Changes and news in taxes for 2021

Below we present the most important changes in tax matters that will take place in the current 2021:

1. Estonian CIT – addressed to small and medium-sized enterprises with a turnover below PLN 100,000, which:

• they operate in the form of a limited liability company or joint stock company, and their shareholders are only natural persons,
• they do not have shares in the capital of another company, all rights and obligations in a partnership,
• passive income does not constitute 50% or more of the income,
• employ at least 3 employees (start-ups are the exception).
• will incur specific investment expenditure on fixed assets from groups 3-8.

Taxation will be maintained on two levels:

CIT lump sum at the time of transfers to shareholders (15% or 25%) and

PIT from natural persons on dividends. However, it will be possible to deduct part of the tax paid at the corporate level (CIT) from the partner’s dividend, so as to ensure total taxation at the level of:

• 25% for a small taxpayer (with the possibility of reducing by 5% for high investment expenditures)
• 30% for others (with a possible reduction by 5%).

2. Changes in VAT on purchases on Chinese portals

As of July 1, 2021, purchases made on AliExpress, Wish, Amazon and eBay will be subject to VAT. Consumers will have to pay VAT on each item in the postal item being imported. If you want to apply a reduced rate for a specific imported goods, you will need to submit a customs declaration.

3. Discount for robotization

The update of the National Development Program introduces a new form of support for entrepreneurs, in the form of a tax relief related to expenditure on automation and robotization of business activities. According to the announcements of the Ministry of Finance, the relief for robotization would apply from the second quarter of 2021.

The work relief is to be a tax option available to all income tax payers. At the same time, the right to take advantage of the tax relief should not depend on the industry in which the entrepreneur operates or the size of his business. The new tax relief is intended to allow eligible costs to be deducted from the tax base. The discount for works allows for a 50% deduction of the above-mentioned eligible costs.

4. Faster VAT refund for non-cash taxpayers

At the beginning of 2021, a new solution of the Ministry of Finance is to enter into force, introducing the status of a cashless taxpayer. Under it, entrepreneurs settling only in a non-cash manner would be able to refund VAT faster.

According to the VAT Act, the expected tax refund period is 60 days. If this deadline is to be extended, the taxpayer will be informed of this by means of a decision. As a rule, however, the VAT will be refunded no later than 180 days after submitting the declaration. In addition to the standard 60 days, there are also accelerated (25 days) and extended (180 days).