Sejm adopted the package of laws referred to as „anti-crisis shield”, which aim is to support the entities from the branches most affected by negative economic effects of COVID-19. Five pillars consist of an anti-crisis shield: The Security of the Employees; Financing of the Enterprises; Healthcare; Strengthening the Financial System and Public Investment Program.
The act was signed by the Polish president. Most provisions have already entered into force, with the exception of some of them for which other dates of entry into force are provided.
Below we present you the most important tax solutions that are included in the package:
- Tax loss (in case of PIT taxpayers it will be loss from non-agricultural economic activity), incurred in 2020 in connection with COVID-19, CIT taxpayers or PIT taxpayers will be entitled to deduct from income gained in 2019, on the condition that their revenues will decrease by at least 50% compared to the revenues achieved in 2019. Once, the taxpayers will be able to deduct the loss up to the amount of PLN 5 000 000. The uncredited amount of the loss will be settled by the taxpayers on the existing rules.
- No sanctions for not submitting PIT return and paying tax for 2019 after the statutory deadline (which expires this year on 30th April) - however, no later than May 31th 2020.
- Postponement of a deadline of payment of tax advances on income from broadly understood work (e.g. income from employment relationship, income from service relationship) in the period from March to April 2020 – till June 1st 2020.
- Exemption from income tax of stopping benefits received or left at the taxpayer's disposal in 2020.
- Possibility of a full deduction from income, donations passed on by a taxpayer to counteract COVID-19 for the entities specified in the Act, e.g. entities performing medical activity involving the provision of healthcare or The Material Reserves Agency. Donations will be deductible if they are made in cash or in kind.
- Possibility of extension, at the taxpayer’s request, a payment date of the minimum income tax on commercial real estate for the period March to May 2020 - till 20th July 2020, on the condition that a taxpayer suffered negative consequences due to COVID-19 and whose revenues achieved in the corresponding periods in 2019 will be reduced by at least 50%.
- Exemption from the obligation to apply the provisions on so-called ‘’bad debt’’ in income taxes, towards taxpayers, who should include unpaid obligations while calculating monthly or quarterly advances, in income tax. This exclusion will apply to taxpayers whose revenues achieved in the corresponding periods in 2019 will be reduced by at least 50%.
- Possibility to resign by so-called ‘’small taxpayers’’ who have choosen a simplified method of advance payments in 2020 from payment of such advances in the period from March to December 2020, on the condition that they suffered negative consequences due to COVID-19. Taxpayers, who will decide to use this solution, will then calculate advances on general principles.
- Possibily to deduct eligible costs on R&D activities, which aim is to develop products necessary to counteract COVID-19.
- Postponement of the obligation to submit new JPK_VAT for big enterpreneurs on 1st July 2020 (primarily the regulation was to come into force on 1st April 2020).
- Postponement of the entry into force a new VAT matrix on 1st July 2020 (primarily the regulation was to come into force on 1st April 2020).
- Binding Rates Information issued before 1st July 2020 will bind tax authorities in relation to transactions made after 30th June 2020.
- Extension of the deadline for submission a notification on payment of receivables to a bank account not listed on a so-called ‘’white list” of taxpayers to 14 days (primary the deadline was 3 days).
- For the time of epidemiological threat or epidemic the following proceedings are suspended: tax proceedings and tax controls, customs and fiscal proceedings, fiscal penal proceedings and tax proceedings in administrative courts.
- Extension of the deadline for submission TP-R form till 30th September 2020, for entities whose tax year began on 1st 2020 and ended on 31st 2020.
- Suspension of deadlines resulting from regulations concerning Mandatory Disclosure Rules until the day of cancellation of epidemiological threat or epidemic, no later than 30th June 2020.
- Abolition a prolongation fee and interest on arrears due to payment by installments, tax deferment or tax arrears which are revenues of a state budget (during epidemiological threat or epidemic and 30 days after their cancellation).
- Extension of the deadline for issuing tax rulings about 3 months.
- Postponement of a retail sales tax till 31th December 2020.
- Postponement of the obligation to provide information to the Central Register of Beneficial Owners till 13th July 2020.
Our experts will be happy to provide you with more detailed information on tax settlements and help you to implement the above solutions in your companies.
If you are interested in our support, please do not hesitate to contact us directly.