2019 has brought about many changes in the clearing of vehicles used by taxpayers in their business. one it is more important to introduce a limit on the value of the vehicle up to which it will be possible to count the full depreciation for its wear.
A taxpayer who will introduce from 1 January 2019 to its fixed assets record a car with an initial value exceeding the amount 150,000 PLN, it will not be able to deduct all depreciation deductions. In the case of passenger cars that are electric vehicles, this amount has been set at 225,000 PLN (Article 23(1)(4) point (a) and b the PIT Act, Article 16(1)(4) point (a) and b of the CIT Act).
Tax payers can benefit from new solutions. However, this does not apply to those before 1 January 2019 they've completely cushioned the passenger car.
Since electric cars are not yet a common phenomenon in Poland, the amendment can be regarded as a curiosity and an incentive to use such vehicles. For practical reasons, it is more important for Polish taxpayers to change the definition of a new upper limit of the initial value of the car, which can be qualified as the cost of obtaining income.
Tax payers who will enter into their records of fixed assets and intangible assets a vehicle after 1 January 2019 have clear situations how to make depreciation write-offs. However, doubt arises for a broad group of taxpayers who have placed such a vehicle in their records before that date and made copies in accordance with the provisions of the Act. This is where the problem begins, which, as in lens, illustrates the quality of Polish legislation.
The taxpayers concerned do not need to be reminded that, according to the current wording of the Act, the cost of obtaining income may have included depreciation for the use of the passenger car in the part determined from the value of the non-excess car 20,000 EUR. The new rules are more favourable in this respect.
But can these taxpayers benefit from the new burden of regulations? The legislator did not facilitate the explanation of this mystery.
It seems that the existence of a large number of taxpayers, who, at the time of entry into force of the changes, have already made depreciation write-offs under the present rules, and the process has not yet been completed.
In case of such doubts, First, the intertemporal rules contained in the bill amending the Income Tax Act (Journal of Laws of 2018, item 2159).
The final articles of such a law should explain when the new rules are applied, how to proceed in transitional situations and to what extent and to what extent the existing provisions should be applied.
In this case, there are no intertemporal rules governing our doubts. The taxpayers are therefore faced with a dilemma whether they are entitled to benefit from a new solution that is more favourable to them or whether they should make depreciation deductions according to old rules.
Despite these doubts, can taxpayers apply new accounting rules?
The answer is yes. However, this action is linked to the risk that tax authorities will challenge the right to write off depreciation under new rules. Tax payers should therefore be able to deny them the right to benefit from new, more favourable regulations.
Even if this were the case, it is not worth giving up fighting for your rights before administrative courts. As the practice shows, the courts repeatedly in this type of questionable, interpretatively questionable cases were on the taxpayer's side in his dispute with tax authorities.
In this case, the in dubio pro tributario principle may be invoked, which requires the irrefutable doubts as to the content of tax legislation to be settled in favour of the taxpayer. That's what the Ministry of Finance says about it.
Uncertainty about the possibility of applying the law shows poorly the legislative process in Poland. Amendments to tax laws in this respect show that haste does not encourage consideration of all possible consequences of the new legislation for the persons to whom they are addressed.
It is also worth noting that the Constitution as a source of law does not indicate statements from the Ministry of Finance, which attempts to resolve doubts of confused taxpayers. It is only to be hoped that the legislator, when preparing further amendments to the legislation, will draw conclusions from the situation.
source: https://www.forbes.pl/opinie/amortyzacja-samochodu-na-nowych-zasadach-co-z-podatnikami-rozliczajacymi-je-jeszcze/e09l6zw
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.