On Friday July 25 this year the Sejm adopted the Act on the special hydrocarbon tax, which will come into force on 1 January 2016. –
Lack of stable solutions in the tax system was the main reason why foreign entities have abandoned plans to invest in shale gas exploration in Poland – said Mariusz Korzeb, a tax advisor and expert of the Employers of Poland.
Adopting the Act on special hydrocarbon tax may be a positive stimulus to start planned investments in the natural gas production – as it will make introducing a proper, long-term financial policy of the company possible.
Unfortunately, the Act will lead to an increase in the amount of resource rent charged by the state – from approx. 21 percent to approx. 40 percent. This is due to the fact that entrepreneurs will be required to pay two additional taxes. The first one is the tax on mineral extraction (for natural gas, including shale gas and oil). The rate of this tax is expected to be 1.5 percent. to 6 per cent - depending on the type of deposit exploited. The second one is a special hydrocarbon tax. The rate will range from 0 per cent up to 25 percent depending on the relationship of revenue to expenses.
According to the adopted law, the obligation to pay a special hydrocarbon tax on mineral extraction will be effective from 2020 . Introduced solution is meant to stimulate investment in the hydrocarbon production and to reduce the fiscal impact on investment project in progress.
From 2016 taxpayers will perform duties related to the registration and filing tax returns. Tax returns will be submitted without notice, on a monthly basis by the 25th of each month for the previous month. The annual declaration will have to submitted by the end of the third month of the next year. Monthly and annual declarations are to be sent only electronically. Such solutions will unfortunately, increase the number of registration duties and further inflate bureaucracy.
Mariusz Korzeb, Employers of Poland Expert Tax Adviser