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Poland: Tax relief measures included in new law (COVID-19)

Poland: Tax relief measures included in new law

Legislation published on 23 June 2020 addresses subsidizing interest on bank loans granted to entities affected by the coronavirus (COVID-19) pandemic. It also concerns simplified arrangement approval proceedings due to COVID-19—this is commonly referred to as “Anti-Crisis Shield 4.0.”

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The tax-related provisions in the legislation include:

  • An exemption from tax on revenues from commercial buildings for the period from 1 March 2020 to 31 December 2020
  • An extension of deadline for submitting transfer pricing information returns
  • Application of bad-debt relief
  • Extension of the suspension of deadlines for reporting domestic tax arrangements
  • The ability to deduct certain penalties and damages related to contracts
  • The ability to use a tax residence certificate that does not include a validity date and for which the 12-month period expires during the pandemic
  • The ability to deduct in-kind donations such as laptops and tablets made to certain entities (such as educational establishments) during the period from 1 January 2020 to 30 September 2020
  • An extension of the deadline for paying the annual perpetual usufruct fee for 2020 to 31 January 2021

The new law also sets out the rules for subsidizing the interest on bank loans granted to companies affected by the COVID-19 pandemic. The loan interest subsidy amounts will not be treated as revenue and not taxable to the company.

The legislation also includes simplified restructuring procedures, allowing companies to rebuild their financial stability without the need to apply to a court in this regard. The initiation of restructuring proceedings by a company will suspend creditor actions for a maximum of four months and for the time the court approves the arrangements made with creditors. During this period, it will not be possible for the creditors to terminate contracts that are deemed material to the company's business, including real estate leases or rental agreements.


Read a June 2020 report [PDF 243 KB] prepared by the KPMG member firm in Poland

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