Deadline for preparation of TP documentation
The deadline for submission of the transfer pricing information and the statement on preparation of a local file ends on 31 December 2020 for those entities whose tax year overlaps with the calendar year.
On 15 September 2020, the Minister of Finance issued a long-awaited general ruling concerning the requirements for applying 50% deductible costs to calculate income from disposal or use of copyright by its owners. The interpretation defines when and under what conditions remuneration can be recognized as a royalty to which the increased tax costs apply.
The value of income from the use of company cars for employees’ private purposes is determined as a lump sum in the PIT Act. The Minister of Finance, in a general ruling issued on 11 September 2020 (DD3.8201.1.2020), confirmed that the lump sum also includes the value of fuel purchased by the employee on the employer’s account.
The latest proposals of changes to CIT and PIT regulations prepared by the ministry of finance attract comments primarily in the context of CIT imposed on limited partnerships and some registered partnerships. However, the bill of amendment, published on 16 September on the website of the Government Legislative Centre, also provides for numerous new solutions in the area of transfer pricing. Additionally, further improvements connected with COVID-19 are planned.
Last Friday, on 19 June 2020, the Sejm passed the Act on subsidies to interest on bank loans provided to COVID-19-affected entrepreneurs and on simplified procedure for approval of a composition in connection with COVID-19 (hereinafter “the Act”), also known as Shield 4.0. The Act also amends tax regulations.
On 6 May 2020, the Sejm passed an amendment to the Corporate Income Tax Act (CIT Act), the Personal Income Tax Act (PIT Act), the Flat-rate Income Tax and Tax on Goods and Services Act (the VAT Act) as well as the Tax Code. The bill will now be considered by the Senate, at the moment it is examined by the Budget and Public Finance Committee.
The Bill of Amendment to the Act on special solutions for prevention, counteracting and combatting COVID-19, other infectious diseases, and the resultant crisis, and to some other acts was made available on 21 March 2020. The Bill introduces the so-called anti-crisis shield intended to protect enterprises which are facing difficulties due to SARS-COV-2 pandemic.
With regard to the dynamic development of the epidemiological situation related to the spread of the SARS-CoV-2 coronavirus, in the communication of 11 March 2020, the Ministry of Finance announced that those entrepreneurs who experience difficulties with the timely payment of their taxes as a result of the epidemic may request a tax relief or a write-off of their tax arrears.