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Right to the refund of overpaid tax

An overpayment arises if the undue tax was paid (i.e. payment was made in spite of the fact that there was no obligation to pay) or the payment amount was higher than required. The overpayment also occurs where a taxpayer (i.e. the employer or the pension institution) collected the undue tax, or where the collection amount was higher than the tax due.

In these situations, a taxable person has the right to ask the tax authority to confirm that there had been an overpayment of tax. The overpayment with is interest is credited ex officio towards any tax arrears, including interest for late payment, and current tax liabilities, and if no such items exist, is refunded to the taxable person ex officio. A taxable person may also request that the overpayment should be credited in whole or in part towards their future tax liabilities.

In a situation where a person is not obliged to have a bank account, the overpayment is refunded in cash. In order to obtain the refund to a bank account, a taxable person is obliged to submit to a tax office a NIP-3 (or NIP-1) form in which they indicate the bank account number. If the overpayment is refunded by postal order, any applicable postal charges are deducted from the amount.

If a tax authority defaults on the deadline for the overpayment refund, a taxable person is entitled to interest equal to the interest for late payment that is collected on tax arrears.

Right to correct a tax return

If a taxable person makes a mistake in their tax return, such as in the determination of the tax liability, overpayment or refund amount and other data in the form, they have the right to file a corrective return. The right to correct the tax return is suspended for the duration of the tax proceedings or tax audit (to the extent related to tax liabilities to which the proceedings or audit refer).

Any mistakes are corrected by submitting a corrective return along with written reasons for the correction. While submitting a corrective return, a taxable person must remember to pay any outstanding tax or return the overpayment (that was unduly recognised and the refund of which was unduly collected by the taxable person) – along with interest. If, following the document review, it turns out that a tax liability, an overpayment, a tax refund or a loss amount does not exceed 1000 PLN, and provided that the correction was necessitated by errors of calculation and obvious mistakes, the tax return will be corrected by the tax authority on its own. Then the taxable person concerned receives a certified copy of the corrective return for approval (with the right to object). If no objection is lodged, the correction made by the tax authority will bear the same legal effects as the taxable person's correction. If a corrective tax return is effectively submitted along with reasons (except for corrective returns that are submitted in connection with a tax audit or checks) and if tax arrears are paid within 7 days of filing the corrective return, a taxable person has the right to apply a reduced rate of interest for late payment (i.e. ¾ of the basic rate).

Right to request a certificate

If a specific legal provision requires an official confirmation of certain facts or legal status, or a taxable person has a legal interest in the official confirmation of certain facts or legal status, the taxable person may request a relevant certificate from the tax authority (e.g. a tax clearance certificate). The certificate should be issued not later than within 7 days. The tax authority may only issue a certificate whose content is confined to the taxable person's request.

Right to data protection

Personal details contained in tax returns and in any other documents and information submitted to a tax authority, as well as any data from files of tax cases are covered by confidentiality in tax matters. Any unauthorised disclosure of such information is subject to criminal liability.

Right to reliefs in repayment of tax liabilities

Where a taxable person settles their taxes via a taxpayer (earns income from employment, retirement pension, disability pension, etc.), they may apply to a tax authority to exempt the taxpayer (the employer, the Social Insurance Institution (ZUS)) from the obligation to collect the tax. When submitting such a request, the taxable person must demonstrate that the tax collection threatens their important interests, in particular, their existence, or provide prima facie evidence that the tax collected would be disproportionately high compared to the tax due for a tax year or another settlement period. If a taxable person pays tax advances on their own, a tax authority may also – at the request of the taxable person – limit the collection of such tax advances. The person must, however, provide prima facie evidence that the advances calculated in line with the rules specified in the tax statutes would be disproportionately high compared to the tax due on the income that the person expects to earn in a given tax year.

If some vital or public interest exists that weighs in favour of such action, a taxable person may also request the following from a tax authority: that the deadline for payment of a tax or tax arrears with interest for late payment be postponed; that payment of a tax or tax arrears with interest for late payment be spread into instalments; that tax arrears, interest for late payment or a deferral fee be remitted in whole or in part (with the deferral fee understood as the fee for benefiting from the instalment arrangement or remittance). These reliefs are granted exceptionally, only in particularly justified cases. Entrepreneurs will find a full catalogue of admissible uses of tax authorities' aid in the Tax Code.

Right to obtain a written interpretation

If a taxable person is in doubt as to how to apply tax regulations in an individual case, they may request for a written interpretation (individual interpretation). Such written interpretations are prepared by directors of tax chambers in Bydgoszcz, Katowice, Poznań and Warsaw, acting on behalf of the Minister of Finance. Before sending a request, a taxable person should check which tax chamber director is competent for the person's place of residence or registered address. The request should include a comprehensive account of the facts or a future event, and the taxable person's own position concerning the legal assessment of such facts or the future event.

A request is not allowed if: the facts of the case presented in the request are the subject of tax proceedings, tax audit or the tax inspection authority's inspection proceedings that are pending on the day when the request for interpretation is submitted, and if the essence of the case included in the request has already been resolved in a decision or a ruling of a tax or tax inspection authority.

A request for individual interpretation is subject to a fee of 40 PLN, which must be paid within 7 days of the request filing date. If a single request covers several groups of facts or several future events, then the fee is charged on each separate group of facts or each separate future event presented in the request. If the fee has been paid but was not due, then it will be refunded within not later than 7 days following the conclusion of the interpretation procedure.

Right to appoint an agent to sign a tax return

An agent may be appointed to sign a tax return. If a tax return is signed by an agent, a taxable person is relieved from the signing obligation (unless separate statutes provide otherwise).

Rights in the course of tax procedures

Right to actively participate in tax proceedings

A taxable person has the right to actively participate, in person or through an agent, at every step of the tax proceedings to which they are a party, regardless of whether they are carried out by the first or second instance body. The right survives the end of the proceedings. Consequently, a taxable person has the right to access the case files within the premises of a tax authority, in the presence of an employee of that authority, and to make notes from, or copies or duplicates of such files. In addition, they have the right to request certification of copies or duplicates of the case files, or request certified duplicates from the case files. Before a decision is made, a taxable person is also authorised to express their opinion on the evidence collected in the case within 7 days of receiving a tax authority's notice.

Right to have the case promptly processed by an authority

A taxable person has the right to expect that their case will be processed without undue delay, within the time-limit not exceeding one month, and if the case is particularly complicated – within a time-limit not exceeding 2 months following the initiation of the proceedings. A case in the appeal proceedings should be processed within a time-limit not exceeding 2 months following the receipt of an appeal by the appellate body. If a request for a hearing has been submitted or a hearing has been held ex officio, the case should be processed within the time-limit not exceeding 3 months. If a case is not processed within a specified time-limit, a tax authority is obliged to notify a taxable person to this effect, give reasons for the delay, and specify a new deadline for processing the case. Moreover, if a case is not processed within a specified time-limit or within a time-limit specified in the notice, a taxable person has the right to submit a prompt-note to a tax authority of a higher instance, or to the Minister of Finance – if it was a tax chamber that has failed to process the case on time.

Right to have the procedural time-limits restored

In a situation where a taxable person fails to meet the procedural time-limit to perform a certain act (e.g. to lodge an appeal or complaint, etc.), they have the right to request a competent tax authority to restore the relevant time-limit. The tax authority is obliged to restore the time-limit, if all of the following conditions are satisfied: prima facie evidence exists that the taxable person's failure to meet the time-limit was not by their fault; the request to restore the time-limit was submitted within 7 days following the date when a reason for failure ceased to apply; and that upon submission of the request, another act was completed for which a time-limit existed.

Right to appeal against a decision

A taxable person has the right to appeal against a tax authority's decision given in the first instance, within 14 days following the receipt of the decision, and the information on such right should be included in the decision. An appeal is lodged to a competent appellate body via the tax authority that issued the decision. The appeal should include objections to the decision, specify the essence and scope of the request that is the subject matter of the appeal, and indicate evidence to justify the request. At a reasoned request, the appellate body may hold a hearing at which the taxable person can provide explanations, submit requests, proposals and objections and present evidence in support thereof. The appeal may be withdrawn at any stage of the appeal proceedings, until the decision is made by the appellate body. The appellate body may refuse to comply with a request for withdrawal of the appeal, if it is probable that as a result of such withdrawal a decision with serious legal defects will remain in force.

A decision of the appellate body may be appealed against by the taxable person, via that body, to a voivodeship administrative court within 30 days following the receipt of the decision, and the information on such right should be included in the decision.

Enforcement of a decision

A decision that is not final and that imposes on a taxable person an obligation enforceable in accordance with the provisions of administrative enforcement proceedings will not be executed unless the decision is immediately enforceable. Immediate enforceability is imposed by way of an order about which a complaint may be made. A final decision is enforceable, unless its execution is stayed. A tax authority of the first instance stays the execution of a final decision if a complaint has been lodged to an administrative court, until the administrative court's ruling becomes final: at the request of a taxable person – following the establishment of a performance bond relative to an obligation arising from the decision, together with interest for late payment, in the form of, inter alia, a bank or insurance guarantee or a bank surety – up to the amount and for the duration of the bond; ex officio – following a valid entry of a compulsory real estate mortgage, or an entry of a tax lien, both with the priority of satisfaction, which secure performance of an obligation arising from the decision, together with interest for late payment – up to the amount corresponding to the value of the compulsory real estate mortgage or the tax lien. If the execution of a decision is stayed, it does preclude the possibility of its voluntary execution.

Right to appeal against a ruling

Similar rules apply to appeals against rulings, except that the appeal against the ruling may be lodged within 7 days following its receipt. The complaint may only be lodged if the Tax Code so provides. Information for the taxable person on the right to complain, and the time-limit and method to lodge a complaint will be included in the ruling.

Right to challenge a final decision

In a situation where a particular tax decision has become final, a taxable person has the right to request a tax authority to challenge the decision, in cases specified in the Act, and by: resumption of the proceedings, or annulment, revocation or amendment of the decision.

Specific conditions for use of each of the above-mentioned procedures are specified in legal regulations. A taxable person should select the procedure that suits the circumstances present in the case. These procedures are considered extraordinary.

Right to seek reimbursement of the proceedings costs

A tax authority is obliged, at the request of a taxable person, to reimburse the costs of the proceedings, including travel expenses related to personal appearance, if the proceedings were initiated ex officio or when a person was wrongly summoned to the tax authority. A request for reimbursement of travel expenses should be submitted to a tax authority that manages the proceedings prior to the decision in the case, under pain of losing that claim. If a tax authority has incurred the costs of the proceedings in a taxable person's interest or following their request, and such costs do not stem from the statutory obligation of the authority that manages the proceedings, then such costs may be charged to the taxable person.

Rights related to the tax audit

A taxable person should be notified of the authorities' intention to initiate a tax audit. The provisions of the Tax Code provide for exceptions, i.e. situations where a tax authority does not notify of its intention to initiate the audit. If this is the case, a taxable person is informed, once an audit is already in progress, why no audit notification has been served. The audit is initiated not earlier than after 7 days and not later than after 30 days following the service of the audit notification. Any audit before the expiry of the above-mentioned period of 7 days must be approved by the auditee. On the other hand, if the audit is not initiated within 30 days following the service of the audit notification, a re-notification is required for the audit to start. As a rule, a tax audit is initiated when the auditee receives the auditor's audit authorisation document and is shown the auditor's official ID. A tax audit authorisation document must include information on basic rights and obligations that apply during the audit. If the auditee does not agree with the audit findings, they may, within 14 days of having received the audit report, submit their reservations or explanations, while indicating appropriate motions as to evidence. The auditor is obliged to take a stance on the above.

Tax scale for personal income tax

 

Income up to 85 528,00zl – 18% minus the tax reduing amount 556zl 02gr

 

Income above 85 528,00 zł - 14 839 zł 02 gr + 32% surplus over 85 528 zł

 

Minimum employee wage 2015r.

 

1 750,00 zł

 

Important deadlines

 

On the 15th day of each month – immovable property tax payment by legal persons

 

On the 20th day of each month – income tax advance payment by employers and their employees, income tax advance payment by legal persons

 

On the 25th day of each month – VAT declaration submittal, VAT payment

 

On the 30th of each April – annual income tax return submittal, tax payment