Recently, National taxation Information (KIS) has issued a fresh explanation of taxation rules that resolves doubts about the taxation treatment of private business usage of telephones and routers. This is crucial news for many entrepreneurs and employees in Poland who feared that utilizing specified devices could lead to additional taxation burdens.
Does the Service telephone Mean Higher Taxes? fresh KIS Resolution
Many employers who make available business phones and routers to their employees were asked whether consent to their private usage should consequence in an additional individual income taxation (PIT). This uncertainty was due to the deficiency of clear rules regulating the division of usage into business and private purposes.
An example of this is simply a company employing about 4,000 employees who asked KIS to interpret the rules. The employer made available to employees telephones with unlimited subscriptions and routers with a large data package essential for the performance of business duties. At the same time, he allowed their private use. The entrepreneur, fearing the taxation consequences, preventively counted a tiny amount to the taxation base of each employee, recognising this as income from the private usage of business equipment.
No Division capacity = No Additional Tax
The key component of KIS's explanation was the fact that the company did not have the method capability to accurately separate the usage of equipment for business and private purposes. It was this inability that proved decisive. KIS considered that since gross cannot be accurately attributed to a peculiar employee, there is no basis for charging an additional tax.
What does this mean for entrepreneurs?
Although the explanation concerns a peculiar case, its implications may be crucial for many companies. Undertakings that make available to and licence the usage of service equipment to employees may avoid a complex calculation of hypothetical revenues provided that they are not technically able to separate both uses.
Nevertheless, each situation requires an individual analysis and an accurate knowing of the details of the interpretations of the KIS can aid to avoid taxation problems. This decision gives employers fresh arguments in talks with the taxation office and may reduce administrative costs associated with the management of business equipment.
Summary: What should we know about the fresh Interpretation?
The fresh explanation of KIS is an crucial step in clarifying complex issues relating to the taxation of private usage of business equipment. For many entrepreneurs and workers, this means that in the absence of method capacity to divide use, they do not gotta fear additional taxation burdens. However, it is worth remembering that each company should carefully analyse its situation in order to avoid unforeseen problems.
Read more:
New telephone tax. The taxation office has decided
