Polish government published on 26 March the so-called “anti-crisis shield” – a package of draft bills. Today (27 March) the Parliament is to vote on the projects. The proposed changes are aimed at protecting the labor market and improving companies’ cash flow. The size of the company and the type of industry will decide on the scope of the support.
Below we present the most important tax solutions:
- postponing the obligation to submit a new JPK_VAT file for large companies (declaration and 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 until 1 July 2020;
- extension of the deadline for submitting a notification of payment to the unregistered account (the so-called White List) from 3 to 14 days;
Income taxes changes and the Social Insurance Institution (ZUS)
- postponing the deadline for payment of PIT advances on remuneration paid in March and April 2020 (until 1 June 2020);
- 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;
- possibility for so-called small taxpayers to waive the contributions in the period March – December 2020;
- 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 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 information to the Central Register of Beneficial Owners (the act on counteracting money laundering) until 13 July 2020;
- enabling income deduction on donations made to counteract COVID-19;
- state financing of social security contributions for 3 months for:
- for micro-enterprises that employ up to 9 employees, if they were declared as contribution remitter before 29 February 2020;
- for self-employed workers, if they were active before 1 February 2020,
– if their revenues fell at least by 50%;
- temporary elimination of the extension fee in tax and social security (ZUS) claims:
- for tax claims – refraining from charging the extension fee for spreading in time or postponing the date of tax payments and tax arrears determined as the state budget income from contributions due for the period from 1 January 2020, based on the application submitted during the period of epidemic threat/epidemic status or within 30 days after its cancellation,
- for ZUS claims – entrepreneurs who have difficulties in paying social security contributions due for the period from January 2020, in the event of concluding an agreement to postpone the payment of contributions or an agreement on the payment of installments, will be exempted from paying extension fee.
Changes in other taxes
- exemption from the tax on civil law transactions (PCC) of the loan agreements concluded before 31 August 2020;
- real estate tax – enabling municipality:
- implementing a real estate tax exemption (for part of 2020) and
- extension of the deadlines for payment of real estate tax installments, payable in April, May and June 2020, no longer than 30 September 2020,
for those groups of entrepreneurs whose cash flow has deteriorated;
- postponement of the retail tax until 1 January 2021.
- 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;
- extension of the deadline for issuing individual tax interpretations not issued before the entry into force of the Act on COVID-19 by even up to 6 months;
- a 90% reduction of rent for the period when the tenant does not carry out its business activity in a commercial facility with a sales area of over 2000 square meters during an emergency or epidemic unless the contract provides the more favorable solution for the tenant;
- postponement of the obligatory Employee Capital Plans in medium-sized companies until 1 October 2020;
- support of transport companies by the Industrial Development Agency (PFR) in refinancing lease contracts;
- de minimis guarantees granted by the National Economy Bank (BGK) and BGK additional grants to interest;
- BGK, Polish Development Fund (PFR) and Export Credit Insurance Corporation (KUKE) liquidity funds, including the possibility of obtaining – by medium and large companies – from the PFR capital increase or financing in the form of bonds – with a total value of PLN 6 billion;
- monthly benefit up to about 2,000 PLN – for self-employed and those employed under performance contracts or specific-task contracts;
- co-financing of employee remuneration – up to 40% of the average monthly salary – and more flexible working hours – for companies in trouble;
- protecting consumers from excessive price increases and other unfair trading practices.
The Ministry of Finance also plans to:
- extend 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;
- defer the obligation imposed on private and public sector entities and non-governmental organizations of financial statements (FS) preparation and FS audits made by audit firms.
How can ASB assist you?
Please contact us should you wish to know how new regulations may be used by your business most effectively:
Head of Tax
Tax Manager – Tax Adviser