Expenses for garden equipment are not tax deductible.
Letter of the Director of the National Fiscal Information dated May 4, 2021, ref. no. 0112KDIP2-2.4011.81.2021.3.WS The director of the National Fiscal Information did not agree with the entrepreneur, who believed that the expenses incurred for garden equipment (such as, for example, terrace, pergola, table, chairs, plants), which is located in a house partially used for conducting business activity, may be included in tax costs, if intended for meetings with contractors. The Director of the National Fiscal Information decided that items described above are located outside the building used for conducting business activity, and also concluded that including expenses for items that also serve the taxpayer’s private purposes as part of the costs of running a business would be contrary to the principle of equality before law, as it would put entrepreneurs in a privileged position over people who do not run a business.
Necessity to subject the compensation related to private charging of a company electric car to taxation.
Letter of the Director of the National Fiscal Information dated May 5, 2021, ref. no. 0112KDIL2-2.4011.153.2021.1.DJ The director of the National Fiscal Information did not agree with the employee, who believed that the reimbursement of his expenses for charging a company electric car in the employee’s private home should not be subject to income tax. The director of the National Fiscal Information decided that the applicable regulations do not impose such an obligation on the employer, and this means that the compensation paid by the employer to cover the costs of charging a company car at home is an additional benefit for the employee, which should be included in the employee’s income.
A flat income tax rate may be combined with a registered lump sum.
Letter of the Director of the National Fiscal Information dated May 8, 2021, ref. no. 0112KDIL2-2.4011.118.2021.2.MM The Director of the National Fiscal Information agreed with the taxpayer’s position that it is possible to settle economic activity with a flat tax rate (19%), and income from partnerships with a registered lump sum, despite the taxpayer’s choice of flat tax rate for individual activities. ACT ON CORPORATE INCOME TAX
Limited partnership as an income tax payer in connection with the payment of profit to partners.
Letter of the Director of the National Fiscal Information dated June 8, 2021, ref. no. 0113KDIPT2-3.4011.352.2021.1.NM According to the Director of the National Fiscal Information, the consequence of granting subjectivity to a limited partnership under the Act on Corporate Income Tax is the introduction of two levels of taxation of income generated by this partnership, which means that partners of a limited partnership, i.e. its general partners will be subject to income tax on income actually earned from participation in the profit of the limited partnership. In the opinion of the Director of the National Fiscal Information, the monetary benefits obtained by the general partners in the form of advance payments towards profit constitute their income from participation in such profit, therefore they are subject to PIT on the same terms as income from participation in the profits of legal persons. In the opinion of the Director of the National Fiscal Information, income arises at the moment of its payment and is taxed at the rate of 19%, which means that the limited partnership will be obliged to collect lump-sum income tax on payments made to general partners, including advance payments from current working capital. ACT ON GOODS AND SERVICES TAX (VAT) / TAX ORDINANCE
No statute of limitations for the right to transfer the VAT difference to subsequent accounting periods.
Judgement of Supreme Administrative Court dated February 24, 2021, ref. no. I FSK 126/20 In the opinion of the Supreme Administrative Court, Article 70 § 1 of the Tax Ordinance does not limit the taxpayer’s right to show the surplus of input tax over the tax on goods and services (VAT) in individual accounting periods, depriving him of this surplus, in a situation where the taxpayer systematically shows this surplus for individual accounting periods. ACT ON GOODS AND SERVICES TAX (VAT)
Method for re-invoicing real estate tax.
Letter of the Director of the National Fiscal Information dated June 9, 2021, ref. no. 0113KDIPT1-3.4012.225.2021.2.ALN In the opinion of the Director of the National Fiscal Information, the cost of real estate tax, when it is “shifted” to the lessee, as a calculation element of the lease price, increases the amount due from the lessee for the lease of the property and should be taxed at the tax rate applicable to the lease service. In the opinion of the Director of the National Fiscal Information, the above is acceptable if the cost of real estate tax is included in the benefit due under the lease agreement and which, together with the rent, constitutes the payment for this benefit, which is the taxable amount within the meaning of Article 29a section 1 of the VAT Act. In the described situation, the Director of the National Fiscal Information decided that the lessor should issue an invoice in which the tax base consists of the lease service, which will also include the cost of real estate tax. In the opinion of the Director of the National Fiscal Information, the costs of real estate tax cannot constitute a separate benefit, but may be an element of the basic activity, which is the lease of real estate, therefore, as a rule, they should not be shown on the invoice as a separate item. In the opinion of the Director of the National Fiscal Information, the Lessor may present the amount of real estate tax in the information part of the invoice or on a separate attachment thereto.
Wojciech Langowski Partner, Radca prawny | Partner, Legal Advisor T: +48 22 447 43 00 M: +48 601 992 494 E: langowski@millercanfield.com
Disclaimer: This publication has been prepared for clients and professional associates of Miller Canfield, and is based on the facts and guidance available at the time of its release which may be subject to change. The purpose of the publication is to draw attention to the legal events indicated in it and should not be the sole basis for any decision regarding a particular course of action; nor should it be relied on as legal advice or regarded as a substitute for detailed advice in individual cases. The services of a competent professional adviser should be obtained in each instance so that the applicability of the relevant legislation or other legal development to the particular facts can be verified.