Changes in the competence of tax offices from January 2021

As of January 2021, there is a new service model for taxpayers in tax offices, which is part of the wide-ranging "Customer at the heart of National Revenue Administration KAS" programme. The changes introduced are aimed at clarifying the competence of tax offices.

The service for the largest taxpayers with the most complex business operations now takes place in a single office of national reach, and for large entities in specialised "tailor-made" WUS tax offices. Revenue verification has also changed and there is centralisation introduced for the payers of withholding tax.

One office for the largest entities

As of 1 January 2021, the largest taxpayers, i.e., the entities whose annual revenue exceeds EUR 50 million net, are served by one specialised tax office of national reach - the 1st Mazovian Tax Office in Warsaw (I MUS).

The 1st Mazovian Tax Office (I MUS) in Warsaw will settle:

• tax capital groups and their subsidiaries,
• National Bank of Poland, state banks and domestic banks that have the form of joint stock companies,
• domestic insurance companies and domestic reinsurance companies,
• public companies which have their registered office within the territory of the Republic of Poland,
• legal persons or organisational units without legal personality, whose net revenue/turnover exceeded EUR 50 million (excluding civil law partnerships).

19 specialised tax offices (WUS)

Another change involves the identification of 19 specialised tax offices to serve large entities including:

• legal persons or organisational units without legal personality, whose net revenue/turnover is between EUR 3 and 50 million (excluding civil law partnerships),
• universities and independent public health care centres (≥3 million EUR)
• foreign entrepreneurs (≥3 million EUR), not being natural persons,
• branches or representative offices of foreign entrepreneurs, which are not natural persons,
• local government units,
• cooperative banks,
• cooperative savings and credit unions.

In all specialised tax offices, including those of national reach, as before, taxpayers and payers of excise duty, gaming tax and tax on the extraction of certain minerals will not be settled.

Ordinary tax offices

Ordinary tax offices will serve taxpayers (including legal persons and organisational units) whose revenues do not exceed EUR 3 million and who:

• as residents within the meaning of the foreign exchange regulations, participate directly or indirectly in the management or control of enterprises located abroad,
• have a share in the capital of such enterprises, or if such enterprises are managed, directly or indirectly, by a non-resident within the meaning of foreign exchange regulations or if the non-resident has at least 5% of the voting rights at the general meeting of shareholders,
• as residents within the meaning of the foreign exchange regulations, participate directly or indirectly in the management or control of a domestic entity and a foreign entity within the meaning of other laws, or simultaneously have a share in the capital of such entities.

Centralisation for WHT withholding tax

The next element of changes is the centralisation for the withholding tax. Since 1 January 2021, all WHT settlements have been processed by Lubelski Tax Office in Lublin.

Centralisation for Investment and pension funds (II MUS)

The centralization also covered the service of investment and pension funds. The 2nd Mazovian Tax Office in Warsaw (II MUS) was identified to serve these entities.

The role of the office is to provide tax settlements for, among others:

• entities operating under the provisions of the Financial Instruments Trading Act and the Act on Investment Funds and Management of Alternative Investment Funds,
• entities operating under the provisions of the Act on the Organisation and Operation of Pension Funds,
• foreign entrepreneurs (≥3 million EUR) with permanent business locations in more than one territorial coverage of other heads of specialised tax offices (excluding natural persons).

Verification of a taxpayer's revenue

Since 1 January 2021, the way in which revenue is verified has also changed. If an entity submits financial statements prepared in accordance with the provisions of the Accounting Act or in accordance with IAS, the classification into the category of taxpayers and payers to be served by specialised tax offices is made on the basis of the revenue reported in these financial statements and not the revenue reported in the CIT tax return.

However, it should be noted that at present to determine the competence of the office, the revenue is calculated on the basis of data for 2019, unless the tax year does not overlap with the calendar year, and then the data for the most recent tax year which ended no later than in 2019 shall be taken into account.

No obligation to inform the tax office - automatic assignment to the right one

All the changes described above may raise concerns among taxpayers with regard to assignment to the competent office. These fears are unfounded, as from 1 January 2021 there is an automatic categorisation of entities, so taxpayers do not need to submit notifications about the change of office.

ATTENTION!

The CIT return is submitted:

• if the tax year corresponds to the calendar year - to the office competent as of 1 January 2021
• if the tax year is different from the calendar year - to the tax office previously competent as of the first day of that tax year

• PIT returns (filed by the payer) for 2020 - shall be submitted to the office competent as of 1 January 2021
• The declarations JPK_V7M for December 2020 or JPK_V7K for the fourth quarter of 2020 shall be submitted to the tax office competent as of 1 January 2021

Any corrections to declarations/statements/information drawn up after 31.12.2020, regardless of the period to which they relate, shall be submitted to the office competent as of 1 January 2021.