3 positive changes in tax regulations for businesses

Following the work of the Polish Parliament, the newly adopted act (of 10 September 2015) on the amendment of the Tax Ordinance Law introduces significant tax changes for entrepreneurs.

The general aim of this amendment is to simplify tax procedures and improve the tax collection system.

The most important changes are as follows:

1. Register of General Powers of Attorney

Introduction of a general power of attorney – in addition to the specific power of attorney for individual matters – based on which the taxpayer may be represented in all tax matters. Such powers of attorney will be submitted electronically to the central register, and exempt from tax duty.

In our opinion, a central register of general powers of attorney is a solution that will enable the taxpayer to act through its professional attorney, without the necessity of furnishing copies of the power of attorney in each individual case.

2. Changes in calculating late payment interest

Calculation of late payment interest will be carried out in accordance with two additional rates:

• Reduced rate (50% of the late payment interest) – in order to promote self-correction of errors in declarations submitted by taxpayers

• Increased rate (150% of the late payment interest) – in order to prevent tax avoidance in high risk areas, such as VAT, excise duty, customs duty

You could say that finally, the taxpayer who corrects the declaration on its own initiative will be treated more favourably than those ‘caught’ by the tax office. A good solution for reliable taxpayers!

3. “Group” tax interpretation

The changes involve also the introduction of a group application for legal interpretation of tax provisions. Thus, apart from the individual interpretation, the tax authority will also issue group interpretations applicable to a bigger number of taxpayers with similar factual status. This change should be regarded as a milestone!

We do hope that such positive proposals for taxpayers will be put into practice.

The Act is to enter into force as of 1 January 2016. The draft is still waiting to be signed by the President.