On 2 March 2018 in the general interpretation of the Minister of Finance, a position is presented on the amendment of the provisions on monetary contributions. Due to the controversy surrounding this topic, the government is planning further legal changes.
From 1 January 2018 the new wording of the provision with Article 12(1)(7) CIT that the revenue is the value of the contribution as defined in the statutes or in the articles of association and, in the absence thereof, the value of the contribution as determined in another document of a similar nature.
The amendment of this provision was quickly met with criticism, for its literal wording shows that the income is also the cash contributions to the company. Such contributions could be taxed both at the time of the creation of the capital and limited-activity companies and at a later stage of their operation, due to the increase in share capital.
However, the Minister of Finance is of a different opinion and stated that this provision applies only to non-monetary contributions. This is due to both the wording of this provision and its substance. The Minister also referred to the justification for the draft law which referred to non-monetary contributions forming an organised part of the undertaking.
The Minister of Finance presented his position in a published 2 March 2018 General interpretation of the Minister of Finance No. DD6.8201.1.2018.
Due to the controversial burden of the recipe with Article 12(1)(7) CIT government plans to amend the bill (project from 22 February 2018 is already in the Sejm). However, there is no detailed information on when the project will be discussed.