It is 18 January 2021. We invite you to the next episode of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.
In today's episode:
- Real estate companies must be ready for submitting reports on payment dates in commercial transactions
- Financial Shield 2.0 for micro, small and medium-sized enterprises launched by the Polish Development Fund
- Limitation of the abolition relief to start with PIT return for 2021
- Draft decree on supporting businesses affected by the COVID-19 pandemic
- ZUS explanations regarding the obligation to report specific task contracts
- New CIT-15J form
- Expiry of residence certificates
Real estate companies must be ready for submitting reports on payment dates in commercial transactions
On 1 January 2020, new provisions extending the group of entities required to submit annual reports on the applicable payment deadlines in commercial transactions entered into force. At present, there are no interim provisions that would explicitly indicate the period for which the first report from real estate companies is due. Nevertheless, according to the Department of Economic Regulation Improvement at the Ministry of Entrepreneurship and Technology, real estate companies must fulfil their reporting duty also for 2020 (with the reporting deadline falling on 1 February 2021, given that 31 January is a Sunday). The authority's opinion should not be perceived as the official line of interpretation, nevertheless real estate companies should consider preparing appropriate reports for 2020.
A broader review of the amendments can be found in KPMG's Tax Alert entitled "Obligation to submit a report on payment dates in commercial transactions by real estate companies".
Financial Shield 2.0 for micro, small and medium-sized enterprises launched by the Polish Development Fund
As of 15 January 2021, micro, small and medium-sized businesses operating in 45 industries, which in the period April-December 2020 or in Q4 2020 recorded a decline in turnover of at least 30% compared to the same period in 2019, may apply for subsidies under the Financial Shield 2.0. The maximum amount of the subsidy is PLN 324k for micro-entities and PLN 3.5m for small and medium-sized enterprises (no more than PLN 72k per employee). Applications can be submitted until February 28.
Limitation of the abolition relief to start with PIT return for 2021
On 12 January 2021, the Ministry of Finance confirmed that under the amendments effective from 1 January 2021, the abolition relief limited to the amount of up to PLN 1,360 shall apply to income earned since the beginning of 2021. Thus, it will be applied to settlements made for 2021 in 2022. In turn, income earned in 2020 is to be settled using the unlimited abolition relief, in accordance with the provisions in force until the end of 2020.
Draft decree on supporting businesses affected by the COVID-19 pandemic.
A draft decree on supporting businesses affected by the COVID-19 pandemic was added to the list of legislative work and policies of the Council of Ministers. It provides for 4 forms of support: subsidy to protect workplaces paid from the Guaranteed Employee Benefits Fund (GEBF) to co-finance employee remuneration; payment of a subsequent downtime benefit; subsidy to cover the running costs of business and exemption from the obligation to pay contributions to social security, health insurance, Labour Fund, Solidarity Fund, Guaranteed Employee Benefits Fund or Bridge Pension Fund, due for the period from 1 December 2020 to 31 January 2021 or only for January 2021. The draft decree is to be adopted by the Council of Ministers in Q1 2021.
ZUS explanations regarding the obligation to report specific task contracts
Polish Social Security Administration published explanations regarding the obligation to report specific task contracts concluded after 1 January 2021, imposed on companies and individuals. Under the new obligation, each contract is subject to notification, even if concluded orally. However, contracts concluded in 2020, even if they are to be performed in 2021, are not subject to notification. There is also no obligation to report contracts concluded with one's own employer or with a person running a business, if the work will be performed as part of this activity. According to the explanations provided, entities, associations, and foundations who are not contribution remitters are also excluded from the new obligation.
New CIT-15J form
On 15 January 2021, a decree of the Minister of Finance came into force. It provides templates of forms used to submit information on income tax payers who have, directly or through non-taxpayers, the right to participate in the profit of a general partnership (CIT-15J) and of the attachment to the CIT-15J form by way of which data on income tax payers who earn income from a general partnership must be disclosed (CIT / JW). The reporting obligation rests with general partnerships having their seat or place of management in Poland, partnered not only by natural persons. The body competent for handling reporting matters is the head of the tax office of the registered seat of the partnership and of each taxpayer earning income from such a partnership. By 31 January 2021, companies have to submit the first report, reflecting the state as at 1 January 2021. This relates to companies operating before 2021, while companies commencing their business activity between 1 and 31 January 2021 must submit the report reflecting the state as at the date of starting their business activity.