Tax consequences of the revocation of the state of epidemic emergency
The epidemic emergency caused by SARS-CoV-2 infections was called off on 1 July 2023. Its termination has an impact on many spheres, including tax issues. In view of the above, we have prepared a summary of the most important tax changes for you that are related to the lifting of the state of epidemic emergency.
1. Mandatory Disclosure Rules (MDR)
Pursuant to specific provisions, the time-limits for reporting the so-called national tax schemes were suspended during the epidemic and epidemic emergency. The revocation of the epidemic emergency results in the ‘reinstatement’ of the MDR reporting obligation as of 1 August 2023.
‘Reinstatement’ means that all national schemes that have not been reported due to their suspension during the COVID-19 pandemic are subject to reporting obligations.
2. Certificates of tax residence
The provisions applicable during the state of epidemic and epidemic emergency provided for the extension of the validity of tax residence certificates pertaining to the years 2019 and 2020, subject to obtaining a taxpayer’s statement as to the validity of the data contained therein.
As of 1 September 2023, taxpayers will no longer be able to take such certificates of tax residence into account.
Having a valid tax residence certificate is very important in terms of withholding tax and is one of the conditions for applying the exemption or preferential tax rate. Therefore, we recommend that you prepare for this change early enough and obtain new certificates.
3. White List of VAT taxpayers
During the state of epidemic and epidemic emergency, the time-limit for submitting payments to an account outside the so-called White list of VAT taxpayers was extended to 14 days. As of 1 July 2023, the 7-day time-limit was reinstated.
At the same time, we would like to remind you that submitting such a declaration makes it possible to avoid tax sanctions resulting from making payments to an account outside the White list (including joint and several liability with the counterparty for VAT arrears related to such a transaction).
4. Shortening the time for the issuance of individual tax rulings
During the period of the state of epidemic and epidemic emergency, the time-limit for the issuance of individual tax rulings by the Director of the Tax Information Center [Dyrektor Krajowej Informacji Skarbowej, KIS] was extended to 6 months. As of July 1, the wait time for the ruling has returned to the standard 3-month period.
If you have questions about any issue related to the consequences of lifting the state of epidemic, we encourage you to contact the Tax Department of TIAS at: email@example.com
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