Tax management

Protective opinions issued by the Head of the National Tax Administration (KAS) are an important tool for providing legal certainty to taxpayers. Faced with potential tax proceedings, taxpayers can apply for such opinions, which protect them from the risk that their actions will be considered an attempt to circumvent tax law. In our latest blog post, we will take a look at some of the significant decisions of the Head of KAS in recent months regarding issues such as restructurings, reduction of depreciation rates, simplification of ownership structure or cross-border mergers. We will analyze both the content of these decisions and their economic context to show how these opinions affect everyday business practices and tax management.

As of January 2022, under new regulations, a “pay and refund” mechanism has been introduced in the context of withholding tax (WHT). Have these changes affected your business? Do you understand how this new system works and what obligations have been imposed on payers? If not, this post is dedicated just for you. Understanding the new mechanism is key, as currently payers are required to collect WHT at the basic rates (19% or 20%), even if the conditions for exemption or reduced rate are formally met.

In the area of taxation, especially in the context of international relations, the issue of the application of tax preferences often arises. This concerns, among other things, a situation in which there is an excess of PLN 2,000,000 in payments to foreign entities. Then, according to tax law, it is the payer’s duty to withhold withholding tax (WHT) at the standard rate. However, there is an instrument that makes it possible to exclude this obligation – this is a tax preference opinion. Is it effective and when is it worth using such an option? What are the pros and cons of this option?

In the corporate world, withholding tax (WHT), is often an unavoidable cost associated with doing business. However, there are certain mechanisms that can allow to reduce this burden, including tax preferences. When applying these preferences, the key is to file the right applications and meet specific conditions, which is not always easy in practice.