The status of a 'small taxpayer' in PIT and CIT will be obtained by companies with sales to 2,000,000 EUR Annual (currently this is 1,200,000 EUR); the work of the spouse can be included in the cost of obtaining income; a one-off tax loss up to 5,000,000 PLN; for 5,000,000 The obligation to conduct periodic health and safety training in sectors that are least accident-related will be abolished; it will be shortened from 150 to 90 days - the period of entitlement of the creditor who has not received the claim to benefit from the relief for bad debts in VAT - provides for the project of the Ministry of Entrepreneurship and Technology, which was adopted by the Council of Ministers on Tuesday.
Drafting of some laws to introduce simplifications for entrepreneurs in tax and economic law (the so-called SME Package) is almost 50 simplifications that will keep entrepreneurs in their pockets 10 years close 4,000,000,000 PLN. This is another – after the package 100 changes for companies and the Business Constitution – a proposal to make life easier for Polish entrepreneurs.
- We do not slow down and propose further solutions that will facilitate business in Poland. This time we're talking about close. 50 simplifications in the field of tax and economic law," stressed Minister Jadwiga Emilewicz. "Many solutions to facilitate business in Poland are already working, but negligence in this area goes on for many years. Some of them were standardized, among others, by the Business Constitution or the Package 100 changes for companies. We are working on the solution of further ones, such as payment congestion or the low presence of SMEs in public procurement,” says the head of the department.
The draft law amending certain laws to introduce simplifications for entrepreneurs in tax and economic law is aimed mainly at the small and medium-sized business sector.
The draft of the novels envisages an increase in the sales threshold, which entitles to the status of 'small taxpayer' - from 1,200,000 EUR to 2,000,000 EUR. The status of "small taxpayer" gives the right to facilitate depreciation, the rarer obligation to pay advances to PIT and CIT and to lower taxation (in CIT)
Deputy Minister Mariusz Haladyj points out that this project is another portion of changes prepared in cooperation with the entrepreneurs themselves, especially small and medium-sized ones.
“In dialogue with them and in cooperation with the Ministry of Finance, among others, we have created regulations that will improve the liquidity of companies and reduce the bureaucratic burden in tax law,” she notes.
"We also reduce the cost of working employers - we eliminate the obligation of periodic health and safety training for more than 5,000,000 employees. We also raise, more than twice, the staff limit to which the employer does not have to employ health and safety professionals.
Changes also affect company law and corporate accounting regulations. Every change responds to specific demands made by entrepreneurs regarding their daily functioning" - he points out.
Small taxpayer
The draft of the novels envisages an increase in the sales threshold, which entitles to the status of 'small taxpayer' - from 1,200,000 EUR to 2,000,000 EUR. The status of "small taxpayer" gives the right to facilitate depreciation, the rarer obligation to pay advances to PIT and CIT and to lower taxation (in CIT).
"Small taxpayer" is entitled to one-off depreciation, i.e. a one-time calculation of the total value of fixed assets in the cost of obtaining income in the month of entry into the register (maximum value to 50,000 EUR there is no need to allocate the purchase cost for the entire depreciation period.
One-off depreciation compared to linear clearing means that there is less tax in the year of deduction in the event of a high cost of obtaining income. For example, assuming revenue at the level 7,600,000 PLN (Okay. 1,800,000 EUR) and the maximum cost of obtaining revenue at the level 200,000 PLN (50,000 EUR) for one-off depreciation, the taxpayer in first year gains almost 25,000 PLN.
Another "small taxpayer" privilege is a quarterly way of settling advances - the entrepreneur can pay advance payments for the tax every quarter. This means less formalities for making declarations and making transfers - 4 transfers instead of 12.
In addition, the "small taxpayer" includes 15-proc. (a from 1 January 2019 – 9-proc.) CIT rate instead of 19-proc.
Including the spouse's work in income costs
Another of the solutions provided for in the project is to take into account the value of the spouse's work as the cost of obtaining income. After changing the rules, the owner of the company will be able to include the remuneration paid to his wife/husband in the cost of obtaining income.
For example, by paying the spouse a salary of 104,000 PLN per year (i.e. about twice 4,300 PLN per month, or slightly below average salary according to the CSO), thanks to the recognition of this amount as the cost of obtaining income, will pay annually more than 15,000 PLN tax less.
This change is intended to benefit micro and small family businesses in particular. A taxpayer employing a spouse (on the basis of a contract of employment, contract of order or contract of work) will be treated by a taxer the same as a taxpayer employing a person outside the immediate family. This solution will benefit at least tens of thousands of entrepreneurs.
One-off settlement of loss to 5,000,000 PLN
The project also provides for a one-off settlement of the tax loss up to 5,000,000 PLN (only an excess of this amount would be accounted for on the existing basis, taking into account the maximum 50% In one of the year).
Assuming income at a level 7,600,000 PLN, loss to be settled at the maximum annual amount 5,000,000 PLN and 19-proc. the tax rate, in the year of settlement of the loss, the taxpayer can pay until 900,000 PLN tax less than before the amendment.
Such conversion will have a positive impact on the company's liquidity. In addition, once the loss is settled, the necessary formalities are limited (the loss is settled once and not broken down for several years, so the necessary documents are submitted only once).
Elimination of the requirement for periodic health and safety training for 5,000,000 administrative and office staff
The project eliminates the obligation of periodic health and safety training for 5,000,000 employees in industries that are least accident-related.
The proposed amendment will include administrative and office staff employed by an employer qualified as a group of activities for which it has been established, not more than third, the risk category within the meaning of the ZUS regulations. Currently, the employer bears the cost of purchasing the service and conducting the training.
The provisions of the EU Council Directive on periodic training of health and safety at work require that periodic training of workers be included only if necessary and justified. This proposal will eliminate the excessive obligations currently imposed on employers and will reduce their operating costs.
The project eliminates the obligation of periodic health and safety training for 5,000,000 workers in industries that are least accident-related
The project also raises from 20 to 50 employees the threshold to which the employer - if qualified for no higher risk category than third within the meaning of the regulations on ZUS - does not need to employ a health and safety specialist, but can carry out the tasks of the health and safety service itself.
Other selected facilities
- Tax exemption in CIT on certain alternative incomes of investment companies (ASI) obtained from the sale of shares/shares (sale of shares/shares when the total held at least 10% shares in the company and not less than 2 years).
- Exemption from tax (paid from the insurer) amounts of compensation for the restoration of the damaged property. This exemption will apply to all fixed assets, except the passenger car.
- Unification of forms of tax returns for local taxes real estate or forest tax) and possibility to submit them electronically. Currently the forms are very diverse - they are developed by local governments. This makes it difficult for entrepreneurs who have properties in the area more than one municipalities, settlement of taxes due to local governments.
- Shortening to 5 years of compulsory storage of approved accounts. Currently this obligation is unlimited.
- Deregulation of certain information obligations for entrepreneurs, including the period of suspension of the performance of activities or keeping a register of revenues and revenues for settlement of income tax.
- Changes in the operation of the Polish limited liability company. For example, it will be possible for shareholders to adopt all resolutions at a distance, in circulation. Rules will also be introduced for the recovery of advances collected in respect of dividends by shareholders where the company reaches a loss or does not reach a profit of the assumed amount.
- A clear identification of the legal effects of an act carried out by an unauthorised person to represent the company. This will increase economic security.
- Reduction of the period of entitlement of the creditor who has not received the claim to benefit from the relief for bad debts in VAT 150 to 90 days.
- The possibility of telephone or e-mail call by the Social Insurance Institution or employer insured with temporary checks on incapacity for work.
The majority of the proposed solutions will become applicable in 2019
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Source: MPiT