New tax rules have entered into force in Poland: key changes for citizens and businesses

In Poland, from October 1, changes to the Tax Ordinance have entered into force, which simplify a number of procedures for taxpayers and entrepreneurs. The new rules concern the return of overpayments, correcting errors in declarations, paying tax for another person, limitation periods and work through representatives.

One of the main simplifications concerns return of overpaid tax. If after correcting the declaration an overpayment arises of up to 10,000 zlotys, the taxpayer, as a rule, no longer needs to submit a separate application for its confirmation. The tax authority will be able to perform the settlement based on the corrected declaration itself.

If the overpayment exceeds 10,000 zlotys, a written explanation of the reasons for the correction will have to be attached to the correcting declaration. Previously, the procedure for returning the overpayment often required simultaneously filing a declaration, a separate application and additional documents.

The threshold has also increased, within which the tax authority can independently correct obvious arithmetic errors and inaccuracies in declarations. Previously, such correction was possible if the change in the tax amount or overpayment did not exceed 5,000 zlotys. Now the limit is 10,000 zlotys.

It has also become easier to pay tax for another person. The maximum amount of such payment has increased from 1,000 to 5,000 zlotys. This can be useful, in particular, when the tax liability of a relative or another person is paid by someone else.

Another change allows applying for full or partial waiver of tax before the due date for its payment. Previously, such a procedure could only be applied after the emergence of tax arrears. At the same time, the decision remains at the discretion of the tax authority - the mere filing of an application does not guarantee a waiver.

The rules regarding limitation periods are also changing. If the last day of the period falls on a Saturday, Sunday or public holiday, it will no longer be automatically postponed to the next working day. As a result, in individual cases, the tax liability will expire earlier than under the previous rules.

Work through representatives has also been simplified. Now any authorized representative, not only an attorney, legal advisor or tax advisor, can notify about the change or termination of a general power of attorney. In addition, a person summoned by the tax authority to provide explanations will be able to submit them through a representative.

At the same time, the new rules limit the possibility of obtaining individual tax interpretations regarding MDR tax planning schemes. The Polish authorities have also reduced some of the obligations to report internal tax schemes.

The changes are also important for Ukrainians who live or do business in Poland and are taxpayers there. The most practical innovations for them may be the simplified return of small overpayments, a higher limit for automatic correction of declarations and a reduction of some formalities in contacts with the tax authority.

Based on materials from: Business Insider Polska, Elektroniczny Dziennik Ustaw