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Friday, October 22, 2021

Minimum tax (tax on large corporations) Polish Order. Appeal of the Polish Chamber of Commerce

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The new levy, which the government calls the “corporate tax”, is highly controversial. The Polish Chamber of Commerce calls for entities that trade in the field of low-margin products to be excluded from the structure of the levy in the course of parliamentary work.

At the beginning of September, the government adopted a draft tax act as part of the Polish Deal, which includes a new minimum income tax. – We propose solutions that are both pro-entrepreneurial, and which burden large international companies to the greatest extent. That is why we are implementing today corporate tax Prime Minister Mateusz Morawiecki said then. The idea is to tax companies that have high revenues and pay little or no income tax.

In adopted a few days later self-correction it was decided to extend the scope of the exemptions from the new levy. This includes the situation where the company does not have the freedom to set the price because it is regulated by the state or the price depends on the quotations on world markets. The original solutions were criticized by the Ministry of State Assets, emphasizing that they could hit companies of the State Treasury.

Further changes to the draft, which is already in the Sejm, are being requested by the Polish Chamber of Commerce. It is about “excluding from the construction of this levy entities that trade in the field of low-margin products”. “This will avoid a situation in which Polish wholesalers will collapse as a result of disproportionate fiscal burdens,” he added.

As we read in the statement, the Polish Chamber of Commerce expresses its “serious concern” with the construction of this tax, because in its opinion “it will indirectly hit tens of thousands of Polish micro, small and medium-sized enterprises”. – This type of regulation may lead to the collapse of thousands of distributors, especially low-margin products, says Maciej Ptaszyński, vice president of the Polish Chamber of Commerce, quoted in the announcement.

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Minimum tax – Polish Order

“In the opinion of the Chamber, the introduction of this tax will lead to the collapse or at least a serious deterioration of the situation of companies from the low-margin sector, including wholesalers and distributors as well as FMCG retailers – tens of thousands of Polish local entrepreneurs” – it was written.

– It should be remembered that Polish distributors and wholesalers operate on low margins with a large volume of turnover, in order to enable their customers, small and medium-sized companies, to offer products at prices competitive to those offered by foreign discount chains – points out the vice president of the Chamber.

PIH argues that “Polish wholesalers and retail stores cooperating with them, run by micro, small and medium-sized enterprises, in most cases often operate on profitability well below 1 percent”.

Therefore, according to the Chamber, the introduction of the so-called The minimum tax “is another burden hitting the wholesaler-based supply system for small shops.” – We have already pointed this out to representatives of the Ministry of Finance. We also appealed to the Parliamentary Public Finance Committee on this matter, Ptaszyński believes.

“As a result, in an extreme case, this may contribute to an increase in the retail prices of FMCG goods by taxing the turnover as a result of not taking into account the real margin and thus the profitability of the entity. . big discount chains “- claims PIH.

Main photo source: Shutterstock

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