Planned changes to the competence of tax offices – largest taxpayers, WHT and MDR
Bills of amendments which will result in setting up a single all-Poland specialized tax office were published on the website of the Government Legislative Centre on 18 and 19 November 2020. The Office will be dedicated to handle capital groups, their member companies and the so-called ‘key entities’. Consequently, the centralized tax office, based on the First Mazovian Tax Office in Warsaw, will handle matters related to the largest companies in Poland.
Who is affected by the changes?
The centralization of competence of the tax office will apply to:
- taxable persons whose income/turnover exceeded EUR 50 million,
- state-owned and national banks operating as joint-stock companies,
- national insurance and re-insurance companies,
- fiscal unities (tax capital groups) and their member companies,
- companies listed on the stock exchange.
There will also be 19 specialized tax offices operating in all voivodships [PL: województwo], which will handle taxable persons whose income exceeds the equivalent of EUR 3 million (and not EUR 5 million, which was the case so far). The change also applies to taxable persons whose tax year is not the calendar year. In this case, the obligation to change the office is established according to data for the tax year ended in 2019.
Moreover, the planned regulations provide for a change of competence of tax offices for investment and pension funds, representative offices and branches of foreign enterprises, which will be handled by the Second Mazovian Tax Office in Warsaw.
There are also plans to change the competence of tax offices in respect of the withholding tax. In practice, these tasks will be rendered by a single authority, namely the Head of the Tax Office in Lublin.
The legislative process can be monitored via the website of the Government Legislative Centre.
- regulation of the Minister of Finance, Funds and Regional Policy amending the regulations on some taxable persons and remitters, with respect to which tasks are performed by the head of the tax office other than the tax office of local competence – link to the bill,
- regulation of the Minister of Finance, Funds and Regional Policy amending the regulations on the competence of tax offices – link to the bill,
Effects for taxable persons and remitters
The largest entities which have so far settled their taxes with specialized tax offices throughout Poland will be handled by a single centralized tax office responsible, without limitation, for verification of VAT and CIT settlements, acceptance of VAT refund payments, tax inspections and proceedings (also in cases concerning acknowledgment of overpayment), as well as penal fiscal proceedings.
This change may lead to a changed approach of the new fiscal authority to some aspects of tax settlements. This is because the aim of the regulations is to structure the non-unified practices of tax authorities with particular emphasis on the approach to the so-called “key taxpayers”.
Additionally, acquiring the competence to resolve matters of withholding tax collection by the Head of the Lublin Tax Office, given the numerous controversies triggered by application of the regulations, may give rise to additional complications in this respect.
Therefore, it can be expected that the number of inspections by tax authorities may increase in connection with the process of consolidation of the tax policy.
Change of competence in respect of MDR
On 27 November 2020, another bill was published amending the regulation of the Minister of Finance, Funds and Regional Policy, whereupon the competence of the authority in respect of tax scheme reporting was changed.
According to the bill, the Head of the National Fiscal Administration will authorize the Head of the Fiscal Administration in Olsztyn to perform the tasks of the National Fiscal Administration in certain matters concerning:
- assignment of the Tax Scheme Number (NSP),
- assignment of the cross-border tax scheme notification number (NZSPT),
- confirmation of NSP assignment,
- requesting the information provider for additional information and clarification of doubts regarding said information,
- issuance of a decision denying to assign the NSP,
- issuance of a decision cancelling the NSP,
- leaving the tax scheme information unattended,
- delivery of confirmation of NSP assignment and other writs,
- issuance of a decision refusing to open the NSP assignment procedure,
- issuance of a decision cancelling the NSP assignment procedure.
In practice, MDR-1, 2, 3, 4 will be addressed to a different authority – the documents will still need to be reported to the Head of the National Fiscal Administration (KAS), but the subsequent processing of the filed documents will be made by the authority in Olsztyn.
According to the explanatory memorandum, the change is intended to facilitate the assignment of the NSP and to improve the effectiveness of the cross-border tax scheme information exchange.
Pursuant to the current version of the bill, the new rules are to enter in force on the day following promulgation of the regulation.
Potential changes to provisions of the Regulation can be tracked on the website of the Government Legislative Centre: link to the bill.
Should you have any questions or doubts related to the planned regulations, you are welcome to contact us.