Despite the fact that the new regulations on debt financing costs (Article 15c of the CIT Act) have been in effect for more than 3 years, the practice in this regard is still not properly established. The Supreme Administrative Court’s verdict on March 1, 2022, although it does not explicitly refer to leasing, may be problematic for some taxpayers.
From the beginning of 2022, persons appointed to perform functions by virtue of an act of appointment who receive remuneration in this respect, such as members of the management board, have been covered by the obligation to pay healthcare contribution. However, the matter is not clear in the case of foreigners, as well as proxies. The solution may be a request for an individual ruling to the NFZ (National Health Fund).
Although leasing companies are not included among the financial institutions excluded from the risk of paying the minimum tax, in practice the minimum tax will probably not apply to them anyway, even if their “initial” profitability is 1%. However, there is a small group of customers who, because of the minimum tax, might be interested in changing their form of financing from leasing, for example, to a loan.
Factoring as an alternative to leasing contracts? This could be an interesting solution, particularly in the era of the Polish Deal, through which the excess of debt financing costs within the limit set by the amount of PLN 3,000,000 or the value of 30% of the EBITDA obtained in the tax year can be included in tax expenses. The WSA in Warsaw ruled that full factoring does not constitute debt financing at all, so it is not subject to the above limits.
A new judgement of the Supreme Administrative Court regarding the possibility of applying the so-called bad debt relief may be interpreted as a defense of the tax authorities’ interests. The court stated that Polish regulations, which stipulate that the relief may be utilized only in cases where the 3 years period has not passed from the date of issuance of the invoice documenting the debt, are not contrary to EU law. This is a bad news for leasing companies, among others.
The Ministry of Family and Social Policy is working on the bill to standardise the rules of remote work. The draft stipulates that performing remote work will require an agreement with the employer, who will reimburse employees the cost of working outside the office. However, the employer will also be able to control the presence and work of the employees.
The Polish Deal proposes the introduction of a new personal income tax allowance to encourage Poles (but not only!) living abroad to return to the country. Taking advantage of it will entail significant savings.
Among the solutions introduced by the Polish Deal are new tax reliefs. One of them will allow taxpayers who incur certain expenses on works related to historic buildings to make deductions. The relief will also be available in case of purchase of a historic property.
Limiting the possibility of tax depreciation of real estate in the so-called “real estate companies”, modification of the principles of taxation of residential leases and exclusion of tax depreciation of residential real estate – these are the most important changes from the Polish Deal that will have an impact on the real estate market.
Although the current regulations on the Acquisition of real properties by foreigners provide for a number of exemptions from the obligation to obtain a permit from the Minister of Interior, as of January 1, 2021, citizens of the United Kingdom must apply for the permit. The permit will also be necessary if foreigners want to purchase real estate located in the so-called border belt.