"The amendment to some laws on business simplification in tax and economic law (the so-called SME package) is almost 50 simplifications, giving PLN 4 billion in the business sector in ten years, which is another – after a package of 100 changes to companies and the Business Constitution – our provisions to make life easier for Polish entrepreneurs – the package is aimed primarily at the small and medium-sized enterprise sector, with most proposed solutions coming into force in 2019 and the extension of the "small taxpayers" category from 2020 onwards. – We read in the communiqué of the Ministry of Enterprise and Technology.
– The adoption of the SME package is a great news for Polish entrepreneurs. The package introduces changes that give them real savings and further simplification. It should be remembered that in this term we already have hundreds of business-friendly solutions. It is a package of 100 changes for companies and the Institute for Entrepreneurship. They are now joined by a package of small and medium-sized businesses. We have worked out a list of relief, savings, and privileges for the entrepreneurs planned to work with them. But transferring the package does not mean that we are resting on laurels. The government should soon adopt our bill that will deal with payment problems, and this month we will be submitting a draft new Public Procurement Act, which will be much more friendly to small and medium-sized businesses – said Minister Jadwiga Emilewicz quoted in the communique.
Deputy Minister Mariusz Haładyj stressed that a package of small and medium-sized enterprises is another part of the changes prepared in cooperation with the entrepreneurs themselves, especially small and medium-sized enterprises.
– In a dialogue with them and in co-operation with, among other things, the Ministry of Finance, we have created regulations that will improve the company's liquidity and reduce the bureaucratic burden in tax law. For example, by raising the small taxpayer's limit, a one-off deduction of the tax loss of up to PLN 5 million, or allowing inclu- sion of income of a spouse to income tax, which is particularly important for small family businesses. We also reduce the operating costs of employers – we are eliminating, among other things, the obligation to regularly train the health and safety of nearly 6 million employees. We climb – more than twice – the number of employees that the employer does not need to employ health and safety experts. The law affects company law and company accounting rules (for example, shortening the accounting period). Every change corresponds to the specific requirements of entrepreneurs for their day-to-day functioning – Haładyj said, cited in the communiqué.
One of the solutions set out in the law is to take into account the value of the husband's work as tax-deductible costs. Following a change in the rules, the business owner will have the option to take into account the remuneration paid to his spouse for the income earned. This change is expected to benefit especially micro-enterprises and small family businesses. A taxpayer who is employed by a spouse (on the basis of a contract of employment, mandate or special job contract) will be treated by the tax office in the same way as a taxpayer employing a person outside the immediate family. This solution will benefit the tens of thousands of businesses that are also provided.
The law also provides for the possibility of a one-off settlement of the tax loss of up to PLN 5 million (only a surplus of this amount would be offset against existing policies, with a maximum of 50% in one year).
"Assuming income of PLN 7,6 million will be settled at a maximum of PLN 5 million and a 19% tax rate, in the year the loss is settled, the taxpayer can pay up to 900,000 tax less than before the change. Such a change will positively affect the financial liquidity of the company. In addition, with a one-off settlement of the loss, the formalities are limited (we are compensating for the loss once and we will not split into several years, so we have only to submit the necessary documents once) " – we read further.
The SME package removes the obligation of regular training on health and safety for almost 6 million industrial workers who are least concerned with accidents. This change will include employees of administrative and office work employed by an employer qualified for a group of activities for which no higher risk category has been identified than under the Social Insurance Act. At present, the employer pays the costs of purchasing the service and training. The provisions of the EU Council Directive on regular OSH training require that regular training of staff be provided only if necessary and justified. The new law will remove unnecessary obligations that are currently imposed on employers and, as a result, will also reduce their operating costs.
The law also increases the threshold of between 20 and 50 employees to which the employer – if qualified to a higher risk category than the third in the meaning of the Social Insurance Institution – does not have to employ a health and safety expert, can only perform tasks of health and safety services.
"This amendment provides for an increase in the sales threshold which entitles them to obtain the status of"a small taxpayer"- from EUR 1,2 million to EUR 2 million Status"a small taxpayer"Provides the right to amortization amortization, less frequent liability to pay advances on personal income tax and CIT and lower tax (in CIT)" – we read further.
"Small taxpayer" has the right to one-time write-offs, ie a single write-down of the full value of fixed assets to income earnings in the month of registration (up to a maximum of EUR 50,000 per year); there is no need to separate purchase costs for the entire depreciation period.
One-off depreciation compared to a linear settlement means that in the case of high tax deductible costs you will have a lower tax deduction in the deduction. For example, revenue of PLN 7,6 million (approximately EUR 1,8 million) and the maximum value of tax deductible costs of PLN 200,000 are foreseen. PLN (50 thousand) With a one-time depreciation taxpayer in the first year, it gets almost 25 thousand. PLN is stated in the notification.
"Another privilege of a" small taxpayer "is the quarterly way of paying advance payments – the entrepreneur can pay tax advances every quarter, which means less formalities regarding declarations and transfers – 4 transfers instead of 12" – We read too.
Other selected facilities include CIT tax exemptions from some ASI earnings from the sale of shares / shares (sale of shares / shares if at least 10% of the company's shares were held and at least 2 years). Exemption (paid by the insurer) of the amount of compensation intended to recover the damaged property. This exemption will apply to all long-term assets, except for a passenger car. Unify tax return forms for local taxes (real estate or forest tax) and allow them to be submitted electronically. At present, forms are very diverse – they are developed by local authorities. This makes it difficult for entrepreneurs who own real estate in more than one municipality to deal with taxes through local governments. Shortening the period of mandatory retention of the approved financial statements for 5 years. At present, this duty is indefinite.
Deregulation of certain information obligations for entrepreneurs, including regarding the period of suspension of operations or keeping a book of revenues and costs for the purpose of settlement of income tax.
"Changes in the operation of O. It will be possible, for example, to take all the decisions of the partners at a distance, in circulation, and rules will be put in place to give shareholders back dividends against the dividend if the company reaches a loss or does not achieve the expected profit" – We read too.
Unambiguous definition of the legal consequences of acts that the unauthorized person represents. This will increase the security of business transactions. Shortening the time limit for the creditor who did not receive the payment to be exempt from debt in the case of VAT of 150 to 90 days. Possibility of making a telephone or e-mail call to a social insurance institution or an insured's employer for temporary incapacity to work.