Planned changes to the so-called "website"

The Internet today is not only a source of knowledge (with both positive and negative effects), but one from basic means of social communication.

It was shown by a powerful pandemic Covid-19, forcing on some employers the introduction of remote workers' work, and thus electronic communication through Internet communicators and more frequent electronic transmission of documents.

This has also confirmed that the shortcomings concerning electronic equipment, especially the use of the Internet, can be a serious problem.

one changes to the so-called "website" may be proposed from the solutions to the above problem. These proposals are relatively recent, because the draft law of the Parliament[1] He entered the Sejm on the day 21 June, and 7 July has been directed to first reading at the session of the Sejm. What about these changes, and how will they affect this relief?

The introduction of the amendments will not result in an increase in expenditure on the part of the state budget or in budgets of local government units, and the only effect will be to reduce the revenue of the State budget on personal income tax

First, it should be recalled what a "website relief" is. This is due to Article 26(1)(6a) Personal Income Tax Act[2] according to which the taxpayer may deduct from the tax base the expenses incurred in the use of the Internet. This deduction may not exceed, in a given tax year, the amount 760 PLN.

Additional restriction section 6h the above Article, according to which the deduction is due to the taxable person only successively following two tax years and so if, in the period preceding those years, he did not benefit from the deduction.

The proposed amendments aim to make the deduction more attractive. First of all, it would not only concern expenditure incurred for the use of the Internet network, but also those related to the purchase of related equipment, its use, installation, expansion, modernisation and ongoing maintenance.

In addition, the amount of deduction to the amount of minimum remuneration for the work in force will significantly increase 1 January the year concerned. Therefore, if, for example, the amendments were to apply from this year, the maximum deduction would be 2,800 PLN.

The last, but not least, change would be to delete the above mentioned Article 26(6h) Personal Income Tax Act. This means giving up the ‘time limit’ associated with the benefit.

In the explanatory memorandum to the bill on amending the Personal Income Tax Act, you can read about the anticipated social, economic, financial and legal consequences. According to the designers one from positive changes will reduce the phenomenon of digital exclusion.

As rightly indicated in the statement of reasons, digital exclusion is not only a matter of inability to use and purchase electronic equipment, but also of limiting access to equipment and software of adequate quality[3].

This will be related to the possibility of compensating for some of the expenses incurred in purchasing more modern (by default: more expensive) devices allowing the use of the Internet – or more devices.

The justification also foresees an increase in demand for goods related to the use of the network, for example not only computers, but also modems or routers. It is also assumed to increase demand for services related to the provision of Internet access, but also services related to the installation, modernisation and expansion of the above equipment.

At the same time, it was noted that the changes would not result in an increase in expenditure on the part of the state budget or in the budgets of local government units, and the only effect would be to reduce the revenue of the State budget on personal income tax. At this point, it is not possible to estimate the exact amount of income drop, but the designers estimate that it will not exceed 500,000,000 PLN.

At a time when more and more business and official cases can be implemented over the Internet, the proposed changes related to the so-called "website" can be considered positive. What, however, will be the impact on demand for goods and services related to the use of networks and will the problem of digital exclusion be reduced at least slightly? Time will tell, though you can be of good thought.

Author: Michał Zdanowski

Tax consultant in Russell Bedford Poland. Graduate of the Faculty of Law and Administration. University of Warsaw, Graduate of the Postgraduate Tax and Tax Law Study of the University of Warsaw, Graduate of the Postgraduate Accounting and Finance Studies of the Warsaw School of Economics. During his studies, he gained experience in law and tax law firms. Since September 2013 is associated with the law firm Russell Bedford Poland. It specialises in documenting transactions between related parties.