In a new report on the legislative changes being enacted by the new Polish government, the legal firm Greenberg Traurig says the most important of these are the farmland ownership policy act, the act on financial institutions, the retail sales act and the tax avoidance act. The farmland ownership act will come into force on May 1, introducing new limitations on the transfer of ownership title for agricultural land. “If the transfer of agricultural land results in the division of an existing farm,” writes the company “then such transfer will only be permitted if certain criteria and conditions are met, which do not allow for the sale of such land for commercial development purposes.” Greenberg Traurig warns that an amendment to the draft is on the way and appears to be a high priority for the Polish parliament.
The act on financial institutions will place a monthly 0.0366 percent levy on the value of the institution’s assets. It will apply to domestic banks, branches of foreign banks, and of credit union institutions, cooperative savings and loan unions, domestic insurers, branches (and main branches) of foreign insurers and reinsurers and consumer credit institutions. All bank assets exceeding PLN 4bn will be subject to the charge.
The retail sales tax is currently in draft form only, writes Greenberg Traurig, having been submitted by the Ministry of Finance in early February. “Based on official communications from the Ministry of Finance, the retail sales tax would be imposed on commercial franchise chains; traditional retail sellers; and e-commerce retail sellers whose retail sales revenue exceeds PLN 1.5 million monthly (PLN 18 million per annum). The rates are expected to depend on the volume of sales of the company, and which day of the week the sales take place: 0.7 percent on revenue achieved on business days up to PLN 300 million; 1.3 percent on revenue achieved on business days in excess of PLN 300 million; and 1.9 percent on revenue achieved on Saturdays, Sundays, and other statutory holidays.
In terms of the tax avoidance act, the company finds that it is “designed to prevent actions which are carried out mainly for the purpose of achieving a tax benefit contrary to relevant tax legislation…actions which would not have been adopted by an entity acting rationally other than to achieve an artificial tax benefit in excess of PLN 100,000 would be considered tax avoidance.” Following criticisms that the act would be unconstitutional if passed, the Finance Ministry is working on changes to it.
