Key changes in tax regulations as of 1 January 2017
- Payment in cash - the expense is non-deductible.
- Lower corporate income tax (CIT) rate - 15%.
- Transfer prices. New limits with regard to capital links and the obligation to prepare tax documentation.
- Cancellation of tax exemptions for closed-ended investment funds.
- Withholding tax - the place of revenue is clarified - Poland is the country of tax residency for the revenue paying entity and the place of revenue if the entity making payments (e.g. for licenses, intangible services, dividends) is established or domiciled in Poland.
- Reverse charge in the construction industry. For construction services provided by subcontractors - VAT taxpayers to customers - VAT taxpayers.
- Reverse charge for a new group of goods. There will be transactions the subject of which will be processors, certain goods in the categories of gold, silver and platinum.
- Higher VAT exemption limit - the limit was raised from ... to PLN 200,000.
- Introduction of an additional restriction on refund of excess input tax over output tax within 25 days.
- Cancellation of quarterly VAT accounts by large taxpayers (sales over EUR 1,200,000 including VAT).
- Introduction of an additional tax liability. (Sanctions 20%, 30% and 100%).
- New regulations on VAT taxpayer registration and deregistration - the Act lays down the grounds for refusing entity registration as a VAT taxpayer.
- VAT taxpayer removal from the VAT register due to lack of sales or purchases for at least half a year.
- Removal from the register of EU VAT taxpayers. If a taxpayer has filed VAT returns for three consecutive months or a quarter, not showing any sales or purchases of goods or services with deductible tax.
- Electronic submission of VAT returns - from 1 January 2017. The obligation to file VAT returns electronically only for monthly periods will apply to taxpayers required to register as EU VAT taxpayers.
Andrzej Halat Director of Polfinans Sp. z o.o. Tax Advisor Reg. No. 10511