Changes in taxes 2024

1 January This is probably the most preferred date by the legislator to determine the moment of entry into force of the new law. As every year, tax legislation changes which affect taxpayers, whether natural or legal, or ordinary citizens.

It is worth noting, however, that this year there are no "revolutionary" changes, and there are also as many of them as in previous years.

Although the 10th term of office of the Sejm is already being held, most of the changes introduced were announced by the previous government before the parliamentary elections or by delaying the introduction of further legislation.

Among the most important changes, it is definitely worth including the introduction of a minimum tax and the upcoming obligation to use the KSeF system by all VAT payers from 1 July 2024 These changes are so significant that they required to be described in separate articles to which the reader may find reference in footnotes.

We invite you to review tax changes in regulations Tax Ordinance, PIT Act, CIT Act, VAT Act, Local Fees Act and PCC Act[1].

Amendments to the general rules

Part of the changes in tax rules, due to their relevance and scope, are difficult to classify as changes in the scope of individual taxes, even if they are included in the laws concerning them. For this reason, we have decided to describe them separately in order to preserve the transparency of the article.

Minimum tax

This tax was introduced by law yet In 2021 As part of the project „Polish Deal” And she was supposed to come in from the beginning.

2022 However, the bill that amended the provisions related to "Polish Deal", The entry into force of the minimum tax was postponed to the beginning 2024 This tax includes companies and a tax group, established or managed in Poland, which, in the course of its operations, incur a loss or show a low rate of profitability not exceeding 2% revenue.

Its objective was to increase the efficiency of taxation in taxable persons artificially inflating their costs or artificially revenue-making through related foreign entities.

It is important to stress that this tax covers the period 3 the years in which the above basis for its application is examined. Overshooting the income ratio in any of these years excludes the application of minimum taxes. Tax 10% the tax base calculated in accordance with the model in the Act.

Under the rules, no advances are counted in the case of minimum tax. first settlement of minimum taxes therefore, despite the entry into force of the Act from the outset 2024, will be the earliest In 2025 However, business organisations are pushing for a new government to postpone or even completely waive these regulations. As these are positive changes for taxpayers could be made in the tax year[2].

Mandatory KSeF

From 1 July 2024 Active VAT payers will be covered by the mandatory e-invoicing system, the National e-Factur System. This system applies from 1 January 2022 as a voluntary solution.

KSeF is actually a specialised platform for issuing and receiving invoices electronically. Its intention is to completely limit paper invoices in B2B transactions, and for the moment there are no solutions for B2C transactions.

This is considered the biggest tax challenge 2024 for a number of entities that will have to make a number of significant changes in the way the organisation operates and in customer contacts. This will also require expenditure on adapting existing accounting systems for the smooth use of information structures[3].

Individual depreciation rates and their reduction

From 1 January 2024 micro, small and medium-sized entrepreneurs operating in high unemployment municipalities will be able to benefit from a shorter depreciation period of fixed assets in the form of buildings and non-residential buildings depending on the level of unemployment. Businesses will be able to reduce the depreciation period by applying individual depreciation rates. This change is due to the addition of section 7-13 according to the provisions: Article 22j the PIT Act and Article 16j CIT Act.

Taxable persons who are micro, small or medium-sized enterprises, within the meaning of the Business Law[4], will be able to individually determine the depreciation rates for self-produced fixed assets which are buildings/non-residential premises and buildings included in the group 1 and 2 Classifications, once first entered in the register of fixed assets and intangible assets of the taxpayer concerned, where that fixed asset is located in the municipality area:

• located in the county where the average unemployment rate is at least 120% the average unemployment rate in the country, and
• in which the rate of tax revenue per one resident in the municipality is smaller than 100% tax revenue index for all municipalities.

Where the measure in question will be located in the municipality area located in the district where the average unemployment rate will be:

• from 120% to 170% the average unemployment rate in the country - the depreciation period for this permanent measure will not be shorter than 10 years,
• above 170% the average unemployment rate in the country - the depreciation period for this permanent measure will not be shorter than 5 years.

Compliance with the above conditions will be set at the month in which it occurs one of the following events:

• the decision to permit construction will be valid;
• the time limit for objecting to the construction declaration made, or a certificate of lack of grounds for objecting;

the measure will last once first entered into the register of fixed assets and intangible assets - where the construction of this permanent measure does not require the obtaining of a decision to permit construction or to declare construction or for other reasons no such decision has been taken or to make such a notification.

The average unemployment rate in the county and the average unemployment rate in the country will be understood as the average unemployment rate in the county and the average unemployment rate in the country announced by the President of the Central Statistical Office on the basis of Article 82 Act dated 20 April 2004 promoting employment and labour market institutions[5] in the year immediately preceding the year in which it occurred one from the above mentioned events.

By the tax revenue index on one residents in the municipality and the rate of tax revenue for all municipalities will be understood as G and Gg respectively within the meaning of Article 20(4)(5) Act dated 13 November 2003 on the income of local government units[6] on the basis of the calculation of the amounts of the compensatory part of the general subsidy for the year immediately preceding the year in which the abovementioned events occurred.

Under the newly introduced rules, these facilities will constitute de minimis aid granted to the extent and under the conditions laid down in directly applicable European Union law.

Other amendments

Other changes to the general tax system include:

• transfer to the issuer the liability for the tax not collected in the event of a statement made by the issuer in the cases indicated under Article 41(24)(2) the PIT Act and Article 26(1aa)(2) CIT Act – Article 30(5c) Tax Ordinance;
• Increase the value limit of individual things or rights under the tax pledge with 15,500 PLN to 17,800 PLN – Article 41 Tax Ordinance;

Increase of the order penalty for the party, party attorney, witness or expert from 3,300 PLN to 3,700 PLN where indicated under Article 262 Tax Ordinance.

Changes in the PIT

Among the most important changes in the taxation of individuals' income were the sale of units of investment funds and the transfer of taxation from flat-rate tax 19% to a group of financial capital which will allow for effective settlement of losses.

Sale of investment fund units

The rules on the sale of investment fund units will be supplemented by new paragraphs, namely Article 30b(1)(5) and Article 30b(2)(7) PIT Act. From 1 January 2024 The provisions will therefore read as follows:

Article 30b(1).  From revenue generated:

• 5) from the redemption, redemption, redemption or destruction by any other means of participation in capital funds
• - the income tax is 19% income earned.

Income in question Under section 1, is:

• 7) difference between the sum of the proceeds of redemption, redemption, redemption or annihilation of capital fund participation titles and the cost of obtaining revenue determined on the basis of Article 23(1)(38)
• - achieved in the tax year.

This change causes investors, i.e. taxpayers, to pay the tax themselves in the declaration PIT-38, Not by the income fund so far. In addition, taxpayers gain the opportunity to compensate for profits and losses from funds and other financial instruments. The above-mentioned income will be included in the catalogue with other income, i.e.

income from securities and derivatives of financial instruments, allowing this to be offset by losses and profits. However, it is worth mentioning that these provisions will apply only to the revenue generated In 2024, and will therefore be applicable In 2025 when clearing taxes on profits achieved from 1 January 2024

Allowing entrepreneurs to use your e-PIT

So far with the service Twój e-PIT they could not benefit fully from the tax payers operating non-agricultural economic activities. With this service, it was not possible to provide pre-filled annual statements to the abovementioned taxpayers. In 2024 This will change.

Date 1 July 2023 an amendment has entered into force that the tax authorities are obliged to make the pre-filled annual statements available to taxable persons engaged in non-agricultural business or special agricultural production, except for taxable persons who are an undertaking in decline. The data contained in the statements are based on information held by the Head of National Tax Administration, such as advance payments made by the taxpayer during the tax year.

Change occurred under Article 45cd The PIT Act, where a passage from words has been deleted, except for the taxpayer ‘giving a statement in relation to non-agricultural business activities or special agricultural production units’:

Date 15 February the year following the tax year, the tax authority shall make available to the taxable person, with the exception of the taxable person making a statement in connection with the non-agricultural business activity or special agricultural production units and the taxable person who is an undertaking in decline, through the e-IRS of the account in the e-IRS of the testimony referred to under Article 45(1) and (1a) points 1 and 2, and the information in question under Article 21(46)(1), Having regard to the data held by the Head of National Tax Administration, including data:

• 1) included in the annual calculation of the tax and information referred to under Article 21(46)(1), Article 34(7)(8), Article 35(6), Article 39(1)(3), Article 42(2)(1), Articles 42a(1) and 42e(6);
• 2) the advances paid by the taxpayer during the tax year.

Other amendments

The taxpayer may include grants, subsidies, subsidies, other unpaid benefits or amounts received from the executive agencies before the expiry of the time limit for the statement for the tax year in which he received them (i.e.

15 February to 30 April the following year), shall submit to the competent head of the tax office a statement in writing of the inclusion of certain grants, subsidies, subsidies, other unpaid benefits or amounts received from the executive agencies for revenue.

The taxpayer may also not apply income tax exemptions in this case (amendment under Article 21(42a) PIT Act).

The taxpayer has the possibility to calculate the cost of obtaining revenue depreciation on fixed assets and intangible assets financed by the revenue to which the claim relates (rescription Article 23(1)(45) The PIT Act does not apply) – Article 14(9) the PIT Act;

The income tax-free benefit is the benefit in question In the Act dated 7 July 2023 support (Journal of Laws, item 1429) – Article 21(1)(8e) the PIT Act;

Increase possible deduction from the tax base of the membership contributions paid to trade unions from 500 PLN to 840 PLN;

The recipe has been reformulated Article 26(7e) PIT laws on tax bases for persons with disabilities;

Increase in the total amount of ZUS and health contributions included in the cost of obtaining income from taxpayers taxed on a linear tax with 10,200 PLN to 11,600 PLN;

Extension of the income tax exemption:

• the protective additive referred to In the Act dated 17 December 2021 with a protective additive,
• carbon additive referred to In the Act dated 5 August 2022 with a carbon additive,

household allowance for the use of certain heat sources and for certain non-household entities for the use of certain heat sources in question In the Act dated 15 September 2022 specific solutions for certain heat sources in view of the situation on the fuel market,

the electric allowance referred to In the Act dated 7 October 2022 special solutions to protect electricity consumers in 2023 and 2024 in view of the situation on the electricity market, and

refund of the amount corresponding to VAT in question In the Act dated 15 December 2022 special protection of certain gas fuel customers In 2023 and In 2024 in the light of the gas supply situation (Journal of Laws, item 2687).

CIT tax

From 2024 the payers will not be required to collect interest or discount tax, including in the case in question under Article 26(2e) the CIT Act, from:

bonds;

bonds:

with a maturity of not less than one year,

admitted to trading on a regulated market or entered into an alternative trading venue within the meaning of the provisions Act dated 29 July 2005 on the trading of financial instruments, in the territory of the Republic of Poland or in the territory of a State party to a double taxation agreement concluded with the Republic of Poland, the provisions of which lay down rules on taxation of dividends, interest and royalties[7].

According to the above mentioned Article 26(2e) Corporate Income Tax Act:

Where the total amount of the entitlements paid for the titles listed under Article 21(1)(1) and Article 22(1) to a related party, it exceeded in the tax year in force for the paying agent the total amount 2,000,000 PLN to the same taxpayer, legal persons, non-legal entities and natural persons who are traders shall be collected as payers, subject to the section 2g, on the date of payment of the flat-rate income tax on these payments at the rate of tax specified under Article 21(1)(1) or Article 22(1) above the amount 2,000,000 PLN:

• 1) taking into account the deductions provided for under Article 22(1a-1e);
• 2) without the possibility of no tax being collected under an appropriate double taxation agreement, and without taking into account exemptions or rates resulting from specific provisions or double taxation agreements.

Non-collection of the tax in the case of bonds shall be subject to a declaration by the issuer to the competent tax authority that the issuer has exercised due diligence in informing its affiliated entities within the meaning of Article 11a(1)(4) or within the meaning of Article 23m(1)(4) PIT Act, excluding entities whose links arise solely from a link with the State Treasury or local government units or their associations, with the conditions of exemption in question under Article 17(1)(50c)[8], for those related entities.

This declaration shall be made once for a given bond issue, no later than the date of payment of interest or discount on those bonds. The payer may request the issuer to confirm the submission of the declaration in question[9]

VAT

New VAT records for payment service providers

Act dated 14 April 2023 amending the Goods and Services Tax Act and certain other laws (Journal of Laws of 2023, item 996) introduced from 1 January 2024 the obligation to keep quarterly records of cross-border payments and recipients of payments.

To this end, the legislator added in the VAT Act Chapter 2a entitled ‘General obligations of payment service providers’. These provisions aim to implement Directive 2020/284 amending the VAT Directive[10]. Regulation aims to reduce tax fraud in e-commerce. The obligation to keep records shall concern in particular:

• national banks,
• branches of foreign banks,
• credit institutions,
• payment institutions

And the SKOKs.

The payment service provider will have to keep records of the payment and payment recipients concerned only if the total number of cross-border payments to the same payment recipient exceeds the threshold 25 payments in the quarter.

The threshold shall be calculated for each payment service provider providing the payment service to the payee. In that case, if the threshold is exceeded within the payment service provider shall report the transactions.

The threshold should be calculated on the basis of each individual payment received by the payee and not on the basis of a batch of payments received periodically. This information on the individual payment between the original payer and the intended consignee will have to be included in the records.

Payment shall be considered as a cross-border payment where the payer is on the territory one Member State and recipient of payment is in the territory of another Member State or in the territory of the State third. Therefore, national payments will not fall within the scope of this Regulation. Therefore, if both the payer and the payee are in the territory of the same Member State or outside the EU, the new obligations do not apply.

The record is to be accessible to the Head of the KAS and transferred to the EU CESOP -Central Electronic System of Payment information. The electronic record shall be kept by 3 years after the end of the tax year in which the payment took place.

VAT rates In 2024 on foodstuffs

Regulation of the Minister of Finance with 9 December 2023 on reduced rates of tax on goods and services (Journal of Laws, item 2670) has been extended to 0% VAT rates on basic foodstuffs to 31 March 2024

Lowered to height 0% the tax rate applicable to the foodstuffs listed In items 1-18 Annex 10 to the VAT Act, other than those classified according to the Polish Classification of Products and Services in the grouping of food services (PKWiU) 56), in particular: fruit, vegetables, meat, dairy products and cereal products. If there are no new rules extending the rate 0% for the above-mentioned foodstuffs with Annex 10 to the VAT Act, VAT rates from April 2024 will return to the level 5%.

Other amendments

The legislator introduces from 1 January 2024 the obligation to have an account in the e-IRS and an e-mail address or telephone number in the above account in relation to matters relating to Binding Rate Information (WIS), as well as the obligation to report to the WIS only through the e-IRS – Article 42b(1a)(1b) and Article 42g(1)(4-5) VAT Act;

Other taxes

Increase in rates of local taxes and charges

According to the Act on Local Taxes and Fees, the rates of property tax are set in the resolution by the municipal council or city. However, the rates set by the council must not exceed the statutory maximum. The maximum rates shall be determined annually by the Minister of Finance, to the extent consistent with the inflation rate. In the first half a year, rounding them up to a full penny.

As stated by the Central Statistical Office in the Communication of the President of the Central Statistical Office dated 14 July 2023 on the price index of consumer goods and services in the first half of the year 2023:

„Based on Article 20(3) Act dated 12 January 1991 on local taxes and charges (Journal of Laws of 2023, items 70, 1313) Price index of consumer goods and services in the first half of the year is announced 2023 for the first half of the year 2022 was 115 (price increase by 15%)”. Consequently, the rates of local taxes and charges, which are regulated by the abovementioned Act on Local Taxes and Fees, will increase by 15%, which is illustrated below.

The rates of taxes and local charges are of a quota nature, with the exception of the rate on buildings (i.e. buildings that are not buildings), which is of a percentage nature and amounts to 2% the value of these structures. Real estate tax rates:

Land rates:

• for the conduct of business activities, regardless of the way in which land and buildings are classified, no more than 1.34 PLN/m2 (earlier 1.16 PLN, growth by 0.18 PLN),
• located above surface standing or flowing lakes and artificial tanks — 6.66 PLN/ha (previously 5.79 PLN, growth by 0.87 PLN),
• undeveloped, revitalized or residential or service-based areas 4.39 PLN/m2 (earlier 3.81 PLN, growth by 0.58 PLN),
• other, including those engaged in the pursuit of a paid statutory activity by public benefit organisations – 0.71 PLN/m2 (earlier 0.61 PLN, growth by 0.1 PLN).

Building rates:

• residential – 1.15 PLN/m2 useful area (previously 1 PLN, growth by 0.15 PLN),
• related to business activities and residential buildings (or parts thereof) occupied with business activities — 33.1 PLN/m2 (earlier 28.78 PLN, growth by 4.32 PLN),
• engaged in the marketing of certified seed — 15.5 PLN/m2 (earlier 13.47 PLN, growth by 1.98 PLN),
• for the provision of health services within the meaning of the legislation on medical activities occupied by the providers of those services, 6.76 PLN/m2 (earlier 5.87 PLN, growth by 0.89 PLN),
• the others, including those engaged in the conduct of statutory activities by public benefit organisations, 11.17 PLN/m2 (earlier 9.71 PLN, growth by 1.46 PLN).

Rates of transport tax:

Rate for trucks with maximum permissible weight:

• above 3.5 tonnes to 5.5 tonnes 1,173.19 PLN (earlier 1,020.16 PLN, growth by 153.03 PLN),
• above 5.5 tonnes to 9 tonnes — 1,957.12 PLN (earlier 1,701.84 PLN, growth by 255.28 PLN),
• above 9 tonnes, below 12 tonnes — 2,348.52 PLN (earlier 2,042.19 PLN, growth by 306.33 PLN),
• 12 tonnes and more — 4,481.57 PLN (earlier 3,897.01 PLN, growth by 584.56 PLN).

Rate of saddle and ballast tractors:

• designed to be used with a semi-trailer or trailer with a DMC of a combination of vehicles from 3.5 tonnes to 12 tonnes — 2,739.9 PLN (earlier 2,382.52 PLN, growth by 357.38 PLN),
• designed to be used with a semi-trailer or trailer with a DMC of a combination of vehicles from 12 to 36 tonnes — 3,463.95 PLN (earlier 3,012.13 PLN, growth by 451.82 PLN),
• suitable for use with a semi-trailer or a trailer with a DMC of the vehicle assembly above 36 tonnes — 4,481.57 PLN (earlier 3,897.01, growth by 584.56 PLN).

Rate for trailers or semi-trailers:

• of which the DMC including the vehicle is from 7 and below 12 tonnes, except those exclusively related to agricultural activities — 2,348.52 PLN (earlier 2,042.19 PLN, growth by 306.33 PLN),
• of which the DMC including the vehicle is from 12 to 36 tonnes, except those exclusively related to agricultural activities — 2,739.9 PLN (earlier 2,382.52 PLN, growth by 357.38 PLN),
• of which the DMC including the vehicle is above 36 tonnes, except those exclusively related to agricultural activities — 3,463.95 PLN (earlier 3,012.13 PLN, growth by 451.82 PLN).

Rate of buses:

• with fewer seats for passengers than 22 – 2,773.16 PLN (earlier 2,411.44 PLN, growth by 361.72 PLN),
• with a passenger capacity equal to or greater than 22 – 3,506.02 PLN (earlier 3,048.71 PLN, growth by 457.31 PLN).

Other local charges:

• fair fee – 1,096.39 PLN/day (previous 953.38 PLN, growth by 143.01 PLN),
• local fee in towns with favourable climatic properties, landscape values – 3.22 PLN/day (previous 2.8 PLN, growth by 0.42 PLN),
• local fee in towns with spa protection status – 4.54 PLN/day (previous 3.94 PLN, growth by 0.6 PLN),
• spa fee – 6.21 PLN/day (previous 5.4 PLN, growth by 0.81 PLN),
• fee on holding dogs – 173.57 PLN/year (previous 150.93 PLN, growth by 23.4 PLN),
• fixed advertising fee – 3.62 PLN/day (previous 3.14 PLN, growth by 48 gr),
• variable advertising fee – 0.33 PLN/m2 advertising area (previously 0.28 PLN, growth by 5 gr).

However, it is worth noting that this amendment only increases the maximum value to which the municipality can determine the amount of tax. The actual rate of taxes and charges in a given year is decided by each municipality by a resolution of the council.

New property tax

From 1 January The PCC Act includes a new tax for purchasers sixth And another apartment. Therefore, it is mainly the operators operating in the housing buying market. These provisions were passed by the previous government of Mateusz Morawiecki based on Act dated 26 May 2023 amending the Municipal Government Act, the Social Forms of Housing Development Act, the Real Estate Economy Act, the Civil Action Tax Act and some other laws (Journal of Laws, item 1463).

In order to be able to introduce this obligation, PCC tax exemptions have changed. Under Article 2(4) point (a), which currently provides that they are not subject to civil law activities other than the articles of association and its amendments “to the extent that they are taxed on goods and services, with the exception of sales contracts, the subject of which is a residential establishment constituting a separate property, taxed in accordance with Article 7a”.

Newly added Article 7a provides that for acquirers ‘at least six dwellings constituting separate properties In one or several buildings built on one land, taxed on goods and services, or shares in those premises, or has already acquired at least five such premises or shares thereof, the rate of tax on the same buyer of the sale contract sixth and any subsequent such premises in or participate in that building or buildings, 6%”.

It is worth noting that the basic rate of taxation for a real estate sale agreement is 2%. The provisions do not explicitly indicate which of the premises to be purchased will be taxed at an increased rate . This means that if you acquire more than six the premises are the taxable person himself who decides which of them he taxes.

This also applies if the acquisition of a dwelling which is a separate property is shared ownership by several buyers, if at least one from buyers is obliged to pay tax. However, in such a case, only buyers who fulfil the above conditions are jointly and severally liable to pay the tax. Other buyers will not be obliged to pay this tax.

The provisions introduced apply in principle from 1 January 2024 However, the exception is the sales contracts concluded after that date but in connection with the execution of the contracts obliging that sale, concluded before that date. To that end, the provisions Article 7a The PCC Act will not apply.

At the same time, it is worth recalling that from 31 August 2023 an exemption was introduced covering sales contracts, the subject of which is the ownership of a dwelling which is a separate property, the ownership of a single-family housing building, the cooperative property right to the premises relating to a dwelling or a single-family home. This exemption shall apply if the buyer is a natural person or a natural person:

• which, on the date of sale and before that date, did not enjoy any of the abovementioned rights or participation in those rights, or
• which, on the date of sale and before that date, was entitled to a share in any of the abovementioned rights, but that share does not exceed or exceed 50% and was acquired by inheritance.

It therefore applies to the purchasers first apartment or house.

[1] Accordingly:

• Act dated 29 August 1997 - Tax Ordinance (i.e. Journal of Laws of 2023, item 2383 as amended);
• Act dated 26 July 1991 on personal income tax (i.e. Journal of Laws of 2022, item 2647 as amended);
• Act dated 15 February 1992 on corporate income tax (i.e. Journal of Laws of 2023, item 2805 as amended);
• Act dated 11 March 2004 on tax on goods and services (i.e. Journal of Laws of 2023, item 1570 as amended);
• Act dated 12 January 1991 on local taxes and charges (i.e. Journal of Laws of 2023, item 70 as amended);

Act dated 9 September 2000 on tax on civil law acts (i.e. Journal of Laws of 2023, item 170 as amended).

[2] Read more in a separate article: HERE

Authors:

Michał Zdanowski, Mateusz Krawczyński and Damian Kuszewski