In the previously existing state of the law, taxpayers who sold private-leased cars were obliged to demonstrate the revenue from the sale of goods, if the sale was made before expiry 6 months after the month in which the purchase took place and the removal of the car from the register of fixed assets.
This solution was very popular with taxpayers because it allowed to avoid tax on income from the sale of cars after 6 months after the car was withdrawn from the records. The legislator considered this phenomenon to be located on the borderline of the law, so he decided to seal the system of resale of clearing cars.
Within Polish Deal the content has been changed Articles 10(2) and 14(2) Personal Income Tax Act [1] . According to the regulations contained in the revised regulations, from 1 January 2022 revenue from the sale of a car withdrawn from a single business activity will be considered as income from a business activity if between the first and following the month in which the vehicle is withdrawn and the date of disposal will not expire 6 years.
Importantly, the new regulations refer to the issue of the sale (pay-per-view) of the car. In deciding, for example, to give such a vehicle to relatives on the part of the entrepreneur, there will be no obligation to show revenue. However, there may be statutory obligations under inheritance and donation tax.
According to the new rules, the sale of a car withdrawn from JDG will be taxed (provided that the sale is made before the expiry of 6 years after withdrawal or redemption:
- • 3% where a lump sum is applied on revenue,
- • 19% in the case of liner tax,
- • 17% or 32% where the tax scale is applied.
The sale of a passenger car, which is withdrawn from business activity, is neutral in terms of tax on goods and services, as the sale comes from private property. Furthermore, the sale of the car under the above conditions does not require any additional documents or statements.
Let us remember that when selling a passenger car, any natural person who disposes of a vehicle is obliged to transfer the purchase contract to the competent local location of the communication department. For failure to notify the contract within the time limit 30 days from the date of sale shall be liable to fine until 1,000 PLN.
He talks about it. Article 140mb(2) Traffic Law Act [2] :
„Who, being the owner of a vehicle registered in the territory of the Republic of Poland, contrary to the rule Article 78(2)(1) does not notify the governor of the acquisition or disposal of the vehicle — is subject to a monetary penalty of between 200 to 1,000 PLN”.
[1] Act dated 26 July 1991 on personal income tax (Journal of Laws of 2022, items 558, 583).
[2] Act dated 20 June 1997 road traffic law Journal of Laws of 2021, items 2269, 2328).
Author: Darya Bannaya
Younger tax consultant. Graduate of Law at the Faculty of Law and Administration of the University of Warsaw, graduate of Global Business, Finance and Management in Warsaw School of Economics. Winner of the Ministry of Finance competition “Tax to Leaders” 7. edition.
Conducting trainings and conferences for foreigners in tax aspects of conducting and establishing business in Poland. He specializes in tax law, advising clients on current matters relating primarily to income taxes. Author and co-author of a tax law publication.