The Ministry of Finance hopes that the new tax “on large companies”, announced recently by the government, will increase the budget to more than 2 billion PLN annually. Jan Sarnovsky, Deputy Head of the Ministry of Finance – explained – both in the form of contributions to the minimum tax and as a result of the increase in CIT revenue, which will become more difficult to avoid. Small and medium-sized Polish businesses will be excluded from it – the Ministry of Finance confirms.
- The Ministry of Finance introduced changes to the tax laws of the Polish package deal
- The new solutions have already been adopted by the government
- Including the “large business” tax
- However, the Ministry of State Assets Jacek Sasin has some serious comments about the new tax
- It indicated this week that it will burden state-owned enterprises
- More such information can be found on the home page of Onet.pl
Since the planned revenue of the National Health Fund will decrease after the health insurance premium is reduced, the Ministry of Finance has proposed the introduction of a new tax, the so-called minimum income tax, otherwise known as the tax on large corporations. The Ministry of Finance estimates that only a small percentage of the companies will cover it. The lion’s share of it is paid by the largest companies operating in Poland.
Tax “on large corporations”. Who will not be covered?
The tax will not apply to companies that do not have branches and whose partners are natural persons only. Such companies make up 90 percent in Poland. All CIT taxpayers. It is a Polish small and medium-sized company, and therefore it will be exempted from the minimum tax. In addition, only companies that record a loss or whose income is less than 1% will pay. Revenues. It will be at most a small percentage of companies – confirmed on Saturday Deputy Finance Minister Jan Sarnovsky.
As he explained, when calculating the income-to-income ratio, investments made by individual entities will be taken into account. Investing companies will not be subject to this tax. Nor will it affect companies that start a business – whether Polish start-ups or foreign investors During the first three years of her work in Poland.
It is the minimum tax, because it includes the CIT paid in Poland. In this way, it will cover only those companies that would otherwise not pay income tax at all, not because of the crisis or investments.
During public consultations, the Federation of Entrepreneurs and Employers and the SME Ombudsman Draw the attention of the Ministry of Finance To the problem of companies that, despite their very high turnover, do not pay taxes in Poland. A remedy for this phenomenon would be the comprehensive income tax, cohabitation or CIT replacement.
Contrary to what was suggested in the remarks addressed to the Ministry, The minimum tax established by the Cabinet will not lead to double taxation or discourage companies from investing in Poland. The amount of the tax rate will be much lower than suggested by the representatives of the entrepreneurs. It will only reach 0.4 percent. Revenues. It’s about 60 percent. Less than what was proposed by the ZPP and five times less than what was proposed by the Commissioner for Human Rights, said Deputy Minister Sarnovsky.
Deputy Head of the Ministry of Finance: The proposal adopted by the government is in line with European Union law
Introducing a tax on large corporations In the formula adopted by the government to bring It already has just over PLN 2 billion in additional tax revenue next year.
– But this does not mean that the minimum amount of tax contributions will be direct and single. Its implementation three years ago in the United States showed that it is unprofitable for large companies to engage in complex tax optimization. They have fewer incentives to artificially reduce their income. The capital pool, for example, stops paying for the purchase of artificially created services from related foreign entities. American companies realize that such measures will not bring them tax profits, and as a result, they are largely resigning from it. As a result, part of the increase in U.S. budget revenue comes directly from larger ICT contributions, which are more honestly accounted for by U.S. companies, Sarnovsky said.
The Deputy Prime Minister assures that the proposal adopted by the government is in accordance with EU law and that there is no danger, Brussels will challenge it.
– The tax formula presented is designed in such a way as not to discriminate between Polish and foreign companies, which are prohibited by EU law. Besides, there is no clearly defined minimum requirement, which can raise doubts in light of the principles of EU law – competition and non-discrimination – says Jan Sarnovsky.
Jacek Sassin Ministry says: Check
This weekend, Jacek Sasin’s Ministry of State Assets indicated that the tax on large corporations will burden state-owned enterprises. MAP also made it clear to the government that this is a completely new solution that was not included in the original draft on July 26.
The size of these burdens, according to the Ministry’s estimates, will reach 379 million PLN. The ministry indicated that If the 2019 corporate results are applied to the new tax proposals, it will be seen that the state treasury companies will pay more of this tax. of multinational companies.
“Total The amount of the additional fee from companies affiliated to the state treasury According to the above assumptions, it is estimated at 379 million PLN. It should be noted that this means an increase in the total CIT burden of companies from the domain of the state treasury included in the analyzed database by 12%, while the average increase in the CIT burden in the entire database is 9%. This means that The proposed solution may proportionately affect state treasury companies more than private entities, including those with foreign capitalMAP wrote in the comments.
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