The Ministry of Finance is working on amending the regulations, which is to allow the exemption from CIT income tax of all non-governmental organizations. The exemption is also to cover benefits received due to a difficult financial situation. The changes are also to tighten the taxation of family foundations.
On Monday, the list of legislative and programmatic works of the Council of Ministers, kept on the website of the Prime Minister's office, published information about work on the draft amendment to the Personal Income Tax Act, the Corporate Income Tax Act and certain other acts. This includes, among others, the exclusion of the income of all non-governmental organisations from corporate tax, economic activity.
The project I'm working on Ministry of Financeis to be submitted to the government for consideration in the third or fourth quarter of this year.
CIT exemption for all non-governmental organizations
“The proposed solutions are a response to the current needs to streamline tax regulations, eliminate doubts and interpretation discrepancies, and tighten the tax system. They implement the programmatic arrangements of the current government regarding the construction of a simple, friendly, and understandable tax system,” it was reported in an entry on the website of the Chancellery of the Prime Minister.
Among the changes that the draft act is to introduce are proposals that – according to information from the list of legislative works – will be beneficial for taxpayers. This includes, among other things, exempting the income of all non-governmental organizations from corporate tax, excluding business activity. In addition, the draft act is to include provisions aimed at “equalizing the tax situation of persons receiving benefits paid to meet the needs of the family (the property regime between spouses will not affect taxation)”. The amount of compensation paid to the injured party by the insured under the deductible is also to be tax exempt.
Among the changes beneficial to taxpayers that are to be included in the draft act, there is also to be a tax exemption for benefits received due to a difficult financial situation and a relief for thermal modernization expenses incurred as part of projects implemented by local government units (so-called umbrella projects). The draft is also to include a clear indication that the taxpayer may reduce the income constituting the basis for calculating the solidarity levy by losses from previous years.
Amendment to the regulations on family foundations
The draft act is also to include tightening changes in the scope of taxation of family foundations. Changes are planned in the IP Box preferences (this concerns tax relief for taxpayers who conduct research and development activities) – an employment requirement will be introduced. The basis for calculating the solidarity levy is also to be extended to include qualified income taxed under the IP Box and beneficiaries' benefits received from a family foundation.
According to the entry, the planned amendment is also to contain a technical and tidying-up part; it is planned, among other things, to eliminate duplicate tax exemptions for scholarships awarded to students by local government units and to delete “dead” provisions.
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