CHANGES IN TAXES 2023
2023 brought changes in tax regulations. Below we present an outline of the most important changes that may affect tax settlements this year.
Changes in PIT
- Tax-free amount - from 1 January 2023, the taxpayer is able to indicate up to three remitters who (in the appropriate proportion) will be required to take into account the tax-reducing amount of PLN 300.
- New PIT-2 form - a new PIT-2 form will apply to income (revenue) earned from 1 January 2023.
- 1.5% tax for public benefit organizations - in the annual return for 2022, it will be possible to transfer 1.5% of PIT to a selected public benefit organization (as opposed to 1% of PIT in the previous years).
Changes in CIT
- Minimum Income Tax - the minimum income tax (which was supposed to cover entities with low income or incurring losses) was suspended in 2022-2023. This means that the minimum income tax (for taxpayers whose tax year coincides with the calendar year) will be paid for the first time by the end of March 2025. At the same time, changes in the structure of this tax will be introduced, including, among others, extension of the list of exempt entities and modification of the rules for determining the tax base.
- Diverted profits tax - from 1 January 2023, a number of changes in the tax on diverted profits will come into force. In particular, the conditions for recognizing certain costs as diverted profits will change, for example, a condition taxed at a rate lower than 14.25% will no longer apply to the entire earned income. In addition, from 1 January 2023, taxation with the diverted profits tax may also apply to related entities from the so-called tax havens or from countries with which no international agreement has been concluded giving the basis for the exchange of tax information.
- Hidden dividend - the Hidden Dividend Regulations have been repealed.
- WH-OSC statement - WH-OSC is a declaration submitted by the remitter, which (in certain cases) allows for the application of preferential withholding tax rules. From 1 January 2023, the remitter will be able to use the first WH-OSC declaration until the end of the tax year in which it was submitted. In turn, the deadline for submitting a follow-up declaration has been extended to the last day of the month following the end of the tax year.
- Direct and indirect tax haven transactions - documentation obligation in relation to the so-called indirect haven transactions has been repealed with retroactive effect from 1 January 2021. From 1 January 2023, the documentation thresholds for direct tax haven transactions will be increased, respectively in the case of a financial transaction - up to PLN 2,500,000 and in the case of other transactions - up to PLN 500,000
- Bad debt relief - as of 1 January 2023, the obligation to prepare CIT-WZ and CIT-WZG attachments to the CIT-8 tax return (in which receivables or liabilities covered by bad debt relief had to be demonstrated) will be waived. This change will apply starting with the settlements for 2023.
- Social security contributions in the part that is financed by the employer and tax costs - from 1 January 2023, ZUS contributions in the part financed by the employer will constitute tax deductible costs in the month for which remuneration is due, provided that the contributions are paid within the time limit resulting from separate regulations. Otherwise, ZUS contributions will be a tax expense on a cash basis.
- Estonian CIT - from 1 January 2023, further simplifications will be introduced for Estonian CIT, including:
- in order to meet the condition of incurring certain expenses for the payment of salaries, it is enough for the taxpayer to be a remitter of PIT or ZUS contributions (there will be no obligation to actually collect advance payments),- change in the rules for qualifying certain expenses not related to running a business and concerning assets.
Changes in VAT from 1 January 2023
- VAT groups - VAT groups will start operating from 1 January 2023. A VAT group will be able to be set up by taxpayers who are financially, economically and organizationally related. Turnover within the VAT group will not be subject to VAT and will not be documented with invoices; thus there will also be no obligation to use the split payment mechanism.
Changes in VAT - planned entry into force in 2023
- Conversion rates for correcting invoices - in 2023, regulations specifying the method of calculating correcting invoices issued in a foreign currency are to come into force. Basically, the exchange rate from the original invoice is to be used to convert "in plus" and "in minus" correcting invoices. However, it should be noted that a collective correcting invoice is to be converted according to the average exchange rate of the National Bank of Poland from the last business day preceding its issue.
- Small taxpayer - in 2023, it is also planned to increase the turnover limit entitling entrepreneurs to hold the status of a small taxpayer for VAT purposes from EUR 1.2 million to EUR 2 million.
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