27 February 2020
How can I get tax law explained?

Have you just sold a real estate and are now wondering what tax to pay, or what tax relief to avail of? Have you just signed a non-standard agreement and remain unsure of any consequential tax obligations? Or maybe, you are running a business and find it challenging to interpret tax regulations…

There is a highly useful tool any taxpayer may use when attempting to understand some complicated legal provisions.

It is individual interpretation of the tax law.

Interpretation fulfills an informative function, for it explains tax regulations applicable in a given situation, and a guarantee function, since following individual interpretation may not do any harm to the requesting taxpayer.

Individual interpretation is an act issued by a tax authority at the request of the party concerned.

The request should satisfy formal requirements prescribed in applicable regulations.

The fundamental requirement is to describe in detail either the present facts (situation) or a future event.

What is more, the request ought to include the description of the requesting party’s position in a given matter. In other words, the requesting party should present his interpretation of the provisions of the law in this respect, and that is why it would be best for any such request to be drafted by an expert.

The request is subject to a fee of PLN 40 per every situation or a future event.

Once the request is properly submitted, the waiting time for individual interpretation is maximum 3 months.

Individual interpretation comprises the following: whether the position or interpretation of the law of the requesting party is or is not correct; reasoning involving the description of the facts (situation), citation of the position of the requesting party, and authority’s interpretation of the tax law, i.e. an explanation of the position presented by a body authorised to issue interpretations.

Thanks to individual interpretation, the following forms of protection are provided:

  • release from the obligation to pay tax (there is an extra condition here: it is required that the event which the facts (situation) correspond to, and are the subject of interpretation, occur before the service of individual interpretation);
  • non-accrual of default interest;
  • lack of accountability for a fiscal offence or misdemeanor.
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