Polish Tax System. Business Opportunities and Challenges

This book is a unique tax law publication on fundamental elements of Polish tax system. It concentrates on key issues of contemporary tax law in Poland in particular on the assessment of legal institutions which either stand out comparing to other legal systems or require changes and reforms. The authors, giving the general image of Polish tax law, also indicate the regulations which are or potentially may be the source of tax risk for foreign business as well as on provisions which may mitigate that risk. The book is addressed to multinational companies, tax managers, tax practitioners, judges, academics and tax administration. "The authors of The Polish Tax System. Business Opportunities and Challenges undertook the task of presenting an overview of the current regulations governing the taxation in Poland. As a result the book provides a comprehensive outline of personal and corporate income taxes, VAT, the local taxes as well as the international aspects of taxation associated with double tax treaties signed by Poland. The Polish tax regulations are presented in the context of some interesting recent economic indicators and EU law currently in force. This is a 'must-have' compendium for academics and students as well as investors and their advisors who either contemplate entering Poland or deepen their business presence in the country." Dr Zbigniew Wójcik

Spis treści

Abbreviations | str. 11 Prof. Dr Włodzimierz Nykiel, Dr Michał Wilk Introduction | str. 13 Dr Anna Nykiel-Mateo Poland - Law and Economy | str. 15 1. Introductory remarks | str. 15 2. Recent history: from the World War II to joining the EU | str. 16 3. Polish economy today: growth and challenges | str. 18 4. Polish legal system | str. 20 5. Closing remarks | str. 26 Prof. Dr Włodzimierz Nykiel Polish Tax System - Basic Characteristics | str. 28 1. Tax law before 1989 | str. 28 2. Main stages of transformation | str. 29 3. Fundamental changes of Polish tax law | str. 31 4. Taxes and the financial crisis | str. 39 5. New solutions and BEPS | str. 39 Dr Michał Wilk Polish Tax Law in the Context of EU Law | str. 42 1. Introductory remarks | str. 42 2. EU tax law in the hierarchy of sources of law in the Polish constitutional order | str. 43 3. Role of the ECJ in the process of harmonization of Polish tax law | str. 49 4. EU tax law in the practice of Polish tax authorities and administrative courts | str. 52 Dr hab. Ziemowit Kukulski, Dr Małgorzata Sęk, Dr Michał Wilk General Tax Act | str. 56 1. Arising of tax liability (Ziemowit Kukulski) | str. 56 2. Rulings and other forms of guidance (Małgorzata Sęk) | str. 58 2.1. General remarks | str. 58 2.2. Advance tax rulings and tax explanations | str. 59 2.3. Protective opinions | str. 65 2.4. Advance pricing agreements | str. 66 2.5. Other forms of guidance | str. 70 2.6. Resolutions of extended panels of the Supreme Administrative Court | str. 71 3. Expiry of tax liabilities in Poland (Ziemowit Kukulski) | str. 72 3.1. General remarks | str. 72 3.2. Payment of a tax | str. 72 3.3. Remission of tax arrears / 74 3.4. Limitation period of tax liabilities in Poland | str. 75 4. Overpayment (Małgorzata Sęk) | str. 76 5. Third-party liability (joint and several liability) (Małgorzata Sęk) | str. 80 6. Tax succession (Michał Wilk) | str. 84 7. General rules of tax proceedings as procedural guarantees of taxpayers' rights (Ziemowit Kukulski) | str. 85 8. Power of attorney (Michał Wilk) | str. 87 9. Time limits (Małgorzata Sęk) | str. 88 10. Evidence and evidentiary procedure (Ziemowit Kukulski) | str. 90 11. Appeal procedures (Małgorzata Sęk) | str. 93 12. Verification of a final decision settled (Ziemowit Kukulski) | str. 95 13. Tax audits (Michał Wilk) | str. 96 Dr Małgorzata Sęk Tax on Goods and Services (VAT) | str. 98 1. Introduction | str. 98 2. Competent tax authorities | str. 100 3. Taxable transactions | str. 101 4. Supply of goods | str. 102 5. Supply of services | str. 104 6. Intra-Community supply and intra-Community acquisition of goods | str. 105 7. Export and import of goods | str. 110 8. Supplies for consideration and taxation of supplies made free of charge | str. 111 9. Excluded transactions | str. 113 10. Selected exempted transactions | str. 115 11. Abuse of law | str. 118 12. Taxable persons | str. 118 13. Persons liable for payment of tax to tax authorities | str. 120 14. Tax representative | str. 124 15. Withholding agent | str. 125 16. Small enterprise exemption | str. 126 17. Place of taxable transactions | str. 129 17.1. Place of supply of goods | str. 129 17.2. Place of intra-Community acquisition | str. 130 17.3. Place of importation | str. 131 17.4. Place of distance selling | str. 131 17.5. Place of supply of services | str. 132 18. Time of taxation | str. 136 19. Taxable amount | str. 139 20. Bad debt relief | str. 144 21. Rates | str. 145 22. Deduction of input VAT | str. 147 23. Payment and refund of VAT. Tax returns and recapitulative statements | str. 157 24. Cross-border refund of VAT | str. 159 25. Joint and several liability for payment of VAT | str. 161 25.1. Acquirers of "sensitive goods" | str. 161 25.2. Proxies filing VAT registration forms of "active" taxpayers | str. 162 26. Registration | str. 163 27. Documentation | str. 165 28. VAT registry | str. 167 Dr Małgorzata Sęk Excise Duties | str. 169 1. General remarks | str. 169 2. Taxable goods and activities | str. 169 3. Taxable persons | str. 173 4. Tax moment | str. 174 5. Taxable base and rates | str. 175 6. Taxable period and payment of tax | str. 176 Prof. Dr Adam Mariański Income Taxes | str. 177 1. Personal income tax | str. 177 1.1. Subjective scope of taxation | str. 177 1.2. Objective scope of taxation | str. 181 1.3. Income from sources of revenue | str. 185 1.4. Tax deductible expenses | str. 186 1.5. Tax base | str. 188 1.6. Tax rates | str. 190 1.7. Collection and administration of taxes | str. 192 1.8. Flat-rate income tax and lump-sum amount on registered revenue | str. 193 1.9. Fixed-amount tax ("tax card") | str. 194 1.10. Social security | str. 194 2. Corporate income tax | str. 195 2.1. Objective scope of the application of the CITA | str. 195 2.2. Subjective scope of application of the CITA | str. 198 2.3. The concept of revenue under the provisions of the CITA | str. 199 2.3.1. Taxable revenues | str. 199 2.3.2. The moment of commencement of tax obligation | str. 201 2.3.3. Determination of the revenue upon the arm's length principle | str. 201 2.4. Determination of income | str. 205 2.5. Income tax exemptions implementing EU Directives | str. 209 2.6. Controlled foreign companies rules | str. 211 2.7. Determination of the tax base and application of the appropriate tax rate | str. 213 Dr hab. Ziemowit Kukulski, Dr Małgorzata Sęk, Dr Michał Wilk Other Taxes | str. 216 1. Immovable property tax (Małgorzata Sęk) | str. 216 2. Tax on civil law transactions (capital duty) (Michał Wilk) | str. 220 2.1. General remarks | str. 220 2.2. The scope of taxation | str. 221 2.3. Tax base, tax rates, tax obligation and collection of the tax | str. 223 2.4. Exemptions | str. 224 3. Other business-related taxes (Ziemowit Kukulski, Małgorzata Sęk) | str. 225 3.1. General remarks | str. 225 3.2. Inheritance and gift tax | str. 225 3.3. Agricultural tax | str. 226 3.4. Forestry tax | str. 228 Dr hab. Ziemowit Kukulski Double Tax Treaties in the Polish Treaty Practice | str. 230 1. Types of DTAs in the Polish treaty practice | str. 230 2. Periods in the Polish tax treaty practice | str. 234 3. Impact of the OECD Model Convention and the UN Model Convention on the Polish tax treaty practice | str. 238 4. The concept of PE in DTAs concluded by Poland | str. 240 5. Taxation of income from business activity in juridical and economic sense in DTAs concluded by Poland | str. 242 6. Taxation of passive investment income in DTAs concluded by Poland | str. 247 7. Taxation of capital gains and income from immovable property in DTAs concluded by Poland | str. 250 8. Taxation of income from employment and other income of individuals in DTAs concluded by Poland | str. 252 9. Polish tax treaty practice with respect to taxation of directors' fees | str. 253 10. Other income and capital in DTAs concluded by Poland | str. 254 11. Methods for the elimination of double taxation in the Polish tax treaty practice | str. 255 12. Bilateral cooperation in tax matters - prevention against tax evasion - provisions of Articles 25, 26, 27 of the OECD and UN Models in DTAs concluded by Poland | str. 256 13. Special provisions not based on the OECD or the UN Model Conventions | str. 258