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Poland: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 30 September 2020

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.
  • Postponed deadlines – the effective date of new SAF-T-V7M would be postponed to 1 October 2020 (from 1 April 2020), and VAT settlements would be facilitated. 
  • Other changes – include:
    • 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 fee.

Additional Information

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:
    • 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 deteriorated in connection with COVID-19.