Newsletter IC&PARTNERS POLAND – 2023-06
info@icpartnerspoland.pl

Important change for employers
The Sejm is dealing with a controversial parliamentary bill, which provides for, among other things, amendment of the provisions of the Code of Civil Procedure. The proposed changes are extremely important for both employees and employers. According to the proposed wording of Art. 4772 pairs 2 k.p.c. the labor court, considering the termination of the employment contract ineffective or reinstating the employee to work, will have to impose in its judgment on the employer the obligation to continue employing the employee until the final conclusion of the proceedings. If the Sejm adopts the bill in the proposed wording, the labour court will have no other option than to order the employee to continue to be employed until the final conclusion of the proceedings. The draft act is to enter into force on January 1^st, 2024. If the act enters into force in the proposed wording, it will be another anti-stimulus for employers to conclude employment contracts for other forms of legal employment.

Slim Vat Package 3
On June 1^st, 2023, President Andrzej Duda signed the Act of May 26^th, 2023 amending the Value Added Tax Act and certain other acts (commonly referred to as SLIM VAT 3). This amendment includes not only changes in VAT but also several changes in personal income tax (PIT). Most of the changes will come into effect on July 1^st, 2023.

Major changes:

1. The sales value limit of a small taxpayer was increased to EUR 2 million, which will increase the number of taxpayers entitled to use the cash accounting method and quarterly VAT settlements.

4. The rules for applying the conversion rate for correcting invoices were clarified, if the invoice was issued in a foreign currency, if the difference between the preliminary and final proportion does not exceed 2 p.p. correction is not required).

5. Simplifications were introduced in the field of reporting settlements regarding invoicing (e.g. adapting the conditions for issuing invoices to e-receipts) and keeping sales records using cash registers (e.g. the possibility of waiving the obligation to print fiscal documents by taxpayers). A new electronic receipts distribution system was introduced.

6. The issuance of binding information has been consolidated by appointing one authority competent to issue WIS (Binding Rate Information), WIA (Binding Excise Information), BTI (Important Transaction Information) and WIP (Binding Origin Information). The fee for issuing WIS has also been abolished.

7. The deadlines for the entry into force of the obligation to keep books electronically and to submit them to tax authorities (JPK_PIT and JPK_CIT) have been postponed by one year.

8. Higher amounts exempt from inheritance and gift tax

From July 1^st, 2023, the following amounts will be tax-free up to the value of assets:

PLN 36,120 - if the buyer is a person classified in the first tax group;
PLN 27.090 - if the buyer is a person classified in the second tax group;
PLN 5.733 - if the buyer is a person classified in the third tax group.

Energy certificates
From April 28^th, 2023, a fine of up to PLN 5,000. threatens the seller of an apartment (house) or the landlord for failure to comply with the obligation to provide the buyer or tenant with an energy performance certificate when drawing up a notarial deed of a sales contract or concluding a rental contract.

Inflation and average average salary May 2023
In May 2023, inflation in Poland amounted to 13%, as reported by the GUS, the Central Statistical Office. The average monthly salary in the enterprise sector in May 2023 compared to May 2022 was higher by 12.2% and amounted to PLN 7,181.67 (gross). Relative to April this year, the salary decreased by 3.4%.

Taxes 2024
Deputies of the Civic Coalition (KO - Koalicji Obywatelskiej) submitted to the parliament a draft amendment to the law on income tax, which proposes to increase the tax-free amount from the current PLN 30,000 to PLN 60,000 starting from beginning of 2024. In case the tax base is less than or equal to PLN 120,000, the tax would be equal to the difference between 12% of the tax base and the amount of PLN 7,200. As a result, people receiving wages of around PLN 6,000 gross per month will not pay any income tax.