The amendment of the CIT/PIT regime, which enters in to force on 1 January 2020, introduces:
- the obligation to increase the taxable basis by the value of unsettled liabilities credited towards tax deductible costs. The increase in the taxable basis is shown in an annual tax return for the tax year in which 90 days elapsed after the expiry of the payment deadline given in an agreement or an invoice,
- the possibility of decreasing the taxable basis by the value of receivables credited towards revenues, which receivables have neither been settled nor sold. The decrease in the taxable basis may be disclosed in an annual tax return for the tax year in which 90 days elapsed after the expiry of the payment deadline given in an agreement or an invoice.
Tax losses will be also subject to an increase or decrease, accordingly.
If the decrease in the taxable basis is higher than the taxable basis, the decrease in the taxable basis by the non-deducted value will be made in the consecutive 3 tax years unless such a receivable is settled or sold.
The taxable basis is not subject to corrections if the receivable is settled by the date of filing of the annual tax return.
The taxable basis correction mechanism does not apply if:
- at the end of the month that precedes filing of a tax return, the debtor is
in bankruptcy or restructuring proceedings or in liquidation,
- at least 2 years elapsed as from issuance of the invoice or execution of the agreement that were evidence of the receivable.
Unsettled receivables are not subject to deduction from the taxable basis in case they have been included in the tax deductible costs, in particular, through provisions or write-offs.
The payment deadline – as from the expiry of which the 90-day term starts running – is counted in compliance with the provisions of the Law on counteracting excessive delays in commercial transactions (i.e., as a rule, it cannot be longer than 60 days, except for transactions between the so called big businesses).
Note that the decrease in the taxable basis is admissible, and the increase in the taxable basis is obligatory, in the case of a delay in payment under the terms described above, for purposes of calculation of income tax advances. Pertinent corrections of the advance amount are made in case the receivable has not been settled or sold till the date of payment of such an advance.
Provisions of the amendment do not apply to commercial transactions between affiliated entities.
New regulations apply in relation to receivables / liabilities maturing after 31 December 2019.