What notifications are the entrepreneurs obliged to submit to the Tax Office in 2020? Part 2

Service-Tax

Notifications to the Tax Office to the competent head are still one of the obligatory communication elements between the taxpayer and the tax office. Which notifications remain the responsibility of the taxpayer as still obligatory? These and other notification matters are covered in this second part of the publication.

Notices to the Tax Office about payment to an account other than the one appearing on the white list

Taxpayers from January 2020. are obliged to pay for an invoice of PLN 15,000 gross and above to a specific business account of the contractor, appearing on the white list.

However, if the entrepreneur makes a mistake and pays to a contractor's account other than those on the white list, then he has the option to submit a notification to ZAW-NR about this fact within 3 days from the date of ordering the transfer to the head of the tax office competent for the issuer of the poorly paid purchase invoice.

The said notification may be submitted by the taxpayer both in paper and electronic form (on the pages of a trusted profile).

An effectively submitted ZAW-NR notification will allow the taxpayer to include a given invoice as corporate costs and to avoid the issue of joint and several liability for unpaid VAT of the seller related to a given invoice.

Inventory of nature

Bearing in mind the event of the liquidation of the company, active VAT taxpayers who cease to carry out taxable activities are required to submit the notification to the Tax Office to the competent head, along with the last VAT declaration, information about the inventory prepared for VAT purposes.

The entrepreneur does not submit the physical inventory for VAT purposes together with the above-mentioned documents. However, the notifications themselves to the Tax Office may be sent in paper or electronic form. It should also be remembered that the taxpayer includes both the amount of tax due on the value determined in the physical inventory in the last submitted VAT-7 or VAT-7K declaration in table C, point 16.

Beware of any donations returned

Taxpayers who donate and have the right to deduct them, show in the submitted annual tax return possible deductions from the income of the amounts of donations or the value of the goods.

However, at this point it is necessary to indicate an extremely important aspect, just in case.In the circumstances, if the recipient, however, returns the donation to the donor, the latter will be obliged to submit a notification to the Tax Office to the competent head of the information about the event, i.e. the donation returned, within one month from the date of return.

Spouses with rental income

Spouses remaining in joint property who obtain income from the source of income from rental, sublet, lease and other contracts of a similar nature, settle income from this source with each of the spouses:

  1. in proportion to his right to a share in the profit (share in the property or property he owns), and
  2. it is combined with other income from sources from which the income is taxed according to the tax scale.

If the size of the shares is not specified, it should be assumed that the rights to participate in the profit (share) are equal.

The above method of settlements is used to settle costs, losses and concessions related to the conducted activity in the form of a company which is not a legal person.

If the spouses between whom there are joint property, earn income from the above-mentioned sources of income, they may submit to the competent head of the tax office a written declaration of consent to tax all these income by one of the spouses.

The taxpayers should submit the above declaration no later than by the 20th day of the month following the month in which they received the first income in a given tax year from the source of income for renting common property.

Spouses should also remember that the choice of the method of taxation of revenues from joint ownership made by the declaration is valid throughout the year and the following years. However, in the new year, before the spouses receive the first income from the lease of joint ownership, they may send a notification to the Tax Office to the competent head of the resignation from taxation of all given income by one of the spouses.

The exceptions are situations in which during the year the circumstances of separation or divorce occurred, as a result of which the property forming part of the community property was divided.

The declaration on the choice of the method of taxation of income from the lease of things belonging to the property community may be signed by one of the spouses and remains valid as if it had been signed by both of them. However, it should be remembered that this statement is confirmed to be factually correct. Otherwise, the taxpayer will be held criminally liable for making false statements.

Income from special departments of agricultural production

Taxpayers who earn income from special agricultural products are required to recognize them in accordance with the rules applicable to the identification of income from economic activity, if the taxpayer keeps tax books.

Pursuant to Art. 15 sec. 1 and 2 of the Personal Income Tax Act, before the taxpayer starts keeping PKPiR or commercial books, he is obliged to provide a notification of his intention to establish a competent head of the tax office before the beginning of the tax year or before the start of special departments of agricultural production, if it took place during year.

However, when the taxpayer was obliged to keep books of accounts on the basis of the Accounting Act, then the obligation to establish the book does not occur. Start a free 30-day trial period with no strings attached!

Notifications to the Tax Office, and transfer pricing documentation

Under Art. 23y of the Personal Income Tax Act, related entities are required to prepare transfer pricing documentation, and are required to submit a declaration of its preparation to the competent head of the tax office within 9 months after the end of the tax year.

The said declaration may be submitted only by means of electronic communication.

Exemption from paying advances for income tax for people starting a business - tax credit

Pursuant to Art. 44 sec. 7a of the Personal Income Tax Act, taxpayers who or reopened a business for the first time and did not run it within 3 years from the end of the year preceding the year of its commencement may be exempt from the obligation to pay income tax advances in the following tax year:

  1. immediately after the year in which they started to conduct this activity, if in the year of its commencement this activity was conducted for at least the full 10 months, or
  2. two years after the year in which they started to conduct this activity, if the condition referred to in point 1 has not been met.

Taxpayers who take advantage of the tax loan will be able to pay off the income tax at the rate of 20% per annum for the next 5 years.

The above exemption applies to taxpayers who submit a notification to the Tax Office to the competent head of the office, a written declaration of their intention to take advantage of this exemption by January 31 of the tax year in which the exemption is to be active.

In addition to the declaration pursuant to Art. 44 sec. 7c of the Personal Income Tax Act, taxpayers wishing to take advantage of a tax loan must also fulfill the following statutory conditions:

  1. in the period preceding the year of taking advantage of this exemption, they achieved average monthly income from non-agricultural economic activity in the amount of the PLN equivalent of at least EUR 1,000, converted according to the average EUR exchange rate announced by the National Bank of Poland, on the last day of the year preceding the year of commencement of this activity,
  2. from the date of commencement of non-agricultural business activity until January 1 of the tax year in which they begin to take advantage of the exemption, they were a small entrepreneur within the meaning of the provisions on economic activity, and in the period preceding the year of taking advantage of the exemption, they were employed, on the basis of an employment contract, every month every month at least 5 people converted into full-time jobs,
  3. in the non-agricultural business activity they do not use fixed assets and intangible assets, as well as other assets with a value of at least EUR 10,000, made available to them free of charge by persons belonging to tax groups I and II within the meaning of the provisions on inheritance and donation tax, used previously in business activities conducted by these persons and constituting their property,
  4. in the year of exemption, they are taxed according to the tax scale.