Marriages Pay Lower Tax

Calculating Marriage

Calculating Marriage

Thanks to a joint tax compliance mechanism, married couples will pay lower taxes. The larger the disproportion in the incomes of spouses, the more beneficial this becomes. While filing your PIT (Personal Income Tax), couples need only fill in one form. In joint tax compliance, income is calculated, but combined only after deductions. Then, we divide the joint income into two and calculate tax on the basis of the tax scale. The actual tax liability is the result multiplied by two. Any tax relief can be deducted from this result. Married couples whose income is significantly unequal, and where one of the spouses’ income is above the tax threshold will benefit most in this situation. This is best illustrated in the example where one spouse does not earn any income at all, and the other makes the minimum amount of PLN 171,056. Then, the total joint annual income will be taxed at a rate of 18%, and the benefit will be PLN 12,529.44.
forbes.pl

Radwańska Taxed

Agnieszka Radwańska

Agnieszka Radwańska

Polish tennis player Agnieszka Radwańska earned $2 million in prize money when she won the WTA Masters tournament in Singapore, considered to be the unofficial world championships. However, not everyone was happy with her success. Pre-parliamentary elections, some left-wing commentators in Poland wished to see her pay higher taxes for the amount she earned. Radwańska’s prize money soon created a storm on the internet. And it all began with a post written on Twitter by Robert Gwiazdowski from the Adam Smith Centre. He ironically suggested that if Radwańska earns so much of money, then analogically she should pay 70% tax on this amount. Gwiazdowski was referencing the opinions of the left wing party ‘Razem’ (Eng. Together). His comments, however, soon met a swift response from Piotr Szumlewicz, a left wing publicist and expert for the All-Poland Alliance of Trade Unions (OPZZ). Later, both commentators attacked each other via Twitter. Szmulewicz further explained that the 70% tax does not relate to total revenue but would apply only if income exceeded PLN 500,000. Gwiazdkowski replied, however, that Radwańska had already long since surpassed this threshold.
money.pl

Tax War

No Escape

No Escape

The huge amounts of revenue that seeped out of Poland in the years 2003-2012 was rather due to the efforts of criminals and not legitimate tax optimisation, according to Deputy Minister of Finance Jarosław Neneman. He has assured the public that the treasury already has the tools to fight this problem. Deputy Minister Neneman explained that new measures focus more on the illegal inflow and outflow of money (i.e. tax fraud) that various criminal groups utilise and to a lesser extent legitimate tax optimization.
podatki.gazetaprawna.pl

Taxing E-cigarettes

Taxing Tobacco?

Taxing Tobacco?

Advisors at the Polish Chamber of Commerce are proposing the taxation of e-cigarettes and new tobacco products. Manufacturers are outraged, as reported by Puls Biznesu. It is claimed that ‘regular’ cigarette smokers are economic patriots. Every year they produce revenue for the budget amounting to more than PLN 23 billion from excise and VAT levied on cigarettes. However, this is falling mainly due to the flourishing grey market, but also because smokers are moving to nicotine replacements, in particular e-cigarettes, which are not subject to excise. A report was prepared by CASE advisors on behalf of the National Chamber of Commerce, in which the authors clearly propose the imposition of excise on e-cigarettes and refills. The manufacturers of these products are outraged. They use the example of Italy, which introduced similar regulations. After the introduction of excise on e-cigarettes, prices jumped significantly, the number of e-cigarette smokers decreased resulting in a significant decline in employment in the industry.
podatki.gazetaprawna.pl

Tax-Free Children’s Day

Happy Children's Day

Happy Children’s Day

For the first time in years, organisers of picnics and Children’s Day parties are not afraid of tax settlements. The Minister of Finance does not want to tax participants for these activities. The Minister’s idea is to divide total expenses of a party by the amount of invited guests (parents and children) and then to assign this value to each participant. The Constitutional Tribunal claimed that income can be taxed only when it bring profits to an individual. However, it is not considered income when someone is invited and exercises this invitation. Recently, the Tax Chamber in Katowice found that there is no need to share expenses for the organisation of family picnics.
rp.pl

Poland Has Lowest Taxes?

Lowering Tax

Lowering Tax

“A change in tax thresholds will happen sooner or later, but it must be aligned to the needs of the economy,” according to the Minster of Finance Mateusz Szczurek. The head of the Ministry of Finance avoided any specific declarations of when a cut might be possible, but pointed out that “more will be known when the draft budget for 2016 is accepted”. Szczurek argued that in comparison with other EU countries, Poland is a state with some of the lowest taxes. “Taxes to GDP in Poland are slightly below 31%, which is 8% less than the average in the EU. We actually collect a relatively small amount of money in taxes in relation to the size of the economy,” he stressed.
onet.pl

New Fiscal Punitive Measure

Calculating Tax

Calculating Tax

Poles have time up until the end of April to submit their annual tax returns. Companies additionally need to attach their financial statements and a failure to do so is a fiscal misdemeanour as of this year under amended article 80b of the Polish Fiscal Penal Code. Thus, tax authorities have a new tool to discipline businesses which neglect to file their financial statements or auditor’s reports. The classification of this omission as a fiscal misdemeanour means that the penalty may range from PLN 175 to PLN 35,000, whereas a fine for an administrative petty offence does not exceed a few hundred zlotys. The exact amount of the fine depends mainly on the financial standing of the entity in breach of the statutory obligation. In companies the fines are typically imposed on management board members or other persons responsible for tax and accounting settlements. Both the Corporate Income Tax Act and the Personal Income Tax Act stipulate that tax payers must file their financial statements with the tax office, yet noncompliance was so widespread as to prompt the Ministry of Finance to introduce sanctions. The requirement to keep full books of account, prepare financial statements and have them audited vary depending on the legal form of the entity concerned and, in the case of natural persons and some partnerships, on their net revenues from sales in the previous financial year. The tax payers obliged to draft financial statements should remember that the obligation to submit a financial statement to the relevant tax office along with the tax return is separate from and independent of the obligation to file the same statement with the National Court Register.
Puls Biznesu

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