Individual interpretation may be permissible even if a general interpretation has been issued

A recent ruling by the Provincial Administrative Court in Rzeszów indicates that an individual tax interpretation can be issued even when it concerns matters already covered by a general interpretation.

General interpretations vs. Individual interpretations

General interpretations are issued by the Minister of Finance and can be initiated ex officio or upon request. Their purpose is to ensure the uniform application of tax regulations by tax authorities.

On the other hand, individual interpretations are issued by the Director of the National Tax Information Service exclusively upon request and concern specific factual situations or future events described in the request. These interpretations provide legal protection to the applicant, the scope of which depends on whether the question in the application related to events that have already occurred (a factual situation) or are planned (a future event). The protection is broader if the interpretation is delivered before the events that are the subject of the interpretation occur.

Case proceedings

The Provincial Administrative Court in Rzeszów reviewed the case on April 23, 2024, and annulled the decision of the Director of the National Tax Information Service (KIS) from December 4, 2023, concerning company P. from G. The court decided that this decision was incorrect.

Company P. had submitted a request to the Director of the National Tax Information Service (KIS) for a tax interpretation on whether it could benefit from a tax exemption on all income from production in its plant and from when such an exemption would apply.

In the initial decision on September 19, 2023, the Director of the National Tax Information Service (KIS) determined that the company did not need an individual interpretation, as the general interpretation from 2019 was sufficient. The company appealed this decision, but the Director of KIS upheld his position in the December decision.

The company then filed a complaint with the Provincial Administrative Court, arguing that the general interpretation from 2019 did not address the current legal provisions, which had since changed.

The court sided with the company, ruling that the tax regulations cited by the Director of the National Tax Information Service (KIS) had changed since the general interpretation was issued. As a result, this interpretation could not be applied to the company’s situation.

Therefore, the court ruled that the Director of the National Tax Information Service (KIS) should consider the company’s case based on current legal regulations instead of relying on the older general interpretation. Consequently, the Director of KIS’s decisions were annulled.

Summary

The jurisprudence of the Provincial Administrative Court in Rzeszów opens the door to obtaining individual tax interpretations even when a general interpretation already exists. Entrepreneurs, especially those operating in the Polish Investment Zone, have the right to clear and precise answers to their questions regarding specific investments. This means that entrepreneurs can request an individual assessment of their situation, even if a similar issue has already been the subject of a general analysis by the Ministry of Finance.

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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