Government and institution measures in response to COVID-19.
Government and institution measures in response to COVID-19.
Return to homepage | Last updated: 30 September, 2020
On 18 March 2020, the government presented economic measures in response to the coronavirus (COVID-19) pandemic, and among those measures are tax-related proposals. The Minister of Finance announced that the tax on retail sales would be deferred until the end of the year.
On 21 March 2020, the government submitted a preliminary Anti-Crisis Shield for consultation and on 25 March 2020, the Office of Competition and Consumer Protection (UOKiK’s) issued Anti-Crisis Shield proposals for consideration.
On 31 March 2020, the Polish Parliament adopted the package of legislative laws related to Anti-Crisis Shield, which was subsequently signed by the President. The majority of new regulations entered into force on 1 April 2020
On 8 April 2020, the Polish Sejm adopted an additional package of legislative laws related to Anti-Crisis Shield. On 17 April 2020 the act was approved by the Polish Sejm and on the same day signed by the President.
Also on 8 April 2020 the Polish Government announced a new Anti-crisis program called the Financial Shield which was subsequently approved by the parliament and signed by the President on 17 April 2020.
On 30 April 2020 the Polish Sejm adopted the Anti-Crisis Shield 3.0., a new support program that extended the application criteria of the antecedent Anti-crisis Shields. On 15 May 2020, the act was signed by President.
On 11 June 2020 the Financial Shield was ultimately approved by EC.
On 24 June 2020, the Act on subsidization of interest on bank loans granted to entities affected by COVID-19 and simplified arrangement approval proceedings due to COVID-19, commonly referred to as Anti-Crisis Shield 4.0, came into force.
On 21 July 2020, EU leaders agreed on a recovery plan (Recovery and Resilience Facility) and a Multiannual Financial Framework for 2021-2027. To benefit from the plan, the Member States must prepare Country / National Recovery Plans. In the beginning of August 2020, the Government launched a call for projects under the National Recovery Plan.
On 11 August 2020, the Act on granting public aid to rescue or restructure entrepreneurs came into force.
On 16 September 2020, the Government announced a new strategy of tax and regulatory simplifications to help attract investments to Poland and to support domestic business in development along with foreign expansion. It was presented under a working name of “Poland: the economic center of Europe”. The details are to be presented at the turn of September and October 2020.
On 17 September 2020, EC presented guidelines for drawing up national plans for reconstruction – as part of European Recovery and Resilience Facility – and the Government started to assess the projects submitted under the National Recovery Plan. The Government assumes that the first draft of the National Recovery Plan will be submitted to EC on 15 October 2020.
On 21 September 2020, European Commission approved the proposed Financial support for tourism industry . Its value is estimated at ca. EUR 193 m.
On 22 September 2020, the President signed the bill commonly referred to as the Anti-Crisis shield for tourism industry or Anti-Crisis Shield 5.0. The provisions of the bill will come into force on 15 October 2020.
Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.
Anti-Crisis Shield proposals issued by the Office of Competition and Consumer Protection (UOKiK’s) on 25 March 2020
Regulations concerning all lease agreements – effective until 30 June 2020
Leasing of property from public resources
Lease of premises owned by the State Treasury or local government units include, among others:
Additionally, the newly adopted Ani-Crisis Shield stipulated:
On 19 June 2020, the Polish Sejm adopted the Anti-Crisis Shield 4.0 - a new support program under the Anti-Crisis Shield
On 22 June, the act was signed by the President.
Below are selected changes adopted under Anti-Crises Shield 4.0 by the Sejm in respect of taxes, social security and other public charges:
Anti-takeover laws
New regulations are adopted to protect Polish companies against hostile takeovers due to the worsened economic circumstances triggered by the COVID-19 epidemic which may translate into particularly low valuation of companies.
The new rules for controlling buyout of companies will remain binding for at least 2 years. Transactions involving the purchase of a large number of shares (i.e. at least 20%) in such companies will be inspected by the President of the Office of Competition and Consumer Protection. The protection will apply to businesses whose revenue on the territory of the Republic of Poland has exceeded EUR 10 million during either of the two fiscal years preceding the buyout.
The regulation covers the businesses which play a key role in maintaining public safety, order and health, such as, for instance:
In addition, the regulation introduces the groundwork for exchanging information on international investments between the EU Member States and the European Commission through a contact point.
Budgetary support for local governments
Security measures for local governments include the following solutions, among others:
Facilitations with regards to tender procedures
Polish government allowed for an easier implementation of tender procedures during the COVID-19 epidemic to improve the situation of public procurement contractors.
New regulations allow to decrease the costs related to the participation of contractors in tender procedures, and to improve their financial liquidity at the stage of executing a public contract.
The following measures were introduced in order to assist in achieving that purpose:
Nearly PLN 0.6 billion from the State Treasury for interest subsidies
Polish government will make it possible for all business owners who suffered from the effects of COVID-19 to receive credit with interest lowered by government subsidies. This solution is introduced in response to the increased demand for working capital credits, resulting from the risk of losing financial liquidity by companies. The total amount allocated to the subsidies amounts to PLN 565 million, which according to the estimates - shall enable to generate credits in the total amount of PLN 32 billion.
The maximum aid for an entrepreneur granted under this instrument, i.e. the subsidy to be obtained, shall not exceed the equivalent of EUR 800 thousand expressed in PLN. The credit contracts may be signed until 31 December 2020.
The subsidies will be paid out for a period of up to 12 months after concluding the subsidised credit agreement.
Credit holidays
New regulations are giving the right to suspend credit payments for a total period of 3 months, without accruing interest or other fees. The new regulations will cover individuals who have lost their employment or their main source of income after 13 March 2020.
The mechanism included in the Act provides for the following possibilities:
Special purpose Act on support for businesses affected by COVID-19 epidemic
One of the primary objectives of the Special purpose Act on support for companies due to COVID-19 epidemic relates to employment protection. The key measures implemented by the State in this respect enters into force from 1 April 2020 and comprise inter alia:
Applications for co-financing of salaries and insurance premiums of employees from the Guaranteed Employee Benefits Fund may be submitted up to 30 days from the date of recalling the state of epidemic threat or state of epidemic.
(In general the deadline passed, however there will be option to received an overpayment return beginning from 20 September 2020)
(Beginning from 20 September there will be options to receive an overpayment return)
On 8 April 2020, the Polish Sejm adopted an additional package of legislative laws related to Anti-Crisis Shield (so-called Shield 2.0) for which on 17 April 2020, Polish Sejm approved additional amendments proposed by the Polish Senate and the act entered into force on the next day.
The key changes related to employment issues comprised:
Anti-Crisis Shield 4.0 -
The regulation pertains solely to the entrepreneurs whose employment costs exceed 30% of the revenue. Lowering working hours or covering an employee by economic idle time shall apply for up to 6 months. That means that such instruments may be used for up to 6 months after the entrepreneur’s revenue started to rise to the previous level. It is crucial to give entrepreneurs time to recover from the losses induced by the crisis while maintaining increased elasticity. However, that state shall not be imposed for longer than 12 months after the state of epidemic or of epidemic threat have been called off.
Suspension may also be introduced by the Minister of Finance in a regulation specifying the territorial scope of suspension, types of proceedings and inspections as well as the period for which suspension occurs. The basis in this case will be the period of validity of the epidemic threat or epidemic status and the effects caused by them.
The suspension period is not included in the dates of proceedings and inspections.
Duty relief
Export restrictions
Customs simplifications
Main sources of information
Key Measures
Sectors/Industries/Areas affected
Resilient society
Resilient country
Resilient economy
Resilient environment
Coronavirus – extraordinary changes in court proceedings and the system of justice
Announcement by the Ministry of Justice on emergency legislation for the system of justice of 19 March 2020.
The Ministry of Justice has presented assumptions for the draft amendments to the Act of 2 March 2020 on extraordinary measures for preventing, counteracting and combating COVID-19, other infectious diseases and emergencies caused by them. The draft amendments and the explanatory memorandum were submitted to the Ministry of Development, which coordinates works related to the amendment of the above-mentioned law.
Extraordinary changes in court proceedings and the system of justice – main assumptions
Non-commencement or suspension of limitation periods:
Announcement of the Ministry of Justice of 12 March 2020 on the operation of courts
List of urgent cases
What does cancellation of hearings mean in practice?
Other procedural effects brought about by the epidemic
Act on granting public aid to rescue or restructure entrepreneurs, commonly referred to as “New Chance Policy”
New strategy of the Polish Government
Anti-Crisis shield for tourism industry
if they obtained income from this activity in the calendar month preceding the month of submitting the application, lower by at least 75% compared to the income obtained in the same calendar month in 2019 and have previously used a downtime benefit (received at least one benefit).
The additional downtime benefit is due in the same amount as the previously paid benefit and can be granted no more than three times.
Main sources of information
Measures to ease the lockdown
Main sources of information
Tax: Katarzyna Nosal-Gorzen – knosal@kpmg.pl / Legal: Dariusz Dobkowski – ddobkowski@kpmg.pl
Restructuring: Alina Woloszyn – awoloszyn@kpmg.pl
Transaction Services: Jacek Kulpinski – jkulpinski@kpmg.pl