The significant changes in the jurisdiction of tax authorities entered into force on 01.01.2021. The changes were introduced by the regulation of the Minister of Finance, Development Funds and Regional Policy of 28.12.2020 on certain taxpayers and tax remitters for whom activities are carried out by the head of a tax office other than the locally competent one, and by the regulation of the Minister of Finance, Development Funds and Regional Policy of 28.12.2020 amending the regulation on the jurisdiction of tax authorities.
As a consequence of the above changes:
1) an entity with foreign capital which, as part of its business activities, achieved net revenue from the sale of goods, products and services of less than EUR 3 million, and which so far has been under the jurisdiction of a specialized (the so-called “large”) tax office competent with regard to its seat, is – from 01.01.2021 – under the jurisdiction of a general tax office (the so-called “small” tax office);
2) an entity which, as part of its business activities, achieved net revenue from the sale of goods, products and services of at least EUR 3 million and not exceeding EUR 50 million, is under the jurisdiction of a specialized (the so-called “large”) tax office competent with regard to its seat. In this case, the share of foreign capital in a given entity is not taken into account;
3) an entity which, as part of its business activities, achieved net revenue from the sale of goods, products and services exceeding EUR 50 million, is under the jurisdiction of the First Mazovian Tax Office in Warsaw. In this case, the share of foreign capital in a given entity is not taken into account.
From 01.01.2021 limited partnerships will become taxpayers of corporate income tax. Until then, limited partnerships will remain tax transparent and only their partners will be taxed. Whereas from that date limited partnerships will be taxed similarly to limited liability companies. The reduced tax rate will be 9% – if annual revenues are not more than EUR 2 million, and 19% in other cases. In addition to income taxation of the partnership itself, the partnership’s profits paid to its partners will be taxed as well. Partners of limited partnerships will be subject to taxation on their income in relation to their share in the partnership’s profit.
These changes were introduced by the Act of 28.11.2020 amending the act on personal income tax, the act on corporate income tax, the act on flat-rate income tax on certain revenues earned by natural persons and some other acts (Journal of Laws of 2020, item 2123, of 30.11.2020).
The possibility to postpone the date
The limited partnership may decide that the amended provisions will apply to this partnership and both the revenues and the costs related to participation in this partnership from 01.05.2021. In such a case, the limited partnership obtains the status of a corporate income tax payer as of 01.05.2021.
Important: The decision to make use of the abovementioned possibility must be taken by 31.12.2020. As a rule, if nothing else results from the deed of limited partnership, this decision must be made by the partners in the form of a resolution.
The requirement to close the accounting books
In any case, the limited partnership is obliged to close the accounting books on the day
According to art. 13a sec. 1 of the Act of March 8, 2013 on counteracting excessive payment delays in commercial transactions, which entered into force on January 1, 2020, entities with a turnover exceeding EUR 50 million (even if they are not large entrepreneurs) and tax capital groups, regardless of revenues, are required to submit electronically to the Ministry of Development, Labor and Technology, by 31 January of each year, a report on payment dates in commercial transactions used by these entities in the previous calendar year. However, it should be remembered that the report covers the previous calendar year, regardless of the tax and balance sheet years adopted in the company.
The abovementioned report must contain the following data:
1) name of a company and tax identification number;
2) the value of payments received in the previous calendar year within a period:
• not exceeding 30 days,
• from 31 to 60 days,
• from 61 to 120 days,
• exceeding 120 days
– from the date of issuing an invoice or a bill confirming the delivery of goods or the performance of service;
3) the value of payments made in the previous calendar year within a period:
• not exceeding 30 days,
• from 31 to 60 days,
• from 61 to 120 days,
Companies often forget that confirming balances is more than just checking amounts. In particular, problems may arise in the case of disputed or doubtful claims.
What is included in the balance confirmation
The Accounting Act requires, in principle, confirmation of the balance of receivables. On the other hand, the Accounting Act does not require sending confirmation of the balance of liabilities.
As at the balance sheet date, all assets and liabilities should be inventoried. Entities perform the annual inventory in three ways, depending on the asset or liability they are dealing with. And so, the annual inventory is carried out by way of:
• physical inventory,
• balance confirmation,
• comparison of accounting data with relevant documents.
The method of balance confirmation involves obtaining statements from contractors and banks on the items appearing in the accounting books. This method is used to determine the balances of financial assets held in bank accounts or held by other entities, receivables, including loans, and own assets entrusted to contractors.
However, as practice shows, entities send requests to their contractors for confirmation of the balance of liabilities, assuming that this is a solution that allows to reliably verify the balances.
The lack of balance confirmation
As we have already indicated in our Newsletter No. 30/2019, every company entered into the National Court Register, e.g. all limited liability companies, shall report…
As of October 13th, 2019, companies must submit information on beneficial owners to the Central Register of Beneficial Owners (hereinafter: “the Register of Beneficiaries’’). Those companies that have been registered in the National Court Register before…
On 04.05.2019 the Act of 21.02.2019 implementing the GDPR came into force.
The Amendment refers to over 160 legal acts, among which the most important for each employer are the labor code and the act on the company…
We would like to remind you that from 01.07.2019 the first group of entities (those that as at 31.12.2018 employed at least 250 employees) will be subject to the Act of 04.10.2018 on employee capital plans (PPK).
The National Labor Inspectorate will be controlling companies with regard to the employee capital plans in 2019
The information published by the National Labor Inspectorate shows that due to the entry into force of the Employee Capital Plans Act in 2019, the audits of the obligation to conclude contracts for conducting the Employee Capital Plans and contracts for the management of the Employee Capital Plans…
On July 13th, 2018, the Act of March 1st, 2018 on Counteracting Money Laundering and Terrorism Financing entered into force (Journal of Laws of 2018, item 723). The Act aims to implement the requirements set out, inter alia, in Directive (EU) 2015/849 of the European Parliament and of the Council of May 20th, 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Directive of the Commission 2006/70/EC.
For the companies conducting business activity in Poland, the most significant change that will take effect from October 13th, 2019, as introduced by the abovementioned act, is the creation of the Central Register of Beneficiaries (hereinafter: “Register of Beneficiaries”) and obligations related to this that will be borne by all companies. To submit information on actual beneficiaries and their updates to the Register of Beneficiaries, will be obliged:
Please be kindly informed that the legislative process related to the entry into force of the revolutionary Act on Employee Capital Plans (hereinafter “PPK”) is coming to an end. If nothing extraordinary happens, it should be assumed that the act will become effective from January 1, 2019.
Employee records no longer have to be kept in a paper form
The information on the website of the Constitutional Tribunal indicate that Tribunal cancelled the hearing planned for 10th of July 2018, on which the president’s application to examine the compatibility of the Act of 15th of December 2017 on the amendment of the Act on Social Security System and certain other acts was to be examined.
From 1st of July 2018, at the request of the tax authority, according to the Article 193a of the Act of 29th of August 1997 Tax Ordinance, every tax payer who keeps tax registers with the use of computer software should take into account the possibility that the tax...
Unfortunately, the legislator does not make it easier for us to answer this question, and the time to make a choice is less and less. The assumption is for PPK to be effective from 1 January 2019, but the project regulations introducing the program (the Employee...
The latest amendment to the Act on the National Court Register, which entered into force on 15th of March 2018, introduced several significant changes. Among them, the obligation to submit in the National Court Register (hereinafter referred to as "KRS"): 1) addresses...