On 26 October a bill was submitted to counter the effects of the COVID-19 pandemic crisis in the gastronomy, entertainment, fitness, and retail sectors.
The new anti-crisis shield is to cover around 200 000 companies and 372 000 employees. The estimated cost to the state budget is to be over PLN 1.8 billion. The main elements of the offered support are the exemption from social security contributions for November and the possibility of obtaining a stoppage refinancing for entrepreneurs. Additionally, it is planned to grant one-off non-refundable subsidies, as well as to postpone PIT payments.
Exemption from social security contributions
The possibility of not paying social security contributions was allowed in a situation where revenue in November 2020 is at least 40% lower than in the same period in 2019. The aid is directed for entrepreneurs acting in industries as i.a. discos, sports facilities, physiotherapists, restaurants, and clothing shops – 25 Polish Classification of Activity (PKD codes).
Stoppage refinancing
Entrepreneurs will be also entitled to one-off stoppage refinancing if revenues decrease by 40% – financial data from October or November 2020 is to be examined in comparison with the corresponding period of the preceding year. The entitled group of entrepreneurs will cover 20 PKD codes (among the excluded activities are i.a. orchestras, actors, stage designers, so-called escape rooms, or recreational parks).
Non-refundable subsidy
For small and micro-entrepreneurs the possibility of receiving 5 000 PLN of non-refundable subsidies as direct financial support is planned. The only condition is to have a 40% drop in revenue in October or November, just as for the stoppage refinancing.
The conditions for obtaining aid indicated above assume the exclusion from the above schemes of companies established as of 1 December 2019 (due to their lack of activity in November 2019). This problem was raised during the first reading of the draft – it is possible that the support will ultimately cover also younger enterprises. The same applies to the inclusion of activities related to a film screening on the list of privileged PKD codes.
What is important is that the proposed support is to be directed only at entrepreneurs. It is possible, however, that in the course of further work on the project aid will be extended to entities such as kindergartens, foundations, or associations.
Another possible support announced by the Minister of Finance may be the postponement by six months of PIT advance payments due for 3 months from November 2020 to January 2021.
Source: Draft bill of 26 October 2020 amending the Act on special solutions related to the prevention and combating of COVID-19, other infectious diseases, and crisis situations caused by them, case No. 704
Łukasz Bączyk
Head of Tax, Board Member
E: lbaczyk@asbgroup.eu
Marta Skrodzka
Tax Manager – Tax Adviser
E: mskrodzka@asbgroup.eu
Aleksandra Kryzińska
Senior Tax Consultant
E: akryzinska@asbgroup.eu
