Major new tax regulations in 2020.
I. Personal income tax and corporate income tax - common provisions.
1. Higher limit of revenue for a small taxpayer status.As of 2020, this will be last year’s revenue together with output VAT equivalent to EUR 2,000,000: PLN 8,747,000. The small taxpayer status entitles, for example, to 9% CIT rate. The rate applies to revenue (income) other than from capital gains - in the case of taxpayers whose revenue earned in a tax year did not exceed the zloty equivalent of EUR 1,200,000, i.e. PLN 5,109,000.
2. Limit on recognition as deductible expenses the expenses paidby a bank transfer to a bank account of a customer - active VAT payer, the bank account not being “white listed” on the Ministry of Finance website, and simultaneously, the transaction amount not exceeding PLN 15,000.
3. It will not be a deductible expense if a cost is paid without the mandatory split payment mechanism for transactions exceeding PLN 15,000.
4. Income tax relief for bad debts. Similar provisions as in VAT. If a counterparty - debtor fails to pay within 90 days from the due date, the creditor may reduce the taxable base or increase the taxable loss. However, in the event of non-payment, the debtor will be required to increase the taxable base or reduce the taxable loss.
1. As of November 2019, a split payment mechanism was introduced; it is an obligation to pay VAT to a counterparty to a dedicated established bank account for VAT purposes, on an invoice evidencing sales of goods or provision of services listed in Annex 15 to the VAT Act, if at the same time the gross transaction amount exceeds PLN 15,000.
2. Invoices with fiscal receipts for VAT taxpayers. An invoice may be issued with a receipt for an entrepreneur if the receipt has the buyer's NIP (Taxpayer ID) number.
3. New rules for documenting Intra-Community Supplies; in order to apply the 0% VAT rate, it will be necessary for the buyer to provide the supplier with the identification number for EU transactions and to submit correct summary information. As of 1 January 2020, a concept of presumption is introduced, namely, that the goods subject of ICS will be deemed to be exported from the territory of one Member State to another. The method of documenting ICS (the type of documents required) will depend on who arranges the transport of the goods.
4. As of 1 July 2020, all taxpayers will send SAF together with the VAT return; there will be one dispatch of SAF data to the Tax Office.
III. Tax Ordinance
Payment of VAT and income tax liabilities to an individual tax accountEach taxpayer will be required to pay tax liabilities (including value added tax) to the individual tax account assigned to him, the so-called tax micro-account, the number of which can be found at any tax office or by using the tax micro-account generator provided by the Ministry of Finance on the website https://www.podatki.gov.pl/generator-mikrorachunku-podówowego/ by entering the following data:
PESEL, if the taxpayer is a natural person and:
- is not engaged in business activites or
- is not registered VAT taxpayer;
- is engaged in business activites or is a VAT taxpayer or
- is a pyer of taxes, social insurance and/or health insurance contributions
IV. Labor law
V. Other provisions
Most commercial companies must report and update information about their beneficial owners to the Central Register of Beneficial Owners (CRBR). The register has been operating since 13 October 2019. It is an IT system.
In the filing, companies must name their beneficial owners, not customers. Beneficial owner of a company is a natural person or natural persons:
- who exercise direct or indirect control over the company through their powers which arise from legal or factual circumstances, which enable them to exercise decisive influence over the company's transactions or activities,
- on whose behalf economic relationships are established or an occasional transaction is carried out.
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