Change of jurisdiction of tax offices following the New Year
In the last days of 2020, the Minister of Finance issued a regulation amending the regulation on the jurisdiction of tax authorities and a new regulation on certain tax remitters and taxpayers in relation to whom tasks are performed by the head of a tax office other than the locally competent one. Both came into force at the beginning of the new year, and taxpayers and tax offices must find their way in the new reality.
The changes are based on the assumption that the largest taxpayers are to be dealt with by a specialised "super-office" - the First Mazovian Tax Office in Warsaw. Nineteen specialised offices with local coverage will focus on large businesses. Smaller businesses with foreign capital will again be served by the remaining tax offices.
The Head of the First Mazovian Tax Office in Warsaw will focus on services for tax remitters and taxpayers whose revenues exceed EUR 50 million. His jurisdiction also covers, irrespective of the revenue threshold, tax capital groups and their constituent companies, banks, insurance companies and public companies.
Heads of specialised offices, in principle operating within the territory of a voivodeship, will serve foreign companies with annual revenues of at least EUR 3 million and other legal entities and organisational units conducting business (excluding civil-law partnerships) with revenues between EUR 3 million and 50 million. Branches and representative offices of foreign companies, local government units, cooperative banks, SKOKs (Credit and Savings Unions) and universities are also subject to the specialised offices, regardless of their respective revenues.
The payment of withholding tax has also been centralised. As regards lump-sum corporate income tax collected by remitters on incomes collected from non-residents, the jurisdiction is exercised by the Head of the Lublin Tax Office in Lublin.
In order to verify whether or not the individual revenue thresholds have been exceeded, the level of revenue is determined, depending on the category of the entity, on the basis of the annual CIT declaration or financial statement. If it is not possible, the total net value of delivery of goods and provision of services (both within and outside the country), intra-Community delivery of goods and export of goods resulting from the VAT returns for one tax year should be taken into account.
In 2021, the inclusion in the specific revenue thresholds is based on the data for 2019 or, if the tax year does not coincide with the calendar year, on the data for the last tax year that ended no later than in 2019.
As a rule, taxpayers and remitters to whom a threshold applies are obliged to notify in written form the previously competent head of the tax office of the change of jurisdiction . However, it does not apply to entities included in or excluded from an appropriate category on January 1, 2021 on the basis of the newly applicable thresholds. The transfer of such clients should then be made between the respective offices by virtue of law, of which the new office is obliged to inform those concerned.
Magdalena Walczyńska, Tax Consultant, ATA Tax Sp. z o.o.
Interested in the subject?