Cancellation of the epidemic state – what about taxes?

On May 16, 2022, the Covid epidemic state in Poland was revoked and replaced with a state of epidemic threat. This may affect the taxpayers tax settlements, in particular in the field of PIT, CIT and VAT. Some of the simplifications introduced on the basis of the so-called Anti-crisis Shield will cease to apply from June 1, 2022, while part of them will remain still in force – due to introduction of the state of epidemic threat in Poland.

Please find more details below.

CHANGES EFFECTIVE FROM 1 JUNE 2022

• The suspension of the income tax on buildings, so called the minimum income tax, will apply until the end of May 2022. This way the first tax payment deadline will be July 20, 2022. The conditions for taxation with the minimum income tax remain unchanged.
• No right to deduct donations intended for COVID-19 purposes to relevant institutions.
• No possibility to make one-off write-offs of fixed assets used for the production of goods related to counteracting COVID-19.

CHANGES EFFECTIVE FROM 1 JANUARY 2023

• No right to apply R&D relief at the moment of calculating the tax advances in respect of eligible costs incurred to develop products necessary to prevent COVID-19.
• No right to apply the reduce rate of 5% (IP Box) at the moment of calculating the tax advances on income from qualified IP rights used to prevent COVID-19.
• No possibility to apply higher limits of exemptions provided for under the PIT Act, i.e., for certain benefits paid to employees.

SIMPLIFICATIONS STILL IN FORCE

Despite the cancellation of the epidemic state, the state of epidemic threat will be in force in Poland. As a result, some of the simplifications introduced by Anti-crisis Shield will be still applicable, in particular:

• Extended deadline (from 7 to 14 days) for filing the notification of the payment made to the bank account not included in the White List register.
• The right to use the tax residence certificate issued for 2019 / 2020, provided that the taxpayer receives statement confirming that the data has not been changed – for a period of up to two months after the end of the state of epidemic threat.
• Suspension of deadlines for reporting “domestic” tax arrangements – until the 30^th day after the end of the state of epidemic threat.

If you have any questions, please contact our tax experts: