Polish Deal 2.0 – postponed regulations (in force from January 1st, 2023)

Polish Deal 2.0 comes into force on July 1st, 2022. However, it should be remembered that not all provisions of the amendment will take effect immediately. Some of them will become effective no sooner than on January 1st, 2023. These regulations are less important from the standpoint of the majority of taxpayers in Poland, but it is worth remembering them.

If you want to read about the regulations that come into force on July 1st, 2022, we recommend this article.

Cash transactions limit

First of all, the limits for payments made in cash will change – both for entrepreneurs and natural persons (not that before the amendment, the limits applied only to entrepreneurs).

Currently, the limit for entrepreneurs in the scope of transactions related to the conducted business activity is 15,000 PLN. From January 1st, 2023, the limit will amount to 8,000 PLN. Any higher transaction amounts – both between entrepreneurs and in the entrepreneur-consumer setup – will have to be made exclusively through the bank account.

In addition, entrepreneurs should remember the relationship of non-cash payments with the split payment mechanism and the white list of VAT taxpayers. It is worth following three principles in this aspect:

• Starting from January 1st, 2023, payments above 8,000 PLN should be made non-cash, i.e. using a payment account.
• The payment account to which the payment is made must be included in the white list of VAT taxpayers – unless the transaction party submits a ZAW-NR notification to the Tax Office within 7 days of the transaction date.
• Payment should be made following the rules of the split payment method (MPP).

The legislator also provided sanctions for entrepreneurs who will not comply with the new solutions. Among them is the loss of the right to settle the part of the amount exceeding the value of the new limit (8,000 PLN).

Polish Deal 2.0 – the tax-free amount for contractors

January 2023 will also bring changes in the aspect of the tax-free amount. It will be able to be applied by new groups of employees, such as those employed under a civil law contract (contractors) and persons receiving remuneration for work performed in person.

To take advantage of the new option, the taxpayer will be obliged to submit an appropriate declaration (e.g. PIT-2), in which he will have to indicate the amount of the tax deduction by the payer – from the available options 1/12, 1 / 24 and 1/36 of the tax-reducing amount.

Relief for real estate which is a monument – limited scope

The relief, commonly known as “Pałacyk+”, was introduced at the beginning of 2022 with the first Polish Deal amendment. It offered relief on the purchase of historic properties, while holders of eligible properties could count on financial aid for maintenance, refurbishment, and renovation of such real estates. The support mechanism consisted of the possibility of deducting the expense for the purchase of the above-mentioned activities related to the monument from the tax-deductible costs.

From January 2023, the scope of the tax relief will be significantly reduced. It will only be available for renovation services. In addition, the requirement will be the possibility of using financial aid only after approval of the renovation by the conservator of monuments.

Compulsory insurance in a limited joint-stock partnership

Starting from January 1st, 2023, general partners of limited joint-stock partnerships will be compulsorily covered by social and health insurance.

Possibility of resignation from the application of increased tax deductible costs

Polish Deal 2.0 also allows employees to apply to calculate advance payments without applying increased monthly tax deductible costs (amounting to 300 PLN from July 2022).

Polish Deal 2.0 – liability of the payer

A regulation has been added stating that the payer will not be liable in the event that his understatement or non-disclosure of the tax base resulted from the application of declarations submitted by the taxpayer, affecting the calculation of the advance payment.