close
Share with your friends

Poland – COVID-19: Relief for Social Security Charges, Charitable Donations, Arrears Interest

Poland–SS Charge, Donation, & Arrears Interest Relief

In Poland, new legislation updates the so-called Anti-Crisis Shield rules and provides additional relief to business and individual taxpayers. For instance, a measure extends to the group of entities that are eligible relief on social security contributions due for the period from 1 March 2020 to 31 May 2020. Also, an amendment was adopted according to which the financing granted under the Anti-Crisis Shield will not constitute revenues within the meaning of the Corporate Income Tax Act and Personal Income Tax Act. Another measure concerns donating 1 percent of tax to charitable organisations for certain PIT annual returns.

1000

CONTACTS

Related content

flash-alert-2020-212

In light of the coronavirus crisis, Poland’s government has introduced new measures that provide special concessions regarding social security, charitable donations, and late payment interest.

On 17 April 2020, the “Act on Special Support Measures Due to the Spread of SARS-CoV-2” (hereinafter “the Act”) was published in the country’s “Journal of Laws of the Republic of Poland” (Dziennik Ustaw).1  The Act updates the “Anti-Crisis Shield” provisions and extends the “Act on the System of Development Institutions with New Instruments Forming the Financial Shield.”  (For prior coverage of the Anti-Crisis Shield, see GMS Flash Alert 2020-144, 2 April 2020.)

For the full report, including measures affecting companies, see “The Act Amending the Anti-Crisis Shield Entered into Force,” in Tax Alert (April 2020), a publication of the KPMG International member firm in Poland.

WHY THIS MATTERS

The amendments to the Anti-Crisis Shield legislation should help mitigate the economic and financial effects felt by employers and other taxpayers (individuals as well as businesses) in Poland due to the coronavirus and COVID-19 crisis and to bring relief to such taxpayers as they come to grips with the changed situation in their daily lives, financial security, and business operations arising from the restrictions implemented to address the pandemic.

The relief (full or partial) in respect of social security contributions is expected to be welcome by many eligible employers as it offers them an opportunity to preserve their cash-flow and additional time to organise their social security and tax affairs and meet their compliance obligations in this difficult period.

Changes Related to Social Security Contributions

The Act extends to the group of entities eligible for support relief on social security contributions due for the period from 1 March 2020 to 31 May 2020.

Under the Act, contribution remitters who…

  • before 1 February 2020 and as at 29 February 2020,
  • from 1 February to 29 February and as at 31 March 2020,
  • from 1 March 2020 to 31 March 2020 and as at 30 April 2020,

… reported less than 10 employees, may apply for complete exemption from the obligation to pay social security contributions.

In turn, the remitters who…

  • before 1 February 2020 and as at 29 February 2020,
  • from 1 February to 29 February and as at 31 March 2020,
  • from 1 March 2020 to 31 March 2020 and as at 30 April 2020,

… reported 10 - 49 employees, may apply for a 50-percent exemption on the total amount of unpaid contributions as per the statement submitted for the given month.

Additionally, an amendment to the Act was adopted according to which the financing granted under the Anti-Crisis Shield will not constitute revenues within the meaning of the Corporate Income Tax Act and Personal Income Tax Act.

Importantly, under the introduced amendment, the exemption will also apply to contributions due for March 2020, even if the contributions for March were paid.  The contributions due and paid for March 2020 will then be reimbursable under the terms set out in the Act on the Social Insurance System. 

Donations for “Public Benefit” Organisations

The Act adds details on the rules for donating 1 percent of tax to public benefit organisations for PIT annual returns filed after 30 April 2020.

Under the new regulations, 1 percent of the tax may be transferred also via returns filed by 1 June 2020, or by amendment submitted by 30 June 2020.

Suspending Late-Payment Interest Collection

Note that the Minister of Finance signed a regulation which provides for the suspension of the collection of default interest accrued from 1 May 2020 to 1 June 2020 on personal income tax arrears.  This applies to taxpayers submitting the following types of returns: PIT-36, PIT-36S, PIT-36L, PIT-36LS, PIT 37, PIT-38 and PIT-39.

KPMG NOTE

Taxpayers who need to determine how these measures impact them and whether they are eligible to benefit from the relief provided should contact their qualified tax professionals without delay. 

The tax team with the KPMG International member firm in Poland (see the Contact Us section) can assist with the preparation of appropriate applications for deferred payment or instalment settlements in the area of social contributions, personal income tax returns, and can address your questions about these modified social security and tax compliance obligations.

FOOTNOTE

1  For the text of the bill (in Polish) “Ustawa o szczególnych instrumentach wsparcia w związku z rozprzestrzenianiem się wirusa SARS-CoV-2,” see: http://www.dziennikustaw.gov.pl/DU/2020/695 .

The information contained in this newsletter was submitted by the KPMG International member firm in Poland.

SUBSCRIBE

To subscribe to GMS Flash Alert, fill out the subscription form.

© 2021 KPMG Tax M Michna Sp.K, a Poland limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today