From July 1, one of the most important amendments to the tax part of the Polish order introduced in January will enter into force – the main income tax rate will be reduced from 17 to 12 percent. On the same day, consultations will begin at the Office of the Ombudsman for Small and Medium Enterprises, which will end with “bad debt relief”.
- From July 2022, the EBIT will be reduced from 17 to 12 percent.
- But the SME spokesperson warns of two solutions, which are dangerous for entrepreneurs, left in the regulations: “bad debt relief” and a minimum CIT.
- The Ministry of Finance wants to develop new solutions for entrepreneurs to be implemented from 2023.
SME spokesman Adam Abramovich pointed to the problem, praising the changes in the Polish Lada that are about to go into effect, but also alerts to the two solutions that are dangerous for entrepreneurs, which are left in the systems.
“This is, above all, bad debt relief, which can be accounted for in the annual declaration for tax reasons, but not on the basis of the health insurance contribution. The result is that the entrepreneur who issued the bill and did not get the money, will have to pay another 9 percent of it. “. – He indicated in an interview recently published on rp.pl Adam Abramovich.
Also read: “Low taxes” as of July 1. New regulations, thresholds and rates
According to the spokesperson for Entrepreneurs, the problem of regulations operating in this way will be huge, because the tax system sees them and allows you not to pay taxes if the amount owed is not settled. No contributions system.
We asked Artur Suboy, Deputy Finance Minister, who has been working to improve tax reform in place since January, about these issues.
– We can see it. Except this is a methodological problem. In general – as a rule – the tax base is not the same as the contribution rule and it is not easy to make it consistent. We will try to perform such operations. From July 1, we are sitting in the ombudsman’s office in the ZUS formation, the Ministry of Health and the Ministry of Finance to work on this task with accountants and businessmen. But this is not a job for a month or two, as the deputy minister explains.
Hear the full conversation with Artur Soboń about the new changes in the Polish Lada and about working on the new taxes. The rest of the text is below the player.
- Interview with Deputy Finance Minister Artur Suboy
From July 2022, the EBIT will be reduced from 17 to 12 percent. Change is beneficial. However, this will lead to a situation where the choice of tax form made at the beginning of 2022 may be completely unprofitable. For this reason, the government has proposed to introduce the possibility of changing the form of taxation again.
I cannot estimate how many entrepreneurs would want to use this option. It’s definitely an option that might be attractive to some entrepreneurs for a lump sum or on the line – Soboń comments.
At the same time, he warns that the positive impact of the comprehensive income tax cut may not be immediately visible to all taxpayers.
– There will be benefits on your annual tax return, although the advance payments may vary from month to month. I recommend looking at the benefits each year, because someone may feel these benefits only in down payments, for example, after the tax threshold has been exceeded – he explains.
CIT for the freezer
The next step in untangling critical solutions from the Polish deal is to suspend the minimum CIT for one year. The Ministry of Finance wants to develop new solutions for entrepreneurs to be implemented from 2023.
– These were very unexpected solutions given the current economic conditions. This is not the time to test entirely new solutions. Before we propose new projects, we will consult them extensively with industries, says Artur Suboy, Deputy Minister of Finance.
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