Changes and news in the field of legislation and taxes (introduced and planned).

A new form of a company for startups. On May 17th, the project of a simple joint-stock company was submitted for consultation. According to the Ministry of Enterprise and Technology, it is supposed to be a modern form of a company that facilitates the development of startups. It is supposed to combine the company’s features with private limited company (relatively simple and low-cost establishment, operation and liquidation of the company) with the advantages of a joint-stock company.

Easier settlements for the smallest businesses. People earning less than 1,050 PLN per month, even if they meet the definition of an entrepreneur, i.e. operate in an organized, continuous way and for profit, do not need to register a business or pay ZUS (Polish: ‘Zakład Ubezpieczeń Społecznych- Social Insurance Institution). The Ministry of Finance also confirmed that unregistered companies can provide services to other companies. A company with which an undeclared cooperates does not have to fulfill the obligations of the payer. A person conducting a non-registrar activity does not have to pay tax advances. The revenue falls into the so-called other sources, shows with the others in the annual statement.

Tax and economic facilitation for entrepreneurs. On May 29th, the bill on simplifications in tax and economic law was unblocked- the so called third Morawiecki package. Ministry of Enterprise and Technology announced that the project was adopted by the governmental committee for digitization. The project includes for ex. improving the tax position of creditors and tax sanctions for unreliable debtors, extending the period for the choice of PIT taxation, simplifying special customs procedures, liquidation of many information obligations, introducing liability for damage to a subsidiary and shareholders, clarifying the term “dividend day” in the company z o. o and reducing the period of mandatory storage of financial statements to five years (currently unlimited).

Liquidation of companies in case of serious violations. Closing the company as the darkest scenario, which is provided by a new law on the liability of companies and other collective entities. On May 28th, the project went to consultations. The companies would face severe penalties for acute and deliberate abuse, resulting in, for example, a fatal accident or environmental contamination. The new law introduces tools that will make it possible to realign the fight against company crime.

Brussels says enough to VAT carousels. VAT fraud is estimated at 50 billion EUR per year in the EU. On 25th of May, the European Commission presented proposals to help the European Union immunize the VAT system against fraud. The changes are to prevent the transaction in the country of origin from being taxed. Under the current VAT system, trade in goods between enterprises is divided into two separate transactions: tax-free sales in the Member State of origin and taxable acquisitions in the Member State of destination. The EC proposal means the end of the artificial division of one transaction. Cross-border trade in goods will be defined as one taxable supply.

Green light for immigrants. The first stage of changes aimed at facilitating foreigners to stay and work in Poland is to amend the Act on Labor Market Institutions. Another facilitation is to submit applications for work permit electronically. At the same time, the government is consulting the draft regulation, which exempts many professions related to the construction industry, logistics or IT from the so-called labor market test. The solutions are to come into effect from the new year. All this to address the problems related to bureaucracy and the gradual shortage of qualified workers from the eastern border, such as Ukraine. Today, the average time to complete a work permit is 6-7 months. After eliminating, in some cases, the labor market test, this period will be shortened by three weeks. In turn, the Ministry of the Interior and Administration published last week a draft amendment to the Act on foreigners, implementing the EU directive concerning the stay of non-EU citizens for school, academic, and academic purposes or for volunteering.

Market situation:

Ranking of loans for companies for May –

The reference rate – unchanged, still 1.5%

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