In the event a taxpayer does not have a relevant tax identification number, he/she should be able to transfer their Polish tax liabilities to the given tax office’s micro account (a list of such micro accounts will be published still in December of this year). In such a situation, it will be especially important to include such details in the money transfer description which will enable to tax office to properly allocate the funds ( for instance one’s passport number or ID number).
Agata Deptuch, Manager, Tax & Legal
More detailed information regarding individual tax account numbers (so called micro accounts) has recently been released. Tax liabilities concerning personal income tax (PIT), corporate income tax (CIT) and VAT will need to be transferred to such micro accounts starting as of 1 January 2020. The change in the way tax liabilities are settled will concern both taxpayers and employers acting in the capacity of tax remitters. All such taxpayers and tax remitters may already obtain their micro account numbers using a so called generator or receiving it from any tax office. The current bank account numbers dedicated to PIT, CIT or VAT payments in a given tax office will remain active only until 31st December 2019.
The scope of changes
Currently, the Polish tax liabilities are payable to the Polish tax authorities’ bank accounts dedicated to different types of taxes, such as PIT, CIT, VAT etc.
However, the bank accounts relevant for PIT, CIT and VAT tax payments will be deactivated by the end of the 2019 and transfer of such tax liabilities to these bank accounts will no longer be possible after this date. Other tax liabilities, however, such as civil law activities tax or inheritance and donation tax, will still be settled according to the current rules.
As of 1st January 2020 each PIT, CIT and VAT taxpayer and tax remitter should transfer all of their Polish tax liabilities concerning the above taxes to their individual tax account (so called micro account) regardless of whether such payments will concern one’s liabilities for 2020 or for prior years.
Moreover, the micro account number is to remain the same even if one changes their residency address, firm’s seat, surname or tax office which is relevant for a given taxpayer or tax remitter.
What does it mean for me?
Each micro account will include one’s relevant tax identification number. For the majority of individual taxpayers this number will be the PESEL number. For all corporate taxpayers, entrepreneurs, tax or social security remitters as well as certain group of individuals (those conducting business activity or those not being subject to a PESEL register) the NIP number will be appropriate.
The tax authorities do not intend to advise the taxpayers or tax remitters on their individual micro account numbers binding as of 2020. Instead, all taxpayers and tax remitters will need to obtain the relevant number on their own, either by visiting any tax office in person or generating it online on an official Ministry of Finance webpage after providing the tax identification number. The sole liability for generating the correct micro account number falls directly on the taxpayer or tax remitter.
Consequently, it is critical that each individual taxpayer or tax remitter ensures that they have either the PESEL or NIP number prior to 1st January 2020 or as soon as they become liable to Polish taxation (for instance, as soon as an assignee arrives in Poland and becomes subject to personal income tax). As a next step, each person should undertake relevant action to obtain their individual micro account.
Based on currently binding regulations, as a rule, only the taxpayer may successfully settle his/her tax liabilities. This means that tax liabilities exceeding PLN 1,000 should be transferred to the tax office directly by the taxpayer him/herself (for instance by an assignee working in Poland under his/her foreign employment contract).
So far, some tax offices still accept and allocate payments of one’s tax liabilities regardless of their amounts, which were made in the name of the taxpayer by their employer or other party (under a relevant arrangement in place between both parties).
The new rules regarding, among others, making PIT payments to micro accounts are independent from the above regulations and do not modify them in any extent. We do not expect a change of the tax authorities’ approach in reconciling of tax payments made on behalf of an individual by a third party. Nevertheless, changes in the bank accounts which will become relevant for making PIT payments as of 2020 may prompt the taxpayers to also amend the way in which their tax liabilities are settled.
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