Shortcomings and omissions of the special ‘shield package’ for companies – tax issues
On behalf of the Kochański & Partners tax advisory team, please be advised that the draft “Shield Package for Companies” announced by the Ministry of Development has been published.
In this report we present solutions (proposed by either the Ministry of Development itself or tax experts and employers’ organizations), which – despite earlier announcements – have not been included in the draft Shield Package. We also identify those provisions of the draft that are unfavourable for businesses.
No regulations on accelerated VAT refunds and split payment facilitations
- Despite earlier announcements, the draft does not include any solutions to accelerate VAT refunds to Taxpayers’ accounts;
- The draft does not provide for any simplification of the split payment mechanism.
No extension of the deadline for fulfilling recording obligations
- The draft Shield Package does not contain any provisions to defer recording obligations such as submitting of CIT-8, IFT2R or CbC-P forms, which most taxpayers must do by 31 March 2020.
No deferment of PIT, CIT and VAT payments
- The draft does not provide for any extension of payment deadlines for income taxes (PIT and CIT) and value added tax;
- An exception to this is the possibility of suspending the collection of advance tax payments on account of, among others, employment of public officers (tax remitter’s obligations).
Postponement of “tacit tax rulings”
- The proposed regulations provide for the possibility of extending the deadline for issuing advance tax rulings by another three months. This will have a negative effect on taxpayers by postponing the so-called “tacit tax rulings”;
- In accordance with existing regulations, if the tax authority fails to issue an advance tax ruling within three months, the taxpayer will be deemed to have obtained a favourable ruling (the so-called “tacit tax ruling”). Under the new regulations, the possibility of obtaining a tacit tax ruling will be postponed for at least another three months.
Apparent “postponement” of the deadline for the submission of TPR-C
- The shield package provides for postponement until 30 September of the submission of TPR-C forms for businesses whose financial year is less than 12 months and ended before 31 December 2019
- It should be noted, however, that under the current regulations, taxpayers whose financial year ends on 31 December are obliged to file TPR-C by 30 September;
- Consequently, the postponement of the deadline for the submission of TPR-C is not a real facilitation for companies which are obliged to submit such reporting.
Advocate, Partner, Head of Tax Practice
M: +48 668 886 370