What investors & companies need to know!
What tax changes will 2021 bring in Poland? What should investors pay attention to in the future – and which decisions will benefit them? TPA’s experts have summarized the most significant tax news for Poland for you. The beginning of 2021 has seen changes mainly in the CIT area. Please see below for the overview of the most important changes: Poland Tax News 2021!
1. Income Taxes (CIT and PIT)
As from 1 January 2021 limited partnerships having their registered office or place of management in the territory of Poland and general partnerships having their registered office or place of management in the territory of Poland, in which general partners are not only natural persons have become CIT taxpayers. This does not apply to general partnerships if they submit to the tax office, within a statutory deadline, a relevant information on PIT taxpayers who are entitled, directly or via entities non-taxable for income tax purposes, to a share in the partnership‘s profits or if they update such information should the need arise. Moreover, limited partnerships may decided to postpone becoming CIT taxpayers to 1 May 2021.
Taxpayers whose revenue exceeded EUR 50 million in the given tax year and tax capital groups are obliged to prepare and publish a report on the tax strategy executed in the given tax year. The report must take into account the nature, type and size of the taxpayer‘s business activity and include detailed information. The report should be presented by taxpayers within 12 months from the end of the tax year.
Additional, a so-called “Estonian CIT” has been introduced at the beginning of 2021. The “Estonian CIT’s” rate amounts to 0 % for companies that will allocate profits for the development of their activities and meet additional criteria. Otherwise the rates of the “Estonian CIT” amounts to 25 %/15 % (for small taxpayers) of a specially-calculated tax base, with the possibility of its lowering.
A definition of a real estate company has been introduced into the Polish tax law. It is a company in which as at the last day of the previous fiscal year at least 50 % of assets constituted, directly or indirectly, the value of real estate located in Poland, and the value exceeded PLN 10.000.000. According to the new mechanism, a real estate company is a remitter of the tax on the sale of shares in this company. In the new regulations, the limit of revenues entitling a taxpayer to apply the reduced 9 % CIT rate has been increased from EUR 1.2 million to EUR 2 million.
The extension of the group of taxpayers entitled to the flat-rate income tax has been achieved through an increase in the revenue limit from the current EUR 250 000 to EUR 2 million. Last but not leas, the definition of freelance professions that can use flat-rate has also been changed.
2. VAT
As of January 1, 2021 Poland has adopted a number of changes with the aim to simplify the VAT compliance for Polish taxpayers,– a so-called SLIM VAT package.
The deadline for deducting input VAT on an ongoing basis has been extend up to a total of 4 periods in case of monthly settlement periods and in the case of quarterly taxpayers up to 3 settlement periods. Additionally, the possibility of deducting input tax resulting from invoices documenting the purchase of accommodation services for resale has been introduced.
As far as exports of goods are concerned, the deadline for the actual export to take place has been extended from 2 to 6 months in order to apply the 0 % rate on the advance payment in the export of goods.
The SLIM VAT package also means that taxpayers are able to select the same rules of currency conversion for VAT purposes as for the income tax revenue calculation. Additionally the supplier is no longer obliged to receive the confirmation of acceptance of the correction invoice from the customer in order to decrease the tax base and output VAT
