Anti-crisis Shield 2.0 – complementary package

The so-called Anti-Crisis Shield 2.0 extending provisions of the earlier Anti-crisis shield (referred to on our blog) entered into force on 18 April 2020. Below we present the most important implemented changes:

Refinancing under the so-called downtime

• The possibility of granting the stoppage benefit – to be granted, the entrepreneur has to show that the financial situation of his company has not improved since the earlier refinancing. Refinancing under so-called downtime can be granted no more than 3 times.
• Entrepreneurs can apply for the stoppage benefit regardless of the amount of income received (excluding entrepreneurs employed under civil law contracts).

The stoppage benefit may be granted to persons conducting business activity – as a sole traders, employing employees as well as persons employed under civil law contracts, including self-employed.

Release from social security contributions for March, April and May 2020

Who may benefit  from the exemption from social security contributions:

• Companies that have reported from 10 to 49 insured to social security institution;
• Contributions payers who are social cooperatives, regardless of the number of employees, if they were payers before 1 April 2020;
• Entrepreneurs who started their business activity before 1 April 2020.

The release for March and May 2020 can be granted even if the contributions have been already paid.

Loans for micro-entrepreneurs

Anti-crisis Shield 2.0 includes a larger group of micro-entrepreneurs entitled to receive a loan up to PLN 5,000, in particular:

• The loan will be available for natural persons who do not employ and have never employed employees;
• The condition that the micro-entrepreneur must maintain the workforce in relation to the workforce as of 29 February 2020 does not apply.

Release from the default interest for payments for the period from January 2020

Contributions payers who have difficulties with payments of social security contributions on a timely manner as a result of COVID-19 will be able to benefit from release from default interest on contributions for the period from January 2020 r. This relief will apply to all contributions payers – the size of the company is irrelevant.

The relief will be available where:

• the contributions have already been paid, but after the deadline and the interest accrued;
• the contributions have not yet been paid and the payment deadline has already passed.

Changes in the transfer pricing area

The deadlines for certain entities to submit local transfer pricing documentation (“local file”) and group transfer pricing documentation (“master file”) were extended:

• extension until 30 September 2020 of the deadline for the preparation of local transfer pricing documentation and the deadline for submitting the settlement at market prices statement for entities whose tax year or financial year started after 31 December 2018 and ended before 31 December 2019;
• extension of the deadline for the entities referred to above until 31 December 2020 to attach the group transfer pricing documentation (master file) to the local documentation.

R&D and IP BOX relief

• Earlier inclusion of eligible costs in corporate tax settlements (R&D relief)

Eligible costs incurred in 2020 for research and development activities, the purpose of which is to develop products necessary to counteract COVID-19, the taxpayer may deduct from the income on which the tax advance is calculated. Therefore, it is possible to benefit from the relief earlier (with payments of advances), and not only in the annual tax return.

• Earlier application of 5% income tax rate (IP BOX)

Taxpayers achieving qualified income from qualified intellectual property rights in 2020 used to counteract COVID-19 may apply a 5% income tax rate already in income tax advances – they do not have to wait until annual CIT or PIT reconciliation.

These rules apply also if a taxpayer does not have a qualified intellectual property right or an expectation to obtain such a right yet, provided that he has notified or applied for such property right to the competent authority within 6 months from the end of the month for which 5% tax rate was applied upon tax advance calculation.

If you are interested in using solutions implemented by Anti-crisis Shield, please contact us.

We will analyze the options that are available for you, indicate the detailed conditions that you need to meet in order to take advantage of the solution and help you to fill in and submit respective applications.