Polish governance is in consultation. It is time for changes
The draft amendment of tax regulations under the Polish Order is a document of 226 pages. The changes are large and significant, which is why public consultations will last as long as 5 weeks and will end on 30 August. This is the moment when comments on the proposed solutions can be submitted.
– Presentation of ideas for changes in taxes within the framework of the Polish Order caused an avalanche of comments. The publication of specific solutions in the draft amendment only deepened these comments. Consequently, many questions arose about the effects of the new regulations in practice and their application by entrepreneurs. The decision of the Ministry of Finance to extend the public consultation period comes as no surprise. This will allow us to gather the opinions of business and tax experts, among others, which will hopefully result in working out the best solutions for taxpayers,” comments Michał Thedy, tax adviser, partner at Thedy & Partners.
What is the expected course of work on the amendment? In September, the draft will probably be sent to the Sejm. In order for the provisions to enter into force as of 1 January 2022. – Especially with respect to income tax, the Sejm will have to pass them by mid-October for the Senate to complete its work by mid-November. Then, the Sejm will have time to analyse the work of the Senate, and the passed amendment could be published in the Journal of Laws by the end of November.
Let us remind that among the plans for changes in taxes are:
- Increasing the tax-free amount to PLN 30 thousand and increasing the first threshold of the tax scale to PLN 120 thousand,
- Eliminating the deduction of health contributions from tax,
- Changes in the current reliefs, e.g. R&D and IP Box or introduction of new ones, e.g. for prototype, support of new employees, robotisation,
- Introduction of relief for IPO, consolidation and expansion,
- Introduction of Investor Desk and Interpretation 590,
- Possibility of creating VAT groups.
We have informed about the proposals of the Polish Order on an ongoing basis since their announcement. Now we are going to analyze particular solutions included in the project and indicate their effects in practice.
We invite you to follow our profile on LinD, as well as on our website: www.thedy.pl