Foreign undertakings, universities and other entities referred to in §2(15)–(16) of the Regulation of the Minister of Finance, Funds and Regional Policy of 28 December 2020 (Journal of Laws 2020 item 2456) which have achieved income from economic activity in the PLN equivalent of at least EUR 3m are required to notify the head of their current tax office, in writing, by 15 October 2021, of the change in jurisdiction of the tax offices. The taxpayer must also submit such notification when it ceases to meet the conditions referred to above, and the competent tax office will again be determined by the general rules, but in that case the exclusion may take place following two subsequent tax years in which these conditions have not been met.
How to determine the jurisdiction of the new tax office?
Entities with net income/turnover of EUR 3m to EUR 50m are subject to the specialized tax office with jurisdiction based on the location of their registered office. However, for taxpayers with a net income/turnover exceeding EUR 50m, the relevant authority is the head of the First Masovian Tax Office in Warsaw. A detailed list of the relevant tax offices is included in an annex to the regulation.
Determining the amount of turnover
The amount of income is determined on the basis of data for 2020 (or if the tax year does not coincide with the calendar year, on the basis of data for the last tax year that ended no later than in 2020). The conversion of amounts in euro is based on the average exchange rate announced by the National Bank of Poland on the last day of the tax year. The equivalent of EUR 3m based on that exchange rate at the end of 2020 was PLN 13,844,400, and the equivalent of EUR 50m was PLN 230,740,000.
The methods for determining income are set out in §3 of the regulation and, as a rule, are determined based on the statement of income (or loss) in the tax year, but if this is not possible, and other methods referred to in this provision cannot be applied, it should be established on the basis of VAT declarations. In that situation, the turnover is the net amount of delivered goods and services, including delivery of goods and services in Poland, delivery of goods and services outside Poland, intra-Community supply of goods, and export of goods, based on VAT declarations for January through December or four quarters of a given tax year, drawn up on the basis of the VAT Act of 11 March 2004.
Declarations, records, and summary information for December 2021, to be submitted in January 2022, e.g. the JPK_V7M file for December 2021, will have to be submitted to the tax office that is competent following the change in tax offices.