Ministers for Finance of Poland and the United Arab Emirates Magdalena Rodzikowska and Mohamed bin Hadi Al Hussaini signed a joint declaration in Abu Dhabi on enhanced cooperation in the field of taxation. The political agreement between Poland and the UAE will allow for closer contacts and cooperation between public administrations of both countries. The declaration is part of the project initiated by Prime Minister Mateusz Morawiecki to build a coalition of states focused on the idea of tax solidarity.
Thanks to the agreement, Poland and the UAE will share knowledge, experience and best practices in the digitalisation of the tax system. These include digital reporting requirements, big date analysis, machine learning and the use of new technologies in the public sector, such as blockchain.
We are the European leader in the digitisation of the tax system. In recent years we have introduced many IT tools such as JPK, SENT, STIR, online cash registers or KSeF. Therefore, we are ready to share our experience with the implementation of these projects, as well as the best practices in other countries.
Minister Magdalena Rodzikowska emphasizes.
Poland conducts a policy of bilateral agreements on enhanced cooperation in the area of sealing the tax system, which provide a framework for the accelerated transfer of knowledge, experience and tax technologies. Similar declarations were made with the Czech Republic, Estonia, Slovakia, Hungary and Ukraine. On the basis of the agreement, bilateral meetings will be held on the exchange of tax experience.
Tax sealing effects
Poland has unique experience in improving the efficiency of the tax system. As a result of the solutions introduced, the VAT gap has decreased from 24.1% (2015) to 4.9% (2022). From 2016 We are also seeing a rapid increase in CIT revenue.
In years 2016-2023 CIT revenue (as forecast in the Budget Law for 2023) increase 62,500,000,000 PLN, or o 190.1%. By comparison, the increase in CIT revenues over the years 2008-2015 was 2.3%. The gray zone on the cigarette market shrunk with 16.8% (2015) to just 4.9% (2021).
Moreover, in recent years Poland has made a technological leap, introducing digital analytical and reporting systems.