INTERTAX AUDIT SP. Z O.O.
TAX CONSULTANCY COMPANY
Main +48.225.512.570
Fax: + 48 228.263.266
e-mail: audit@intertax.pl
1. New Directive regarding VAT claim in EU countries From the 1st of January 2010 Directive 2008/9/EC has come into force in 27 European Union countries. 2. Change of EU rules since 1st January 2010 regarding place of supply of services. From the 1st of January 2010 Directive 2006/112/EC has been changed by Directive 2008/8/EC.
Taxes in Poland
PERSONAL INCOME TAX
Personal income tax encompasses all incomes of natural persons, excluding revenue from:
- agricultural activity, with the exception of revenue from special branches of agricultural production
- forestry economy in the meaning of the Forestry Act and Act on the Designation of Agricultural Land for Afforestation
- subject to the provisions on inheritance and gifts
- activities that cannot be the object of a legally effective contract (e.g. fencing)
- a division of a joint property of spouses due to the cessation or limitation of their property co-ownership.
Within the personal income tax there are two forms of taxation:
- By general terms
- By lump sum
The basic rates for taxpayers whose income is subject to taxation under general terms were defined in accordance with the progressive tax scale, differentiating two income thresholds. Since 2009 the amount of the tax rates is 18%, 32%.
| Tax base (on the annual basis) | Amount of tax: | |
| Above | Up to | |
| 85.528 | 18 % minus the amount of 556,02 PLN | |
| 85.528 | 14.839,02 PLN plus 32 % of the excess above 85.528 PLN | |
An employer deducts a 18% tax advance every time remuneration is paid. A tax-payer has to submit a tax declaration that covers income of the previous year. A declaration has to be delivered until the 30th April of the consecutive year. (State as of 1st January 2009) In 2009 the rates of lump sum income tax on some other revenues, for example revenue from money capitals, amount to 19% or 10%.
CORPORATE INCOME TAX
Corporate income tax encompasses the total revenue of legal persons, organisational units having no legal personality, with the exception of civil, registered, limited and limited joint-stock partnerships. This tax is also levied on tax capital groups and companies in the proces of being established.
The payers of corporate income tax are taxed with a flat rate tax. In recent years, the rate of this tax was gradually reduced from 40% in 1996 to 27% in 2003. In 2004, the rate of this tax is set at 19%. Corporate income tax constitutes a source of revenue of the State budget. A certain share in this tax also belongs to the budgets of territorial self-government units.
Tax on acts in civil law was regulated by the Act of 9 September 2000 on Tax on Acts in Civil Law.
The tax liability is borne by natural persons, legal persons and organisational units having no legal personality being the parties of acts in civil law and companies having legal personality in the case of increase in initial capital.
Stamp duty is regulated by the Act of 9 September 2000 on Stamp Duty Act. It constitutes a lump sum charge for the activities performed by the authorities of the public administration (government and local government) covering acceptance of application or performance of a public act upon notification or request of the party concerned and the issue of a certificate or permission upon request of the party concerned.
The liability to pay stamp duty is borne by natural persons, legal persons and organisational units having no legal personality if they issue (draw up) documents, etc.
Tax Identification Number
Tax Identification Number is issued by the Head of Tax Office and can be received by:
Natural persons
Legal Persons
Organizational units having no legal personality, which are taxpayers by virtue of separate acts
Entities, which are tax payers pursuant to separate acts, and in particular establishments (branches) of legal persons and tax remitters
Entities being, according to separate provisions, remitters of social insurance and health contributions.
NIP shall be included in all documents concerning fulfillment of tax liabilities.
(According to the Act of 13 October 1995)
TAX ORDINANCE
The Tax Ordinance includes a set of statutory terms for any specific tax, tax obligation, tax liability, taxpayer, tax remitter, tax collector, and it regulates the issues concerning territorial and material competence of the tax authorities.
The Act provides for the course of arising tax liabilities, their enforcement, time limits for payment, rights and obligations of legal successors and transformed entities, tax responsibility of third parties, terms and way of charging default interest, ways of expiry of tax liabilities, their limitation and matters connected with overpayments.
The Tax Ordinance lays down detailed regulations concerning tax proceeding. Their aim is to ensure an appropriate course of proceeding before the tax authorities and appropriate application of provisions of material law.
The provisions of the said Act also regulate the institution of desk audits and tax audits.
PENAL FISCAL PROCEEDINGS
According to the Penal Fiscal Code:
Art. 53. § 2. Fiscal offence is an act prohibited by the Code under penalty of fine in daily rates, restriction of liberty or imprisonment.
§ 3. Petty fiscal offence is an act prohibited by the Code under penalty of fine defined in amount, if the amount of the reduced or at danger of reduction liability in public law or value concerning object of act does not exceed five times the amount of the lowest monthly remuneration in the time of its perpetration. Petty fiscal offence is also another prohibited act if the Code envisages so. (Act of 10 September 1999 on Fiscal Penal Code, Dz. U. No. 83, item 930 with subsequent amendments)
Art. 17. § 1. The court may give its consent for assuming liability voluntarily if the guilt of the perpetrator and circumstances of the perpetration of a fiscal offence or fiscal petty offence does not raise any doubts, and the perpetrator has:
paid off a liability in public law if the prohibited act constitutes reduction or potential reduction of such liability
paid off the amount which is equivalent to the minimum fine charged for a given prohibited act
has given consent for forfeiture of objects at least in the compulsory scope, and if such forfeiture of objects is impossible – has paid off their equivalent value in cash.
paid off a lump sum equivalent to the cost of proceedings.
Art. 18. § 1. The court, giving consent for assuming liability voluntarily, adjudicates:
a fine of an amount not exceeding the amount that has been already paid by the perpetrator
a limited forfeiture of objects, in which the perpetrator has given their consent to, or in the case of impossibility of their forfeiture – paid off their equivalent value in cash.
Art. 137. § 1. In proceedings by penal orders, unless the Code states otherwise, the investigation body or its representative authorised to charge a fine by means of penal order may impose it only when the perpetrator and circumstances for perpetration of fiscal petty offence do not raise any doubts, and it is not necessary to impose a penalty that is severer than that provided forin Art. 48 § 2. The condition for imposing a fine in the course of proceedings by fiscal order is that the perpetrator of petty fiscal offence should give their consent for accepting a fiscal order.