Tuesday, June 21, 2016

Government CIT cuts for small businesses. The changes will come into force from next year? – Dziennik.pl

This is a solution which is to give the opportunity for small businesses thrive, capital building their businesses, strengthen the position of their companies, and finally – the fulfillment of this principle, which we adopted in our economic program, speaking about the fact that small companies have become a medium-sized, medium – large, and the big ones are – in the intention of our project business – able and have a chance to compete with the biggest in the world markets – marked Prime Minister Awl.

She informed that the draft law will be soon addressed the Sejm. I hope that Parliament will adopt this project quickly so that he could start to take effect from 1 January 2017. – said the Prime Minister. As emphasized by the head of the government, this project is the realization of the obligations of the electoral Law and Justice, and government liabilities.

The current conference Deputy Finance Minister Wieslaw Janczyk stressed that small businesses are subject to a much greater extent than the cost of the normal operation of larger entities. can not benefit from economies of scale, as they are large companies, corporations – he said.

He noted, however, that now a small business successfully apply for an increase in its revenues and effectively compete well exports. We want to give them better conditions for the functioning – he stressed. He informed about the estimated budgetary costs reduce corporate tax for small businesses. calculated the financial impact on the side of the state budget estimate of EUR 270 million – handed.

We decided that we from January 1 next year, this adjustment lowers the rate of corporate income tax from 19 to 15 percent. enter, due to the fact that we have already advanced operation changes the tax system – the Deputy Minister added. In this context mentioned include sealing of the tax system. These losses in the form of tax paid will be offset just by doing those regulation: both the loss of a slight revenue is estimated at approx. 62 million zł per year at the box office of local government units, and the amount of approx. 200 million zł per year loss of income the operation of the revenue side of the state budget – mentioned.

He estimated that the initiative of the government will be great incentive to leave the black economy and business for many entities. We are convinced that many of the entities that make today the trouble of doing business, create new jobs, maintain jobs, often precisely the smallest entities receive incentives to do business and obtain more favorable conditions by reducing this levy tax “- convinced the representative of the Ministry of Finance.

In a press after a cabinet meeting is written that, in accordance with the new regulations, a lower corporate tax rate will cover the so-called. small taxpayers whose value of sales revenue (including amount of tax payable on goods and services) are not exceeded in the previous fiscal year the PLN equivalent of EUR 1.2 million. this solution will also affect taxpayers start-ups. the preferential tax rate will not be subject to tax capital groups.

the Government It estimates that the reduced 15 percent CIT rate will be able to use approx. 90 per cent. of taxpayers CIT, which is nearly 400 thousand. companies. “this regulation will support the taxpayers, for whom difficulties in raising capital for investment and distorted the conditions of competition are the main barrier in the conduct or development of the company. The behavior of the greater part of income for small businesses have a positive impact on their development, strengthen market position in relation to large enterprises and enhance their competitiveness “- is written in the message.

According to the government in the long term, this solution should help to accelerate the pace of development Polish economic and creation of favorable conditions for increasing enterprise Poles, especially young and well-educated. “the project also contains provisions that prevent the use of the preferential tax rate for entrepreneurs who, for example. will share the company just to take advantage of reduced rates CIT” – stipulated.

in addition, the project also provides change the current rules further specifying , in order to eliminate the doubts of interpretation may result in avoidance of some income. including proposed changes to the rules for determining income from due to acquisition of shares (shares) in the company in exchange for a contribution in kind in a form other than the company or its organized part.

The amendment clarifies the cases in which the income of a taxpayer subject to limited tax liability is deemed to be obtained on Polish territory. “These solutions are part of the seal of tax law” – explained.

CIR explains that the introduction of preferential taxation in CIT PIT without taking into account the existing rules for taxation of income (revenue) derived from economic activity by individuals. It was pointed out that they can benefit from tax on general principles, that is, according to the tax scale: 18 percent. and 32 per cent. linearly or 19 percent. or by means of simplified, flat-rate form of taxation, ie. a lump sum on recorded income or tax card. “CIT Taxpayers do not have the choice,” – noted.

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