Publications

The Ministry of Finance published a proposal of the next law aimed at the effective improvement of VAT collectability. The so called split payment is to be available as of 1 January 2018 and is envisaged only for B2B transactions.

On 11 May 2017, a judgment was given in Case C-36/16 Minister of Finance vs Posnania Investment SA. The request for a preliminary ruling covered determination whether the transfer of ownership of land (the tangible property) by a taxable person to the State Treasury, a municipality, district or regional authority in settlement of tax arrears constitutes a transaction that is subject to tax (supply of goods for consideration).

In the settlement of corporate income tax, a taxpayer in principle has no right to deduct a tax loss incurred by its branch (permanent tax establishment) located in another country. However, in certain circumstances the impossibility to deduct a tax loss of a foreign branch in a Polish tax return prepared by a CIT taxpayer may violate the principle of freedom of establishment expressed in Article 43 of the Treaty establishing the European Community.