Programme 500 plus was the standard election program of the PiS in parliamentary elections In 2015 According to some analysts, he was the foundation for the success of the current rulers. Few people expected the social program to be exclusively first the reform phase. In 2019 There is a storm of change that will primarily include "the most important" tax laws, i.e. PIT, CIT and VAT.
Unwanted changes revolve around their noses, reformers blur their hands, and consultants, tax advisers, and tax specialists will strip their sleeves and prepare to control the confusion that always accompanies such major changes. And everything at the sounding slogan: “Simple, Clear, Friendly Taxes”.
This does not mean, of course, that in practice these changes will be clearly regarded as negative or positive. However, it is difficult to reduce the dichotomy of public opinion. This one reacts quite predictablely. Raising the tax-free rate is good, the new tax of evil. But what does it look like when you look more closely?
Unwanted changes revolve around their noses, reformers blur their hands, and consultants, tax advisers, and tax specialists will strip their sleeves and prepare to control the confusion that always accompanies such major changes. And everything at the sounding slogan: “Simple, Clear, Friendly Taxes”
Simple taxes
Surely the most welcome change will be the announced increase in the tax-free amount. This gradually increases from the level 3,091 PLN to 6,600 PLN In 2017, to eventually from 2019 reach height 8,000 PLN. Its degressive form was also maintained. This means that the higher the income, the lower the tax-free amount, until the amount is recovered 3,091 PLN at income above 13,000 PLN, to then fall to 1 PLN in the income threshold from 85,528 PLN to 127,000 PLN. The subject is getting complicated.
Let's take a look at tax-reducing amounts. In 2019 Depending on the threshold reached, it will be calculated in different ways. For example, a natural person with an income of 9,000 PLN calculate this amount by applying the following action: 1,440 PLN less the amount calculated using the formula 883.98 PLN x (base of calculation of the tax – 8,000 PLN)/ 5,000 PLN.
All within the framework of facilitation for citizens and entrepreneurs. Therefore, the justification for the changes implemented 1 January 2019 reach above 300 pages. And since it is not a thrilling reading, reading it can cause problems not only for those who are not familiar with tax issues, but even for those who try to keep up with changes on a daily basis.
Clear taxes
New taxes will certainly include the so-called "exit tax" and the solidarity tribute, although this second the tax will only apply from 2020 It is intended to respond to the demands of disabled people and their guardians. The support fund thus provided will be based on 0.15% the contribution from the Labour Fund and 4% tax on the richest.
The taxed excess over one million PLN annual income. However, to 2020 still a little longer (and many potential changes), so it is difficult to judge how the implementation of the tax will ultimately look. The Ministry of Finance estimates the annual amount of the fund’s contribution to 2,000,000,000 PLN.
Focusing on the "exit tax" it should be mentioned that it is not just the idea of our legislator. The obligation to introduce it imposes on us an EU ATAD Directive and in general it involves combating tax emigration. The EU only assumes that it should be imposed on legal persons.
However, the government considered that this was not enough, so it not only accelerated the introduction of the tax (according to the provisions of the directive it should be implemented to the end 2019), but it also includes natural persons (which the directive itself advises against: "because this would require a wider range of national taxes to be included in the scope of the Directive, it is not appropriate to extend the scope of this Directive to entities not subject to corporate tax in a Member State"[1]).
It is therefore possible that it will be the same fate as in other countries, such as Spain, for example, in the case of the legislation in question, that the EU Court of Justice found that such rules infringe the principles of freedom of settlement and movement of capital.
Friendly taxes
Changes in Tax Ordinance impose new obligations on taxpayers as well. One of the most significant is certainly introduced from 1 January 2019 Chapter 11a ‘Information on tax schemes’. It requires tax authorities to provide information on these schemes (MDRs).
In particular, the government of tax advisers is negatively assessing this change. In his opinion, the regulations have inadvertently entered the matter of professional secrecy, undermining customers' confidence in advisors.
Even in spite of these doubts, this will impose on taxpayers additional obligations to tax authorities for failing to meet which even multi-million-dollar financial penalties and criminal tax liability may be met, including a ban on economic activity.
Assuming that the total draft tax changes from 1 January assumes 73 amendments to the PIT Act, 92 in the CIT Act, 83 In Tax Ordinance and also changes 9 other tax laws, it is rather difficult to find an entrepreneur who will be able to successfully get through the storm of new obligations and regulations in January. Not counting, of course, huge companies employing tax advisers for these purposes.
Source: Forbes
Author:
Andrzej Dmowski
Lawyer and Doctor of Legal Sciences of the University of Warsaw. From 2011 one from Corporate Management Partners Russell Bedford Poland. Previously on the BDO advisory network, as well as Deloitte & Touche. Author of the book “Transfer Prices”, co-author of the commentary “The Corporate Income Tax Act”, author of many publications on tax law.