Umowa o Dzieło at 20%; 22% VAT on building land?; 17% tax on guest rooms

The Finance Ministry wants to abolish the 50% tax break in the so-called cr eative contracts (Umowa o Dzieło). Opponents have locked the idea as they a rgue that the contract is not based on a 50% tax break, but rather a 50% co st of production allowance. Officials had the weekend to counter this and n ow have come up with the idea of cutting the allowance down to 20% (Gazeta Wyborcza, May 16, 19) ... The Finance Ministry wants to impose 22% VAT on b uilding plots. The Polish Property Developers Association strongly opposes the idea and they are being supported by property developers from the EU. (Gazeta Wyborcza, May 19) ... The Finance Ministry has confirmed that the 3% flat rate tax on income from rents from guest houses and holiday chalets wi ll be increased to 17%. Rzeczpospolita, May 17). (Tax News is based on Pric ewaterhouseCoopers Tax Department web service, www.taxonline.pl) R.H.