TGC Corporate Lawyers Legal review – February 2024

Newsletter – changes in regulations and interesting decisions – February 2024.

1. The EU’s Digital Services Act (DSA) has entered into force

From 17 February 2024 the EU’s Digital Services Act (DSA) is in full force. The new Internet Constitution, as it is called, is a set of rules for digital service providers acting as intermediaries for consumers and providers of goods, services and content. DSA refers to indirect services, i.e. social media networks, web hosting services, search engines and online marketplaces. The text of the Polish Regulation can be found here.

The aim of the Regulation is to increase digital security, increase the transparency of online platforms and protect fundamental rights. Internet users and consumers shopping online will gain the most.

Examples of DSA assumptions:

• transparent advertising
• easy way to report illegal content, goods or services
• simplified terms and conditions for the use of indirect services
• stronger protection for those who are victims of cyberbullying and harassment
• prohibition of certain types of targeted advertising

“DSA obligates providers of intermediary services to adapt their regulations and internal complaint procedures to the new regulations. It will also be necessary to put in place easy and transparent mechanisms for reporting illegal content. It should be remembered that DSA imposes additional obligations on providers of very large online platforms (VLOPs), such as mandatory assessment of systemic issues, appointment of a compliance officer, or submission to compliance audits” – said Piotr Dudek, Director of New Technologies, Defence & Aerospace Department at TGC.

2. Changes to tax on civil law transactions from 2024

A higher rate of tax on civil law translations (PCC) for those buying several properties (the sixth and subsequent flat) and exemption from PCC tax for buyers of the first flat is a complete revolution in taxation of real estate transactions. The amendment to the Tax on Civil Law Transactions Act enacted on 26 May 2023 introduced significant changes to real estate transactions. On the one hand, they are aimed at limiting the purchase of properties in bulk on the primary market by institutional investors, and on the other hand, they are intended to help people buying their first flats.

From 1 January 2024, a new, increased tax rate on civil law transactions – 6% – will apply when:

1. The subject of the sale is a flat or a share in a flat
2. The flat subject to sale constitutes a separate property
3. The flats are located in one or more buildings developed on one parcel of land
4. Sale of flats or shares are subject to VAT
5. At least six flats or shares in flats are acquired
6. The sales contracts were concluded with the same buyer

Learn more.

3. New date of entry into force of the mandatory use of e-Delivery

At the end of December 2023, it was decided to postpone the implementation of e-Delivery for, among other persons, advocates, legal advisors and tax advisors. The rules for the use of e-Delivery remain unchanged. From 1 October 2024, persons performing professions of public trust and non-public entities entered in the National Court Register (KRS)  will be obliged to switch to electronic delivery service. The full schedule of entry into force of the obligation to use e-Delivery can be found here.

4. Extension of the effective period of the Act on Assistance to Ukrainian Citizens

On 22 February, the Act of 9 February 2024 amending the Act on Assistance to Ukrainian Citizens in Connection with the Armed Conflict in Ukraine, the Personal Income Tax Act and the Corporate Income Tax Act entered into force. The existing facilitations for Ukrainian citizens who came to Poland after 24 February 2022 in connection with the pending war, regarding issues such as legality of stay and work in the Republic of Poland, will be extended until 30 June 2024.

5. Increased incapacity benefit

From 1 March 2024 the amount of incapacity benefit will increase to PLN 1780.96. In addition, the Sejm is currently proceeding with a citizens’ draft amendment to the Incapacity Benefit Act. It has been proposed that incapacity benefit should equal 100% of the current minimum wage. The draft also provides that in the event of a coincidence of entitlement to incapacity benefit and survivor’s pension, the amount of the first benefit is to be reduced so that total amount of both benefits does not exceed 300% of the lowest allowance for total incapacity for work. In addition, the amount of the reduced incapacity benefit may not be lower than 10% of the lowest allowance for total incapacity for work.

6. Forfeiture of a vehicle from an intoxicated driver

From 14 March 2024, the forfeiture of the vehicle from intoxicated drivers will be possible. This only applies when the car is owned by the person who caused the accident. If the car does not belong to the perpetrator or is jointly owned, the court will order the forfeiture of the equivalent value of the vehicle, the value of which is assumed to be the amount specified in the insurance policy, and in the absence of it, the average market value of the vehicle.

7. Changes to inheritance law in 2023

In 2023, a number of changes to inheritance law came into force. They result from the entry into force of the amendment to the Civil Code. The first batch of changes resulted from the introduction of a new legal form to Polish law – a family foundation. The second aimed at simplifying and clarifying the existing rules of inheritance. The changes were aimed at adapting the rules of inheritance to the changing legal realities and growing social needs. The amended inheritance law should make it easier to deal with certain inheritance matters.

You can find an article about the changes in the inheritance case here.

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