​At a meeting of the Scientific Council attached to the Ombudsman for Small and Medium-sized Enterprises, Paweł Kossecki presented an analysis of the government’s proposed tax changes. During the meeting, the proposed changes set out in draft bill No. UD458 were discussed, along with their implications for businesses in the SME sector. These changes relate to the Personal Income Tax (PIT) and Corporation Tax (CIT) Acts, as well as the flat-rate income tax.

In the case of PIT, the draft provides for: raising the threshold for the 12 per cent rate from up to 120,000 zł to 130,000 zł; introducing an additional threshold in the tax scale at 24 per cent (this threshold will apply once annual income exceeds 130,000 zł, but up to PLN 150,000) and an increase in the threshold for the 32 per cent rate from above PLN 120,000 to above PLN 150,000. These changes will reduce the tax burden on the middle class. The government has not opted to increase the tax-free allowance or to raise the second threshold to PLN 150,000, instead introducing an intermediate threshold. Meanwhile, the changes to corporation tax (CIT) involve raising the rate by 3 percentage points from 19 per cent to 22 per cent and apply to entities whose revenue in the tax year immediately preceding the tax year in question exceeded the equivalent of 50 million euros. For all other entities, the rates will remain unchanged. The most significant change for the SME sector will be the restriction on access to the flat-rate scheme – the revenue limit entitling entities to opt for this form of taxation will be reduced from 2 million euros to 250,000 euros. This change will have a severe impact on the SME sector. The draft bill also provides for an increase in the solidarity levy rate from the current 4 per cent to 5 per cent of the basis for its calculation, whilst the threshold of 1 million zlotys remains unchanged.
According to the draft’s provisions, these changes would come into force on 1 January 2027; however, the draft is currently at an early stage of the government’s legislative process.
Meanwhile, at the August meeting of the Entrepreneurs’ Council attached to the SME Ombudsman, the issue of VAT in the catering sector was discussed. Attention was drawn to a number of absurdities and the complexity of the system (several different rates, 23 per cent VAT on mineral water, or pizza with seafood). This issue is particularly relevant at present, especially in light of recent tax office audits. In his presentation, Paweł Kossecki highlighted the practical problems arising in relation to VAT in the catering sector, case law and proposed directions for change. He answered the question of why a coffee or a glass of wine is cheaper in an Italian café than in Poland (a uniform, reduced VAT rate in the catering sector in Italy). At Kossecki Tax Planning, we note that VAT is becoming less and less neutral, whilst at the same time growing increasingly complex.​