An individual interpretation can be obtained even when a general interpretation has been issued
It is permissible to obtain an individual tax interpretation even though a similar issue was the subject of a general interpretation, according to rulings of the WSA in Rzeszów.
The rulings concerned entrepreneurs operating within the Polish Investment Zone on the basis of support decisions. The taxpayers were planning investments to increase their capacity to produce the same products as before, on the same area.
As a result, a doubt arose as to whether income from the new investment could be subject to full tax exemption.
The tax authority refused to issue individual interpretations and considered the applicants’ position as irrelevant. According to the Director of the KIS, the general interpretation of the Minister of Finance of 25 October 2019 was applicable in these cases. (No. DD5.8201.10.2019), referring to the so-called close links test.
The interpretations were appealed to the WSA in Rzeszów, which in its rulings of 19 October 2023, file no. I SA/Rz 338/23, and 13 February 2024, file no. I SA/Rz 575/23, indicated that there should not be situations in which a party has only general assessments and guidelines to use when assessing its rights and obligations, without having a clear and explicit resolution of its problem.
In the Court’s opinion, the authority should, within the framework of an individual interpretation, in this particular case, in this particular investment, within the framework of the production process carried out, give the Company a clear and specific answer as to whether its position is correct.
This position was also confirmed in the most recent judgment of 23 April 2024, ref. no.: I SA/Rz 87/24.
– Thus, an emerging positive line of rulings shows that taxpayers have the right to request an individual interpretation, even when a similar issue was covered by a general interpretation. This is especially true when the general interpretation does not answer all tax doubts that may arise in the realities of doing business,’ notes Adam Rzepa, a consultant at Thedy & Partners.