Income and cost taxes in the economy 2600-MRCdz1PDKG

Lecture:
A. The Polish Tax System and Tax Administration
1. General function and purpose of taxes in the modern economy:
a) The role of taxes in the modern economy
b) Identification of different types of taxes

2. Framework of tax regulations:
a) Sources of tax law
b) Differences between tax avoidance and tax evasion, and the purpose of anti-tax avoidance regulations
c) Ethics and professional standards in taxation

3. Tax returns, tax information, applications for overpayment statement/tax refund, and tax payment (including advance tax payments):
a) Principles and deadlines for filing tax returns for individuals and companies
b) Applications for overpayment statement/tax refund
c) Deadlines and methods of tax payment
d) Calculating advance tax payments for individuals and determining payment deadlines
e) Procedures for filing annual tax returns for individuals and calculating the tax due
f) Obligations of employers regarding the withholding of income tax from employee payroll
g) Advance corporate income tax payments – standard and simplified versions
h) Procedures for filing annual tax returns for companies and calculating the tax due
i) Tax reliefs and exemptions for small businesses
j) Procedures and deadlines for withholding tax (WHT) payments
k) Information and records maintained by taxpayers for tax purposes

4. Procedures regarding tax ruling requests, tax arrangements, and tax proceedings:
a) Individual tax rulings
b) Tax proceedings, including deadlines and competent authorities
c) Tax audits, including the rights and obligations of the taxpayer
d) Taxation of undisclosed income
e) Fundamentals of regulations regarding Mandatory Disclosure Rules (MDR/tax arrangements) and taxpayer obligations in this scope

5. Penalties for non-compliance:
a) Circumstances under which a penalty or interest can be imposed
b) Calculation of interest on tax arrears and penalties

B. Personal Income Tax (PIT)
1. Scope of personal income tax:
a) Taxpayer and subject of taxation
b) Tax residency of an individual
c) Taxation of residents and non-residents
d) Principles of taxing foreign income earned by residents
e) Principles of taxing income earned in Poland by non-residents
f) Impact of double taxation treaties (DTT) on the taxation of various types of income

2. Employment income:
a) Income from employment and the tax base
b) Deductions
c) Employee benefits – tax principles
d) Employment relationship vs. activities performed personally

3. Income from activities performed personally:
a) Income classified under this category and the method of tax base calculation
b) Deductions

4. Business income:
a) Income classified under this category and the method of tax base calculation (including non-monetary income)
b) Tax-deductible expenses
c) Depreciation allowances:
- Conditions for depreciating an asset
- Non-depreciable assets
- Valuation of assets for depreciation purposes
- Calculation of depreciation allowances using all available methods, including one-off immediate expensing into tax costs
- Depreciation rules for cars and non-residential buildings
- Treatment of used and upgraded assets
d) Operating vs. financial leasing – distinctions
e) Tax loss settlements
f) Taxation of partnerships of individuals
g) Flat-rate tax (linear tax)

5. Income from real estate, investments, and other sources:
a) Income from real estate and the tax base
b) Depreciation allowances
c) Income from capital gains and the tax base
d) Income from other sources and the tax base

6. Income from the sale of movable and immovable property:
a) Taxation of real estate sales
b) Taxation of the sale of other assets, including shares/stocks and securities

7. Calculation of income and income tax:
a) Calculation of income considering different income categories
b) Calculation of income from various sources
c) Deductions from income for individuals
d) Tax credits / deductions from tax
e) Credit for tax paid abroad
f) Calculation of the tax due
g) Determination of the tax base and calculation of withholding tax
h) Advance tax payments

8. Flat-rate tax regimes:
a) Lump-sum tax on registered revenues (ryczałt od przychodów ewidencjonowanych)
b) Fixed-amount tax card (karta podatkowa)

9. Exemptions and reliefs:
a) Tax exemptions
b) Deductions for social and health insurance contributions and other deductions
c) Joint tax filing for spouses
d) Reliefs for single parents

C. Corporate Income Tax (CIT)
1. Scope of corporate income tax:
a) Taxpayer and subject of taxation
b) Tax year
c) Corporate tax residency
d) Taxation of residents and non-residents
e) Permanent establishment (PE)
f) Sources of revenue

2. Income subject to corporate income tax:
a) Transition from accounting profit to taxable profit (book-to-tax adjustment)
b) Non-taxable revenues
c) Tax-deductible and non-deductible expenses
d) Revenues in kin
e) Depreciation allowances
f) Transfer pricing
g) Tax loss deductions

3. Calculation of corporate income tax:
a) Reliefs and deductions
b) Credit for tax paid abroad
c) Withholding tax (WHT)
d) Tax on revenue

D. Social Security
1. Obligations of the contribution remitter
2. Contributions on employee payroll
3. Contributions of non-employee individuals
4. Health insurance contribution

E. Value Added Tax (VAT) – Fundamentals
1. Core elements of the tax structure:
a) Taxpayer
b) Subject of taxation, taxable transactions
c) Tax base
d) Tax rates (including the 0% rate and reduced rates)
e) Calculation of tax in international trade, including intra-EU transactions

2. VAT registration – obligation and procedure
3. Fundamentals of VAT calculation:
a) Tax point (arising of tax liability) and place of supply
b) Output VAT
c) Input VAT – right to deduct, exclusions, and limitations on the right to deduct
d) Reverse charge mechanism
e) VAT refunds

4. Documentation and compliance obligations:
a) Elements of a VAT invoice
b) VAT records/ledgers
c) VAT returns
d) Tax payment deadlines
e) Split payment mechanism

Classes:
1. Personal Income Tax Workshops:
- examples of identifying the taxpayer, subject of tax, revenues, tax-deductible expenses, income, tax base, deductions from income, tax amount, and tax credits under various factual circumstances
- full tax settlement under various factual circumstances

2. Corporate Income Tax Workshops:
- examples of identifying the taxpayer, subject of tax, revenues, tax-deductible expenses, income, tax base, deductions from income, and tax amount under various factual circumstances
- full tax settlement under various factual circumstances

3. Fundamentals of VAT Workshops:
- basic examples of identifying the taxpayer, subject of tax, tax base, input VAT, output VAT, and the mechanism of deducting input VAT from output VAT under various factual circumstances
- full tax settlement in the baseline variant under various factual circumstances