TGC Corporate Lawyers Legal review – July 2023

Newsletter – changes in regulations and interesting decisions – July 2023.

1. Employment of foreigners after lifting the state of epidemic emergency

On 1 July 2023, the state of epidemic emergency was lifted in Poland. For employees from abroad and their employers, this means the need to verify and regulate the formalities regarding the legalisation of stay and work by 31 July. Foreigners must, among other things, apply for renewal of work and residence permits in Poland. Employers, on the other hand, should, by this date, audit the documents confirming the legality of the stay and work of foreigners employed in the company and the conditions under which they are employed. Otherwise, persons who do not complete the required formalities will be treated as persons staying illegally in Poland.

Read more about employment of foreigners after lifting the state of epidemic emergency here.

2. Changes to non-registered business activities

As of the beginning of July 2023, the definition of non-registered business activity has changed. Currently, according to the Act of 6 March 2018 Entrepreneurs’ Law (Journal of Laws of 2023, item 803), “an activity carried out by a natural person whose revenue from that activity does not exceed 75% of the amount of minimum remuneration in any month […] and who has not carried out an economic activity for the last 60 months shall not constitute an economic activity.” The change in the threshold from 50% to 75% is related to, among other things, the increase in the rate of the minimum pay, which took effect on 1 July 2023. Currently, the minimum remuneration for work is PLN 3,600 gross. Therefore, the maximum income from non-registered business activity cannot exceed PLN 2,700 gross (75% of PLN 3,600 gross).

Learn more.

3. Majority of the provisions of SLIM VAT 3 came into effect

On 1 July 2023, most of the provisions of the 26 May 26, 2023, amendment to the VAT Act known as “SLIM VAT 3” came into force. Its purpose is to simplify the settlement of value added tax and to bring domestic regulations in line with CJEU case law. The most important changes include, among others:

• raising to EUR 2,000,000 the sales value limit entitling to small taxpayer status
• unification of rules for issuing binding information (including WIS)
• introduction of new criteria for determining VAT sanctions
• expansion of the possibility to dispose of funds accumulated in a VAT account
• possibility of faster VAT refunds for the so-called non-cash taxpayers
• new exchange rate conversion rules for corrective invoices
• introduction of an additional possibility for “third parties” to free themselves from joint and several liability
• clarification of the rules for making adjustments to output tax on a supply of goods made to a traveller
• new rules for converting exchange rates for correcting invoices

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4. Bankruptcy of Getin Noble Bank

On July 20, 2023, Getin Noble Bank was declared bankrupt. This carries with it serious consequences for people who have a loan in Swiss francs with this bank. The bankruptcy follows a forced restructuring that began in September last year. As a result of the bankruptcy, the bank’s creditors, in particular people with a loan in Swiss francs with a claim for the return of loan overpayments under invalid loan agreements, have 30 days to report their claims to the receiver in charge of the bank’s bankruptcy proceedings. Filing a claim after 30 days involves a fee of about PLN 1,100. Claims filed after the approval of the final plan for the distribution of bankruptcy funds will not be recognized.

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5. Secure 2% loan

A new state housing loan subsidy programme was launched in early July 2023. This loan can be obtained by a person who is under 45 years of age, does not currently own and has not owned an apartment, house or cooperative right to an apartment or a house in the past. One person can obtain a maximum of PLN 500,000 in loan. The funds can be used to purchase an apartment from both the primary and secondary markets. The programme does not apply to any price limit per square meter of housing. The subsidy on housing loan instalments is the difference between the fixed rate determined on the basis of the average interest rate on fixed-rate loans at lending banks, and the interest rate on the loan according to the 2% rate. The subsidy will be available for 10 years.

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6. Changes in the area of intellectual property law

As of 1 July this year, new rules for granting security for intellectual property cases apply. Among other things, a six-month time limit for filing a security application has been introduced. The application must be filed within six months of the date on which a party or participant in the proceedings became aware of the infringement of its industrial property right. The court should obligatorily dismiss the application filed after the expiration of this period. In turn, security should be granted only after the obligor has been heard. The application will be immediately considered by the court, without the obligation to hear the obligor first, only in situations where the nature of the case or the infringement requires it.

Learn more.

7. Change in jurisdiction of district courts

On 1 July 2023, an amendment to the Code of Civil Procedure (CCP) came into force. The changes concern, among other things, the jurisdiction of district courts. Previously, these courts recognized cases of property rights, the value of which was at least PLN 75,000. With the amendment to the CCP, this value has been increased to PLN 100,000. This means that all cases on property rights in which the value of the subject of the dispute exceeds PLN 100,000, in addition to cases for alimony, for violation of possession, for establishing property separation between spouses, and cases heard in electronic writ-of-payment proceedings, will fall under the jurisdiction of district courts. Cases in which the value of the dispute does not exceed this amount will be recognized by regional courts.

Click here to read our article on changes to the CCP.

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