Not quite Estonian corporate tax

Prime Minister Mateusz Morawiecki has announced plans to introduce so-called “Estonian corporate income tax” in Poland and presented the key assumptions of the scheme. If adopted, the reform would come into force from the new year. What are the benefits for taxpayers from this change? Is the Estonian CIT to be introduced into the Polish tax regulations really similar to the original scheme used in Estonia?

Changes in taxpayers’ dealings with the tax authorities and administrative courts: Shield 3.0

Many changes affecting taxpayers’ relations with tax authorities and the administrative courts have been introduced as part of the rollout of successive versions of the Anti-Crisis Shield. Under Shield 3.0, which entered into force on 16 May 2020, taxpayers, tax authorities and the administrative courts are emerging from hibernation.

The Ministry of Finance is open to comments and suggestions on the Cooperation Programme

Recently we wrote about the planned implementation of the Cooperation Programme, under which selected taxpayers would be given the opportunity to cooperate with the head of the National Treasury Administration on a permanent basis. This cooperation would, among other things, enables taxpayers to reach decisions on tax strategy in consultation with the authority competent for verifying the correctness of the taxpayer’s settlements. Until 26 May 2020, taxpayers may submit comments and suggestions to the Ministry of Finance on selected documents relevant to the programme.

Discontinuation of projects due to the COVID-19 pandemic: Tax implications

One of the consequences of the pandemic and the resulting economic crisis may be the need for some taxpayers to discontinue projects. Do the Polish tax regulations allow for settlement of expenses incurred for discontinued projects under the CIT Act? Will the taxpayer have to make an adjustment of input VAT on expenses incurred in the course of work on such projects?

Cross-border transactions in times of pestilence

The difficulties in international transport caused by the pandemic may have a major impact on VAT settlements of Polish exporters. These complications may carry over to the possibility of applying the 0% VAT rate, thus affecting taxpayers’ cash flows.

New “fee” from media streaming giants: Support for Polish cinema or a hidden digital tax?

On 28 April 2020 a government bill including the proposed “Anti-Crisis Shield 3.0” was filed with the parliament. One of the proposals is to amend the Film Act to require providers of on-demand audiovisual media services to make quarterly payments to the Polish Film Institute equal to 1.5% of their revenue from fees for delivering content or for transmission of commercial messages, whichever figure is higher in a given payment period. The duty to pay the new “fees” would enter into force on 1 July 2020.