On 1 April 2020 a package of bills and decrees, so-called “Anti-Crisis Shield”, entered into force. Below we present the most important solutions:
SUPPORT CONCERNING EMPLOYERS, EMPLOYEES AND SOCIAL SECURITY CONTRIBUTIONS (ZUS)
1.Exemption from social security contributions (upon request)
- Exemption for small companies (up to 9 people registered for social security) from social security contributions due for March, April, and May 2020.
- The exemption applies also to the self-employed with revenue up to PLN 15,681 (300% of the average forecasted salary in the national economy in 2020).
- All contributions, i.e. social insurance, health insurance, Labor Fund, Solidarity Fund, and Guaranteed Employment Benefit Fund (FGSP) contributions are subject to the exemption.
2. Contribution to employee‘s remuneration from the funds of FGŚP
The aid is not dependent on the size of the entity. It is granted to a company if there was a decrease in its turnover (decrease in sales of goods or services in terms of quantity or value) by:
- not less than 15%, calculated as the ratio of the total turnover of 2 consecutive months in the period after 01.01.2020 to the total turnover in the corresponding 2 months of the previous year or
- not less than 25%, calculated as the ratio of the total turnover during any given month in the period after 01.01.2020, compared to the turnover of the previous month.
The amount of the subsidy will amount:
a) in case of economic downtime – up to 50% of the minimum wage (maximum amount is PLN 1,533.09 gross) considering the working time or
b) with the reduced working hours by 20%, but not more than to half-time – up to half of the salary, but not more than 40% of the average salary for work) (maximum amount is PLN 2,452.27 gross).
In addition, the subsidy covers social security contributions payable by the employer from the amount of the benefit granted, considering the working time.
3. Contribution to employee‘s remuneration and social insurance contributions by the district head
The employer (micro, small and medium-sized enterprise) may also benefit from co-financing of part of the salaries costs for its employees and the social security contributions due to these salaries in case of the decrease of turnover.
Depending on the level of the turnover decrease, the co-financing can amount from 50% up to 90% of the salary of an employee covered including the social security contributions. The maximum amount of the subsidy cannot exceed, respectively, from 50% to 90% of the minimal salary for work, increased by the social security contributions financed by the employer, with respect to each employee.
Funding may be granted with respect to employees, persons employed under a contract of employment, a contract of mandate, or any other contract for the provision of services to which, in accordance with the Civil Code, the provisions relating to the contract apply.
The subsidy will be granted for a maximum period of 3 months (this period may be extended).
4. Compensation for downtime for persons executing civil law contracts (contracts of mandate, agency, work contracts) and for the self-employed
- The benefit is granted if there has been a downtime as a result of COVID-19.
- The subsidy amounts to as a rule PLN 2,080 (or less in certain cases).
- The condition for obtaining the benefit is, among other, that the income (from business activity or civil law contract respectively) in the month preceding the month of filing the application does not exceed 300% of the average monthly remuneration from the previous quarter announced by the Central Statistical Office on the day of filing the application.
- Additionally, in the case of the self-employed, there has to be a decrease in the income in the month preceding the month of filing the application by at least 15% in relation to the previous month (does not apply to persons who have suspended their business activity).
- The benefit is granted under the condition that the person does not have the title to social security coverage under other engagement titles.
5. Postponement of the obligatory Employee Capital Plans in medium-sized companies until 1 October 2020
6. Extension of working hours
An employer with a decrease in its turnover (by no less than 15% / 25%) as a result of COVID-19 is allowed to:
- limit the uninterrupted daily rest to not less than 8 hours (11 hours so far), and the uninterrupted weekly rest to not less than 32 hours (35 hours so far),
- introduce equivalent working time system (in Polish: “system równoważnego czasu pracy”),
- apply less favorable terms and conditions of employment than those resulting from the employment contracts concluded with those employees.
7. Medical certificates issued with respect to initial, periodic, and follow-up medical examinations which expired after 7 March 2020 shall remain valid.
8. Suspension of the obligations arising from individual acts (e.g. periodic examinations under the Labor Code).
INCOME TAX SUPPORT
- Possibility of compensation of losses incurred in 2020 with income generated in 2019 (when total revenue in 2020 is at least 50% lower than in 2019), up to the amount of PLN 5 million loss.
- Refraining from applying the provisions on so-called bad debts relief to the debtor of the PIT and CIT prepayments (when revenues are lower by at least 50%).
- Postponing the deadline for payment of PIT advances on remuneration paid in March and April 2020 (until 1 June 2020).
- Enabling income deduction on donations made to counteract COVID-19.
- Extension the deadline for submitting CIT-8 for all taxpayers until 31 May 2020, except for taxpayers with income exempt from CIT and public-benefit organizations – until 31 July 2020.
- Extension of the deadline for submission of IFT-2R and ORD-U information until the fifth month after the end of the tax year.
- Extension of the deadline for payment of minimum tax (revenue on fixed assets being buildings) for March-May 2020 until 20 July 2020, provided that:
- the taxpayer has suffered negative economic consequences as a result of adverse COVID-19 effects (as listed in the bill) in the respective month,
- the revenues earned by the taxpayer in a given month are at least 50% lower than in the corresponding month of the previous tax year.
8. Postponing the deadline for submitting TP-R for those entities whose tax year began after 31 December 2018 and ended before 31 December 2019 (i.e. shortened tax year).
- Postponing the obligation to submit a new JPK_VAT file for large companies (return and VAT records) from 1 April to 1 July 2020.
- Postponing the date of entry into force of new VAT rates matrix from 1 April to 1 July 2020.
- Partially postponing the date of entry into force of provisions on Binding Information Rates (WIS) until 1 July 2020.
- Extension of the deadline for submitting a notification of payment to the account not listed on the so-called White List from 3 to 14 days.
- Possibility to issue e-bill (once agreed with the client).
- Deferral of retail sales tax until 1 January 2021.
- The possibility of applying for a deferral of tax payments (including social security contributions), tax arrears, or their redemption.
- Temporary elimination of the extension fee in tax and social security (ZUS) claims.
- Postponing the obligation to submit information to the Central Register of Beneficial Owners (the act on counteracting money laundering) until 13 July 2020.
- Extension of the deadline for reporting tax arrangements (MDR) – deadlines for reporting national tax schemes from 31 March 2020 do not start, and the ones already started are suspended until 30 June 2020.
- Postponement of deadlines for preparing and approving financial statements.
- Extension of the deadline for issuing individual tax interpretation law provisions by another three months.
PROVISIONS RELATING TO REAL ESTATE
- Temporary expiration of obligations under lease, tenancy or other similar agreements that result in the use of commercial space during the period of the ban on operating in commercial facilities with a sales area exceeding 2 000 square meters.
- The deadline for annual payment for 2020 for the perpetual usufruct of land was postponed until the end of June 2020.
- The Commune Council may introduce for a selected group of entrepreneurs an exemption from property tax on land, buildings, and structures connected with conducting business activity.
If you are interested in using the solutions, 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.
Head of Tax
Tax Manager – Tax Adviser
Tax Manager – Tax Adviser
Tax Manager – Tax Adviser
Tax Manager – Attorney-at-law