Poland: Rules for the Digitization of Accounting Documentation in CIT

| Image Credits: "Warszawa - Złota 44, InterContinental Warsaw & Warsaw Financial Center" by Fred Romero, licensed under CC BY 2.0.

On August 28, 2024, Poland's Ministry of Finance unveiled new regulations and guides regarding the digitization of accounting documentation for CIT taxpayers. These changes, primarily focusing on large entities and tax corporate groups, aim to streamline tax procedures and increase transparency by mandating the use of structured electronic formats for accounting records.

KEY UPDATES:

1. Introduction of JPK_KR_PD and JPK_ŚT_KR Structures: The Ministry released brochures detailing the JPK_KR_PD accounting book structure and the JPK_ŚT_KR structure for tangible assets records. These publications clarify how to interpret the elements of these new logical structures, offering businesses detailed guidance on compliance.

2. New Obligations for Large Entities and Tax corporate groups: Starting January 1, 2025, businesses with revenues exceeding EUR 50 million and tax corporate groups will be required to keep their accounting records using computer software that adheres to the new JPK_KR_PD structure. These records must then be submitted electronically to tax authorities.

3. Gradual Implementation Timeline: The requirements will be phased in over time. The first set of digital accounting books, following the JPK_KR_PD structure, will need to be submitted by March 2026, aligning with the deadline for 2025 tax returns. The Ministry has given companies the year 2025 to adapt their systems to the new standards.

• For entities earning over EUR 50 million and tax corporate groups: From January 1, 2025, they must include tags identifying the accounts in their digital records. In 2026, additional details such as contractor identification numbers and invoice numbers from the National e-Invoicing System will be required.

• For other CIT taxpayers: These requirements will apply progressively starting from January 1, 2026, and January 1, 2027, depending on their tax year and revenue.

4. Simplified Reporting Obligations: In response to feedback from the business community, the Ministry has implemented measures to ease the burden on specific industries. Banks, telecommunications companies, and other entities will be exempt from providing taxpayer identification numbers (NIP) for certain core business activities. Fixed assets or intangible assets registered before January 1, 2025, will not need to be updated with additional information, aside from their deletion date.

5. Further Clarifications and Resources: To support businesses in understanding these new rules, the Ministry has published brochures explaining the logical structure of the JPK_KR_PD accounting book and fixed asset records. Additionally, a dedicated helpdesk (helpdesk@mf.gov.pl) and an FAQ section on the Ministry’s website are available to answer questions from the public. The Ministry encourages taxpayers to consult these resources and reach out with any concerns.

6. Industry Feedback Incorporated: The new regulations reflect a number of suggestions from various industries, particularly with regards to simplifying compliance. For example, the logical structure was divided into two separate ones—JPK_KR_PD for the accounting book and JPK_ŚT_KR for fixed assets—allowing for better clarity and management. The structure also includes options for generating data in periodic segments (monthly, quarterly, etc.), which is particularly beneficial for businesses with extensive records.

LOOKING AHEAD:

The Ministry's focus on digitization is part of a broader effort to modernize Poland’s tax administration. These changes signal a shift toward greater use of technology in tax reporting, aiming to increase efficiency for both businesses and tax authorities. However, companies will need to ensure their accounting systems are capable of complying with the new structures, especially as the deadlines approach.

For detailed information, the Ministry of Finance has made resources available on its website, and businesses are encouraged to prepare early to meet these upcoming obligations.

Links to brochures and FAQs:

• Ministry of Finance Brochures  

• FAQ Section 

By implementing these digital reporting requirements, Poland is aligning itself with global trends in tax administration, ensuring greater transparency and control over corporate financial practices.

We are working on English translations of the key documentation. Stay tuned!

SOURCE/RECOMMENDED READ:

• New rules for the digitization of accounting documentation in CIT - Ministry of Finance - Portal Gov.pl (www.gov.pl)