The highest tax increase ever for entrepreneurs since the new year

The highest tax increase ever for entrepreneurs since the new year. Despite a veto appeal by businessmen, President Andrzej Duda signed a law introducing tax changes as part of the Polish deal. The new regulations, which will largely take effect on January 1, 2022, are the largest tax increase ever for entrepreneurs.

From January 2021, business conditions for companies will deteriorate. First of all, the costs of doing business will increase. New obligations related to tax settlement and health insurance premium payments will be introduced. Entrepreneurs face many problems related to the correct fulfillment of tax obligations. In addition, the increase in taxes will result in the need to incur very high costs to prepare for the new settlement rules.

The following months will be a very difficult period for the people responsible in the companies for the correct settlement of ZUS and the United States. Many judgments raise serious doubts about interpretation, are too complex and imprecise. The short 6-week vacancy legislation will not allow for adequate preparation of systems, procedures, and personnel. The Polish system is another example of a law that was passed at an explicit pace, without respect and consideration for the reservations and demands of entrepreneurs. There are many indications that explaining the Polish command will take several months. It is possible that another amendment to the tax laws will soon be sent to the Sejm, to correct the flawed provisions of the Polish system.

Comment from Przemysław Pruszyński, Tax Consultant and Expert Confederation of Liuatan

Read also: Suspension of operations does not relieve you of your obligations to the tax authorities

Suspension of activity does not exempt from obligations to the tax office. Entrepreneurs who suspend their business often forget about its existence. However, failure to carry out business related activities does not relieve them of their legal obligations. In other words, a suspended entrepreneur must always be ready to provide explanations or send documents to tax offices. This is the result of the latest ruling of the Supreme Administrative Court – the ruling of October 12, 2021, ref file. Chapter Three FSK 151/21.

WithSuspension of activity – taxpayer status

Entrepreneur who was a VAT-registered taxpayer and was not in liquidation or bankruptcy at the same time, filed quarterly VAT settlement For the fourth quarter of 2012, the value of sales was not equal to the value shown on the invoice held by the IRS.