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Thursday, June 20, 2024

Tax on charitable collections. Senate committee amendments

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Senate committees proposed amendments to the deregulation act. The point is, among other things, to remove from the act the provisions introducing taxation of collections for charity purposes.

At the end of January, the Sejm introduced changes in inheritance tax and donations. The solutions caused a wave of controversy, especially the introduction limits for donations received from multiple people. Today there are no such restrictions. If the regulations adopted by the lower house come into force, the drop-offs announced to finance expensive therapies for patients will be at risk.

Tomasz Chołast, member of the management board of zrzutka.pl, pointed out in an interview with “Dziennik Gazeta Prawna” that due to the need to pay additional tax, the new regulations will distance people in need of support from receiving the necessary help, and in extreme cases may prevent them from getting it on time. .

– I can understand the desire to tax situations in which periodically organized public collections are a source of income for someone. But I don’t understand the collection of tax on collections organized in dramatic life situations, for operations, rebuilding a house after a fire, rehabilitation, shelters, treatment of animals. I do not know whether the deputies who voted for such a bill were aware of the consequences of their decision. I hope that the necessary amendments will be made to the act as soon as possible – commented Małgorzata Samborska, a tax advisor from Grant Thornton.

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Get to the point quickly Prime Minister Mateusz Morawiecki commented, who declared in an interview with the interia.pl portal that he would not allow “this to in any way affect the issues of raising funds for charity and initiatives of this type”. – I have already given instructions to the Ministry of Finance to clarify these issues immediately. Aid organizations can rest assured that these solutions will in no way affect their very important activities, he declared.

The head of the government also spoke about the “overzealousness of some officials” and emphasized that in terms of the tax on collections, “we are returning to the state as it was before”.

Collections tax – adjustments

On Friday, the Senate committees: legislative and human rights, Rule of Law and Petitions considered the act amending acts in order to eliminate unnecessary administrative and legal barriers. The act passed by the Sejm was a parliamentary bill.

As for the amendment concerning the deletion of the provisions introducing taxation of collections, it was submitted by Senator Stanisław Gogacz (PiS). – I would like to submit a proposal to delete article 5 in the act in question, i.e. the article we have already discussed today. An article on taxes, an article that causes difficulties when it comes to charity collections – said Gogacz.

The amendment was supported by Senator Krzysztof Kwiatkowski (Circle of Independent Senators), Jan Libicki (PSL), Wadim Tyszkiewicz (independent), Jolanta Hibner (KO) and Magdalena Kochan (KO).

Rapporteur Bartholomew Wroblewski (PiS) said at the committee meeting that the changes contained in the deregulation act will expand the freedom of citizens and entrepreneurs, the freedom running a business, personal freedom, and will strengthen the implementation of property rights, will also support social development and will contribute to the increase in the competitiveness of the Polish economy. – Eliminating unnecessary legal burdens results in increasing citizens’ trust in the state and the law it enforces, and raises the level of legal culture in society. The burden on public administration bodies has also been reduced (in the act), which can thus be more effective and cheaper, he added.

Amounts free of inheritance and gift tax

The act on amending acts in order to eliminate unnecessary administrative and legal barriers adopted by the Sejm introduces changes to several legal acts, including raises the income threshold for the so-called unregistered activity or modifies the rules for obtaining a firearms license.

The law also raises tax-free amounts from inheritances and gifts. As a result, the acquisition of ownership of things and property rights with a net value exceeding PLN 36,120 per person or PLN 108,360 per person over a period of 5 years will be exempt from inheritance and donation tax – if the purchaser is a person included in the first tax group. In turn, in the case of a buyer classified in the second tax group, the acquisition of ownership of things and property rights with a value of PLN 27,090 from one person and PLN 81,270 in the case of acquisition from several persons will be subject to taxation. If the buyer is included in the third tax group, then the limits will be PLN 18,060 for one person and PLN 54,180 for many people. The 5-year periods that are taken into account will be counted from July 1, 2023.

The Act also introduces an amendment to the Code of Administrative Procedure, according to which the decision issued in the first instance, the justification of which the authority withdrew from because the party’s request was fully taken into account, is final. The Act also amends the Code of Civil Procedure, Geodetic and Cartographic Law and the Code of Petty Offenses.

The act is to enter into force 14 days after its promulgation, with the exception of certain provisions whose effective date is different.

Main photo source: Red_Baron/Shutterstock

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