Since the second half of 2023, there has been a noticeable increase in the number of refusals to issue individual interpretations regarding the provision of services by members of the management board or owners of companies to these companies…
❌ Since the second half of 2023, there has been a noticeable increase in the number of refusals to issue individual interpretations regarding the provision of services by members of the management board or owners of companies to these companies, when these services are subject to lower tax rates, e.g., flat-rate tax.
❌ The decision to issue an interpretation is made by the Director of the National Tax Information, who will refuse if he considers that the actions described in the application are aimed at tax avoidance, based on the General Anti-Avoidance Rule (GAAR). The GAAR is used in situations where one of the main purposes of the transaction is to obtain a tax advantage and serves to combat tax abuses.
✅ The provision of services to the company by members of the management board or owners, who are individuals, may be subject to preferential taxation, e.g., flat tax rates of 8%, 8.5%, and 12%. The tax benefit for the company arises from the possibility of deducting expenses for remuneration for these services as deductible costs.
✅ It is important to thoroughly document that the activities were actually performed and to indicate their economic justification. It is also essential to verify whether the remuneration for these services corresponds to market standards.
