Ladies and gentlemen,
In October, our tax department focused on several leading topics that we can distinguish and have a common denominator. The turn of October and November is also the upcoming changes in CIT.
First of all, the widely discussed solutions related to the anti-crisis shield as a special act preventing the effects of COVID-19 as a topic that is still current and leading.
The topic of help from anti-crisis shields
Anti-crisis shield – what else is worth taking advantage of
Since March 2020, anti-crisis shields have been successively implemented in order to offset the economic effects of the Polish economy caused by many restrictions and other activities caused by the COVID-19 epidemic. Despite the fact that there are no new versions of the shield yet, you can still use the help offered. Tax relief for donations, tax relief as defined in the Tax Ordinance, 0% VAT rate, tax exemption on revenues from commercial buildings, bad debt relief, co-financing of employees’ salaries and a few other solutions, which we write about:
Solutions of the Polish government during the pandemic – Shield, its subsequent settlement and verification of aid
In order to ensure the correctness of the aid used, the entrepreneur may perform the necessary actions in advance, which may protect him from potential irregularities. For this purpose, the taxpayer may, before the inspection takes place, check whether the expenses financed under the grant meet certain conditions and whether all formalities have been completed. Moreover, the taxpayer should document all information and maintain full completeness of data that may constitute audit evidence. The entrepreneur should also exercise full supervision over all aid expenses, and should also carry out a premature internal control of his own enterprise and on this basis verify whether some irregularities have taken place.
Tax settlement of received forms of financial support
Each of the forms of assistance received will have to be properly accounted for. Some are explicitly mentioned in the Act, but not everything. The Ministry of Finance also issued an official announcement in which it informs that any expenses financed with the aid granted may be qualified as tax deductible costs on general terms, provided that the requirements of the Corporate Income Tax Act are met.
It has been some time since the introduction of the anti-crisis shields, and therefore some individual interpretations are already appearing – entrepreneurs want to know how it works. Among other things, the returnable subsidies will not be taxable income, and the Company has the right to include the expenses for running the business as the KUP in accordance with Art. 15 of the CIT Act.
In our articles, we also discussed excise topics
Computerization in excise duty
The proposed changes to the draft of the amended act seem promising in terms of simplifying the application of the existing rules. An electronic e-DD document is to be used for this process, which is to monitor the deliveries of excise goods.
The scope of the inspection will be extended to include carbon products, the delivery of which is generally exempt from excise duty. However, it should be noted that shipment documentation will only be necessary for final entities purchasing large quantities of coal products.
In addition, the rules for controlling energy products through the pipeline are to be regulated, the documentation of which will be made via an automated administrative document, e-AD, which facilitates work by replacing previously used – paper documents.
Excise tax exemption for energy production by entrepreneurs
In the article, we discussed extensively the areas of energy excise relief. First of all, it is necessary to analyze what scope the offered excise exemption on energy production covers. This is defined in Art. 30 sec. 6 of the Excise Duty Act, where it was indicated that electricity consumption in the production process is exempt from excise duty, as well as energy consumption in order to maintain the production process. Therefore, the exemption may also apply to the scope of energy necessary for the operation of the generator cooling device or the energy used to restart the generator during its standstill.
As for renewable energy sources, to accept the exemption, you will need an energy certificate of origin.
Electric cars in tax law
Electric car for an employee in the light of PIT tax
Electric vehicles are still a relatively new topic and will raise many doubts. The current practice of settling traditional cars is well known and clear. As confirmed by the tax authority of the issued interpretation, the monetary value of the free use of an electric company car for private purposes will be a monthly value of PLN 250 for vehicles with an engine capacity of up to 1.6 liters and PLN 400 per month for vehicles with an engine capacity exceeding 1.6 liter. As he points out, the act does not contain any specific regulations for determining the appropriate monetary value of the lump sum for this type of car. However, when adopting the applicable legal regulations, if it is considered that an electric vehicle has an engine capacity of 0, it is in the range of up to 1.6 liters, so the amount of benefit that an employee is entitled to for using an electric company car for private purposes is PLN 250.
Electric car charging as a service
Doubts concern the recognition of charging activities as a supply of goods, or whether they should be treated as a provision of services, and this will be important in the context of the understanding of the VAT Act. The authorities indicate that from the perspective of an electric car user, the most important thing is to charge the vehicle, i.e. to collect the right amount of energy necessary to drive it. The article presents the points of view of the authority and courts. The provision of charging is a broader concept than the sale of energy, the access to electricity itself is important, but it is not the electricity consumption that is the dominant element of the provision, but the method of its consumption.
Controversial changes in CIT are getting closer
Changes in income tax from 2021
From January 2021, many changes are waiting for us, often described as revolutionary. First of all, it is the taxation of limited partnerships with the corporate income tax. This is nominally a 19% or 9% additional tax burden, which sparked the greatest excitement in the industry. A definition of a real estate company is also introduced, which in its assets is to contain more than 50% of the value of real estate, and the revenues from them are to be at least 60%. More details in the article:
Confession of the largest taxpayers
Art. 27c, as another tool to increase the transparency of the largest companies. Namely, taxpayers from TCG groups and those generating revenues exceeding EUR 50 million per year will be obliged to publish their tax policies on their own websites. Internal units will have their hands full of additional work, preparing a summary of tax activities and future, anticipated activities or restructuring.
Polish definition of a promoter and an assistant and an “intermediary” in the Directive
The legislator, implementing the directive into the Polish legal system, made a separation, it can even be said that the EU definition of an “intermediary” was significantly extended to include the promoter and supporting entity. Such a division is not provided for in the MDR directive, which entered into force on June 25, 2018. The move on the differentiation of entities arose when it turned out that it would be necessary to re-report the diagrams, because Poland its format (schema) was significantly different from the EU.
Online intermediation services regulation 2020/1030 – what should you be aware of?
The regulation is addressed in particular to providers of online intermediation services, and to a small extent also applies to Internet search tools, which are responsible for providing and offering services to users for business purposes. It is therefore worth explaining who is defined as the provider of online intermediation services. It is any natural or legal person who is responsible for the provision of internet brokerage services and who also offers its provision to a business user. It is also worth defining here the concept of a business consumer, who is defined through the use of a technical platform (e.g. a created application).
On the other hand, the Regulation excludes the payment service or internet advertising. The adoption of the Regulation involves, above all, additional obligations on the part of entities responsible for internet platforms.
Finally, we presented several solutions of some kind of protection against negative tax consequences
The article presents tools and instruments that will allow you to protect yourself against negative tax consequences. Starting with the simplest solutions, such as Binding Rate, Tariff and Excise Information, individual interpretations. And ending with the Advance Pricing Agreement (APA), which will allow you to forget about transfer pricing documentation for several years.