As part of the broad tax reform within the Polish Deal (“Polski Ład”), it is planned to further extend the scope of digitization in communication between taxpayers and the tax authorities.
According to the draft law, entities conducting business activity will be obliged to keep account books, revenues and expense ledger and register of fixed assets and intangible assets using computer software.
In addition, the indicated entities will be obliged to periodically send this data to tax authorities by means of electronic communication in a structured and predefined manner.
The above obligation will apply to both corporate income tax ("CIT") and personal income tax ("PIT") taxpayers:
- CIT taxpayers will send account books and the above-mentioned records once a year, within the deadline for CIT reporting;
- PIT taxpayers, including those taxed with a flat-rate income tax, in addition to the corresponding obligation to submit tax data once a year, will have to additionally send account books and records monthly or quarterly, depending on the frequency of advance payments for PIT or flat-rate tax purposes, by the 20th day of the following month.
The regulations are to enter into force on 1 January 2023.
As noted in the explanatory memorandum to the draft act, extending the scope of data to be sent to the tax authorities is aimed at:
- reducing the burden of the conducted tax inspections and increasing their effectiveness due to the possibility of remote verification of the correctness of income tax settlements by the tax authorities, and
- allowing for taking actions to provide entrepreneurs with the "Your e-PIT / e-CIT" service, i.e. the preparation of preliminary income tax returns.
In our opinion, the proposed extension of reporting obligations is in line with the trend of obtaining a wide stream of data from taxpayers by the Ministry of Finance for the purposes of conducted analyzes, as was the case with JPK_VAT / JPK_V7.
However, certain doubts are raised by the provisions of the draft act, according to which the Minister of Finance may, by way of a regulation, indicate additional data to be included in the books and records subject to electronic provision to the tax authorities.
It may be assumed that the logical structure for the purposes of sending books and records will be based on the current JPK-KR structure (or respectively JPK_PKPIR and JPK_EWP), although it will probably be adjusted to the extended scope of reported data.
Furthermore, in the context of the draft provisions introducing the VAT groups, additional, simplified records of transactions between entities within the VAT group are also foreseen. Therefore, IT systems in the accounting and tax departments of companies that plan to create a VAT group will have to be adapted to the proposed change.
In the course of further work on the discussed provisions, more detailed information regarding the proposed changes are expected, including in particular the publication of logical structures for the purposes of sending the books and records.
We follow the progress in this area on an ongoing basis, and will inform you about any changes. If you have any questions, please contact us.
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