Work is underway on proposed amendments to the Tax Code and certain other legislation (“Proposed Amendments”). A draft of the Proposed Amendments has appeared on the Cabinet’s list of proposed legislation on 14 June 2024.
The Proposed Amendments seek to implement the judgment of the Court of Justice of the European Union (“CJEU”) of 8 June 2023 in case C-322/22 (“Judgment”). In accordance with the Judgment, which was concerned with tax overpayments arising due to incompatibility of national law with Union law, those provisions of the Polish Tax Code of 29 August 1997 which regulate interest on tax overpayments resulting from CJEU’s holding of incompatibility between national law and Union law are contrary to the principle of effectiveness in conjunction with the principle of sincere cooperation.
The outcome of Proposed Amendments will be that in the case of tax overpayments resulting from a CJEU judgment holding national law incompatible with Union law, interest will accrue from the date on which the overpayment arose (which is when the withholding agent withheld a tax that was not due or higher than what was due) until the overpaid tax is refunded (treated as payment on account of overdue or future taxes) or requested to be treated as payment on account of future taxes.
The Proposed Amendments are now at the stage of intra-cabinet consultations.
We will keep you posted on the progress of this legislation.
If this issue pertains to your business and you are interested in our assistance, please contact us.
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