Tax office opens up to the public

Traditionally, as every year during the Economic Forum, the editors of “Rzeczpospolita” organized a morning meeting of business representatives with the minister responsible for economic affairs. Because of the new solutions planned in the Polish Deal, the discussions between entrepreneurs and the Minister of Finance concerned mainly the details of this program.

A customer, not a taxpayer

Opening the meeting, Tadeusz Kościński pointed to the changes that have occurred in recent years in the Ministry of Finance and the National Revenue Administration.

- We focused on contact with the client. We no longer use the word "taxpayer", but just "client". We want the public to understand that taxes are not the money of the finance minister, but the common money of all Poles. Money financing the investments and enabling Poland’s development. It is important for such a mental change to take place in our heads - said Tadeusz Kościński.

- However, the taxes need to be fair in order for this to be possible. It is unacceptable when one entrepreneur honestly settles accounts with the office, while another is looking for ways to avoid taxation. The entrepreneur not paying the taxes will have an advantage, will have a higher margin, and will sooner or later eliminate the honest entrepreneur from the market. Our role is to eliminate this dishonesty - stressed the minister.

Minister Kościński added that unemployment level is for him the most important economic parameter. The issue whether the investors want to invest their capital in Poland is the second most important parameter.

– We have one of the lowest unemployment rates in Europe. The rating agencies maintain good assessment of our credit rating and the investors want to invest their capital in Poland. For me, these are the signals that our actions bring positive results – said Kościński.

Adam Siekierski, a manager for taxes at Philip Morris Polska asked if the ministry is planning any modifications to the taxation of tobacco products and especially to the taxation of innovative tobacco products.

Jan Sarnowski, vice-minister of fiancé and representative of the minister of finance for international cooperation in VAT area indicated that the goal of the ministry is to maintain the balance on the tobacco market.

– The works and thorough analyses are in progress at the ministry. They are not completed yet. As soon as we reach the end of this road, we plan to meet with the sector to ensure that all changes are the result of joint agreement - stressed Sarnowski.

Wiktor Janicki, president of AstraZeneca Pharma Poland, mentioned that the company has invested PLN 180 million in research and development in Poland. He stressed that the decision to locate the business in Poland was dictated not just by the availability of highly skilled specialists, but also by a relatively favourable regulative environment to conduct the business. Janicki also wondered if there is a chance for the changes planned by the government to include strengthening the incentives regarding investments in research and development specifically in respect to PIT (personal income tax).  

Tadeusz Kościński replied and pointed out that in his opinion the tax should be perceived by the companies as a cost but rather as an investment. He also stressed that the money staying in taxpayers’ pockets as a result of the Polish Deal will be an additional leverage for the businesses. – This is over PLN 16 billion, which will be spent by the consumers – stressed the minister.

Jan Sarnowski pointed at advantages of reliefs for innovations that have been in place for several years already: reliefs for research & development and IP Box. The businesses are now well familiar with both these solutions. The Polish Deal will not change their assumptions. Moreover, as of January 2020 the business will be able to take advantage of both these reliefs simultaneously.  

The vice-minister also pointed out that an allowance promoting the employment of innovative employees involved in R&D works will be implemented in the near future. – The additional deduction related to the employment of such professionals will increase from 100 to 200 percent. - emphasized minister Sarnowski.

Open to suggestions of businesses

Jean-Marc Harion, president of P4, operator of Play mobile network, stressed that upon acquisition of Virgin Mobile operator in Poland he had to pay disadvantages tax. He asked how this issue will be resolved in the future as he believes that the telecommunication market will continue to consolidate. 

Minister Kościński answered that he would like to consult this issue with the sector and maybe implement some system-wide modifications. He also pointed at aggressive tax optimizations resulting in weakening the markets on which the international corporations operate. 

Julien Ducarroz, president of Orange Polska, noted that the government plans special reliefs for automation and robotization processes, which concern however mainly the production sector. In his opinion the similar processes in the service sector should be supported as well.

The minister of finance replied that he is open to discussions with businesses.

– If the businesses are aware of good practices and interesting solutions elsewhere that might work and could be implemented in Poland, we would be happy to review them – said the minister.

Magdalena Rzeczkowska, a secretary of state, the head of the National Revenue Administration also stressed the openness of the fiscal authorities to cooperate with businesses.

– There is still a dominant unfair opinion that the fiscal authorities are after the entrepreneurs. The companies often do not want to talk to us and contact us in regard to tax issues as they are afraid to worsen their situation. This is a wrong solution and wrong approach – said Mrs Rzeczkowska.

– It is worth contacting us as early as possible. The later the contact the more difficult it is to help the business to overcome the problem - stressed Rzeczkowska.

Tomasz Jażdżyński, president of the management board of Gremi Media, pointed out that thanks to the current tax regime and attractive tax reliefs Poland has many companies that are small, agile and light.