Joanna Prokurat | In Principle

Starting 12 July 2023, the European Commission can initiate investigations into financial support granted to undertakings by countries outside the European Union, pursuant to the Foreign Subsidies Regulation (FSR). The purpose of the regulation is to combat distortions in the EU single market caused by foreign subsidies, while keeping the EU open to trade and investment.

The Council of Ministers has adopted an amendment to the Programme for Supporting Investments of Strategic Importance to the Polish Economy for 2011–2030, under Resolution 91/2023 of 5 June 2023. The changes will be in effect until the end of the support period (2025).

In this episode Agnieszka Godusławska and dr Joanna Prokurat, explain on what legal grounds Polish companies can employ board members.

Rail infrastructure and the land on which it is located are exempt from property tax in Poland. Is that unauthorised state aid? The answer from the Court of Justice could have far-reaching consequences.

How VAT should be charged on trading in NFTs is of interest to taxpayers and tax authorities in various European Union countries, which sometimes take different approaches. On 21 March 2023, the EU VAT Committee published Working Paper no. 1060, entitled “Initial VAT reflections on non-fungible tokens,” touching on a number of issues concerning the VAT treatment of NFTs. As NFT transactions, including high-value ones, become more common, the tax treatment of these tokens and operations involving them, including on VAT grounds, should be fairly assessed, and the working paper may have a significant impact on this assessment.

High energy prices are greatly impacting economies around the world. Recognising the state of crisis, the European Union is introducing a number of amendments to the law to mitigate the effects of high electricity prices. In Poland, support instruments are governed by the Electricity Price Act and are intended to benefit electricity end users such as households and SMEs. Thus for companies it is crucial to assess their own size.

For the costs of developing a computer game to be tax-deductible, they must meet certain criteria. Tax-deductible costs are costs incurred for the purpose of earning revenue from a source of revenue or retaining or securing a source of revenue, except for costs expressly excluded from tax-deductible costs. The method of accounting for these costs depends on whether work on the creation of a new game can be regarded as development work.

Whether a foreign undertaking should notify the Social Insurance Institution of contracts for specific work it has concluded is determined primarily by whether the undertaking has the status of a remitter of contributions within the meaning of Polish law.

The bill published on 26 July 2021 to amend the Personal Income Tax Act, the Corporate Income Tax Act and certain other acts, known as the Polish Deal, provides payers of personal income tax with a new preference to encourage investments in ventures carrying high economic risk. The proposed relief is intended to apply to certain investments by PIT payers in an alternative investment companies or their subsidiaries.

The bill to amend the Personal Income Tax Act, the Corporate Income Tax Act and other acts published on 26 July 2021, known as the “Polish Deal,” includes new rules for tax depreciation of real estate held by real estate companies. The proposed changes could significantly limit the value of tax costs from depreciation.

The Ministry of Finance has proposed regulations allowing for conclusion of an investment agreement (also called a “590 interpretation”) between an investor and a tax authority—an agreement on the tax consequences of a planned or commenced new investment in Poland. It is supposed to constitute a binding opinion for the tax authorities on all tax consequences of the planned investment. Thus the investment agreement should be an effective tool for removing investment barriers in Poland and thus encouraging more investments, including foreign investments. In particular, it will be addressed to foreign entities planning to commence business in Poland, but current taxpayers in Poland will also be able to take advantage of it.

Poland will be the biggest beneficiary of the upcoming European Union financial perspective for 2021–2027. The two main objectives for funding in the new financial perspective, i.e. Smart Europe and Green Europe, are in line with the objectives of the modern automotive sector. Therefore, its players can count on solid support.