Individual interpretation - what is it and how to get it?
Tax regulations, due to their complexity and length, are not always clear to taxpayers. It often happens that even tax authorities and administrative courts have different positions in disputes. In such situations, in order to avoid negative penal and fiscal consequences, the problem may be solved by an individual tax ruling. How to get it?
What is an individual interpretation?
An individual interpretation is a special letter, issued on behalf of the Minister of Finance by the tax authority at the taxpayer's request. It takes into account all aspects of the case, paying attention both to the legal provisions and the specific situation of the taxpayer. If the interpretation is issued in favor of the applicant, the tax authority does not have to provide its justification. If the authority's assessment is negative, then the individual interpretation should be justified.
Individual interpretations are issued only at the taxpayer's request.
An individual tax interpretation protects an entrepreneur regardless of whether its provisions would be challenged by other authorities. The exception is the situation when the issued interpretation is changed ex officio by the minister competent for public finances. This may take place if he finds that it is incorrect, in particular taking into account the case law of the courts, the Constitutional Court or the European Court of Justice. The notification on the changed individual interpretation shall be delivered to the entity to which the interpretation was issued in a given case. The interpretation may be appealed against to the Provincial Administrative Court.
Each taxpayer, natural person, legal person, payer, as well as persons without a place of residence or registered office in Poland who have doubts as to the application of tax regulations, may apply to the tax office for an individual tax interpretation.
Application for an individual interpretation - ORD-IN
In order to obtain an individual interpretation, an ORD-IN application is submitted. The applicant's task is to accurately describe the events that are to be the subject of the interpretation and his own opinion on the solution, as this is what the tax authority will refer to.
The individual interpretation is payable, and its cost is PLN 40 for each actual state and future event presented in the application. This amount should be paid to the appropriate bank account of the authority to which the application for an individual interpretation is addressed, within 7 days from the date of submitting the application.
If several separate facts or future events are presented in one ORD-IN application, a fee is charged for each of them. Therefore, the product of PLN 40 and the number of presented facts or future events in the application for interpretation should be paid to the bank account of the tax office.
The individual interpretation is issued without undue delay, but not later than within 3 months from the date of receipt of the ORD-IN request. The deadlines for performing specific activities, e.g. requests for supplementation, are not included in this deadline.