Hypothetical interest - what is it?

Hypothetical interest is a special tax relief for CIT taxpayers. It applies only to those taxpayers who have allocated the company's profit to reserve or supplementary capital or contributed to the company. This relief is based on the calculation of hypothetical interest that burden tax costs and reduce the tax. Hypothetical interest is a kind of incentive for companies to increase their equity capital. As a consequence, they are to lead to limiting the share of foreign capital in the structure of the company's financing sources.

In order to apply the 0% rate VAT to intra-Community supply of goods, the taxpayer should have documents confirming the export of goods to another EU country. According to EU Council Implementing Regulation 2018/1912 of December 4, 2018. from January 01, 2020 in force presumption of exportation of goods to another EU country on the basis of having appropriate documentation.

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ANTI-CRISIS DISC

Our short assumptions anti-crisis shield:

1. Exemption from the payment of ZUS contributions for 3 months (according to declarations submitted for the period from March to May) based on the application submitted for:

• • companies employing up to 9 employees as at February 29, 2020, if the employer was registered as a contribution payer before February 1, 2020. The exemption applies to contributions for the entrepreneur and the persons working for him,
  • self-employed persons paying contributions only for themselves who conducted business activity before February 1, 2020, with operating income (in the first month for which the application is submitted) up to the amount of PLN 15.681,00.

IMPORTANT !! Only ZUS contributions paid are subject to income and tax deduction. Consequently, exempting entrepreneurs from paying ZUS contributions in part for an employer will not constitute tax deductible costs.

Taxation of real estate rentals

The rental of real estate is taxed at a rate of 23%.

Rental of real estate for housing purposes is exempt from VAT. The VAT exemption does not apply to accommodation services provided by hotels, motels and other hotel facilities (PKWiU 55), where taxation is 8% VAT.

Is the gift a tax deductible cost for the giver (provider)?

The purchase of a gift will constitute a tax cost, provided that the expenditure is incurred in order to generate income or to maintain or secure a source of income. In practice, this means that gifts should bear a company logo, of low value, and their delivery should be massively for advertising purposes (i.e. promoting the brand or products of the company). In addition, when input VAT on the purchase of gifts is not deductible, it is a tax deductible cost. In contrast, elegant and valuable gifts given to selected contractors and gift baskets in which we place branded sweets and alcohols are used to build or maintain good relationships and create a favorable image of the company, are representative and do not charge tax costs.

Split payment method

The split payment method (MPP) in a mandatory form for some transactions enters into force from November 1 2019.

MPP includes invoices for transactions that meet two conditions in total:

• the transaction concerns the acquisition of goods and services listed in Appendix 15 to the VAT Act, which includes transactions for the purchase of goods and services mentioned so far in Annex 14, 13 and 11 of the VAT Act, covered by the reverse charge mechanism and joint and several liability, and inter alia parts and accessories for motor vehicles, coal and carbon products, electrical machinery and equipment, their parts and accessories,
• the total receivable resulting from the invoice (ie the gross value of the entire invoice) exceeds the value of PLN 15.000,00.