK_CIT will be submitted in 2026.
Provisions concerning JPK_CIT have been modified in recent years. At first, this obligation was to enter force as early as 2023 and consist of monthly or quarterly submission of JPK_CIT to the tax authorities. Initially, the regulations were to apply immediately to most corporate income taxpayers - with the exception, for example, of entities subjectively exempted from CIT based on Article 6(1) of the CIT Act. The scope of data due for reporting was made more specific by the Minister of Finance by the Ordinance of November 29, 2023, on additional data supplementing the accounting books to be submitted under the CIT Act.
The new obligations concerning the introduction of JPK_CIT will be implemented according to a specific schedule for tax years starting after:
- December 31, 2024 - for large CIT taxpayers (revenues exceeding 50 million EUR) and tax capital groups.
- December 31, 2025 - for other CIT and PIT taxpayers required to submit JPK_VAT.
- December 31, 2026, for all other groups.
The draft regulation defines the scope of additional data which must supplement the JPK_CIT. According to the document published by the Minister of Finance, the transferred data will have to be supplemented with:
1. identification data of the taxpayer's counterparty and its Tax Identification Number (NIP) (if granted) and:
- First Name and Surname (when the counterparty is a natural person, not conducting business).
- First name and Surname, as well as an additional designation which the entrepreneur includes in the company (when the counterparty is a natural person, running a business) or the full name of the counterparty (in other cases).
2. in the case of invoices serving as accounting evidence – the identification number of the invoice in the National e-Invoicing System (if assigned)
3. tags identifying account numbers, listed according to the dictionary of tags identifying account numbers for:5
- banks – specified in attachment 1 to the regulation.
- insurance companies and reinsurance companies – specified in attachment 2 to the regulation.
- entities referred to in Article 3(2) of the Act of April 24, 2003, on public benefit activities and volunteering (Journal of Laws of 2023, item 571), preparing financial statements in accordance with attachment 6 to the Act of September 29, 1994, on accounting (Journal of Laws of 2023, items 120, 295, and 1598) – specified in attachment 3 to the regulation.
- investment funds – specified in attachment 4 to the regulation.
- brokerage houses – specified in attachment 5 to the regulation.
- cooperative savings and credit unions – specified in attachment 6 to the regulation.
- other entities – specified in attachment 7 to the regulation.
4. data confirming the acquisition, creation, or deletion of the fixed or intangible asset from the register:
- for invoices constituting accounting evidence, the number identifying the invoice in KSeF (if assigned).
- information on the type of proof of purchase, creation or deletion from the records.
- the taxpayer's counterparty identification number.
5. amount, type and sort of difference between the balance sheet result and the tax result.
6. the amount and type of taxable income in respect of taxpayers taxed on company income on a flat rate basis.
KSeF and JPK_CIT
The draft regulation also pertains to the National e-Invoicing System. It will require indicating the invoice identification number in KSeF (for invoices serving as accounting evidence). According to the Ministry of Finance's draft regulation, JPK_KR will also be required to include differences in revenues and costs for balance sheet purposes compared to revenues and costs for tax purposes, as well as the basis for income tax assessment in the case of opting for the flat-rate tax on company income (so-called Estonian CIT) by taxpayers.
Until January 12, 2024, the Ministry of Finance held a tax consultation on the new logical structure of JPK_CIT. The consultation raised concerns about the difficulty for taxpayers to adapt to JPK_CIT due to the parallel implementation of KSeF. The consultees also reported an overly detailed scope of the information to be reported, requiring a major overhaul of IT solutions companies already have in place.
The new reporting requirements for the initial taxpayers are expected to come into effect as early as 2025. It is advisable to start preparing for the planned changes as soon as possible.