The Polish Government presented economic measures in response to the coronavirus (COVID-19) pandemic, which include a range of tax-related proposals. In particular, the measures include:
Supporting business during hard times
- Retroactive settlement of tax loss – the ability to deduct losses incurred in 2020 by filing an amended corporate income tax return, and a tax loss incurred in a given year would be deductible from income earned in five consecutive years.
- The effective date of new SAF-T-V7M would be postponed to 1 July 2020 (from 1 April 2020), and VAT settlements would be facilitated.
- The deadline for companies to enter information into a central register of beneficial ownership would be postponed to 1 July 2020 (from 13 April 2020).
- Postponed deadline for filing individual income tax returns.
- On 21 March 2020, President Andrzej Duda announced a 3-month exemption from social security contributions for self-employed and micro-entrepreneurs whose revenues in March dropped by more 50%, compared to February this year.
Social security contributions
- A special order issued 17 March 2020 provides that entrepreneurs in “a difficult situation” may submit a simplified application for three-month deferment of the payment of social security contributions for February, March, and April 2020 (the deferral would apply for payments that had been due on 10 or 15 March, April, and May).
- This deferral will be subject to discretionary assessment. Moreover, if the entrepreneur is in arrears in the payment of contributions and cannot repay them in one payment, an instalment arrangement may be requested.
- Once this arrangement is signed, the enforcement proceedings will be suspended. Moreover, enforcement of receivables from the period February - April 2020 will be suspended for taxpayers, that at the end of January 2020, were not in arrears with social security contributions.
- facilitations related to split-payment mechanism;
- accelerated VAT refunds;
- possible recognition of expenses as tax deductible costs, due to cancellations of tours by entities operating in the tourism sector;
- relief from prolongation fees.
Preliminary Anti-Crisis Shield submitted for consultation on 21 March 2020
- The bill contains almost 70 considerations in the area of: improving the financial liquidity of enterprises, postponing the implementation of certain obligations, securing jobs and employees’ incomes, as well as solutions enabling and improving the implementation of tasks.
- In particular, the bill contains proposal for statutory changes in the area of taxes; they were slightly amended compared to previous announcements and relate many to the following:
- Postponement of the deadline of payment of PIT advances on remuneration for March and April 2020 to 1 June 2020;
- Extension of the deadline for payment of the minimum commercial property tax for the period March – May 2020 to 20 June;
- Enabling CIT and PIT taxpayers to deduct losses incurred due to COVID-19 in 2020 from operating income generated in 2019;
- Possibility to resign from paying tax advances in a simplified form for so-called small taxpayers;
- Possibility to deduct donations for pandemic relief made in 2020 from taxable income;
- Exemption from income tax on support received as pandemic relief;
- Exemption from the application of the provisions on increasing income being the base for calculating PIT and CIT advances by the debtor in connection with the failure to pay the liability within 90 days from the expiry of the payment;
- Temporary lift of the so-called prolongation fee (charged in the event of deferment or payment in installments of taxes and ZUS contributions, currently 4% per annum).
Several other changes relate to the following:
- Postponement of the deadline for mandatory submission of new SAF-T files, including, among others, the VAT return along with the VAT records;
- Extension of the deadline for submitting information on transfer pricing;
- Extension of the deadlines for fulfilling the obligations arising from the provisions on Mandatory Disclosure Rules (MDR) in relation to tax arrangements other than cross- border tax schemes.
- For a certain period of 2020, the commune council may pass an exemption from property tax on land, buildings and structures used for conducting business activities for groups of entrepreneurs indicated by the commune whose financial situation has deteri.