Mar252020

Poland: Covid – 19 – tax shield package March 23, 2020 – important information for the real estate sector

Dear Sirs,

Below we present the most important proposals of the Ministry of Finance included in the anti-crisis shield package. The draft bill was published on March 21, 2020 and may be subject to changes. We will keep you informed on the update.

The proposed draft amendments are primarily aimed at supporting entrepreneurs whose revenues as a result of a pandemic have significantly decreased and their financial liquidity has been threatened.

RELIEF AND TAX EXEMPTIONS

  1. The possibility of retroactive deduction of tax loss incurred in 2020 on income earned in 2019 (for PIT and CIT taxpayers).
  2. The exemption of the so-called bad debts relief regulations with regard to PIT and CIT advances paid by the debtor.
  3. The exemption from the tax on civil law transactions (PCC) on loan agreements concluded till 31 August 2020.
  4. Waiving self-employed, contractors and micro-enterprises up to 9 employees social security contributions for 3 months if certain conditions are met.
  5. The possibility to deduct donations made in relation to coronavirus pandemic.
  6. The introduction of the tax exemption on income earned on the anti-crisis package support.
  7. Allowing municipalities to introduce the property tax exemption and extend the deadlines for payment of property tax installments.
  8. The cancellation of prolongation fee on the installment payment or deferral of the deadline to pay tax due and social security contributions.

DEADLINES EXTENSION

  1. The extension of the deadline for tax remitters to pay payroll tax advances collected in March and April (until June 1, 2020).
  2. Postponing the final term to pay the minimum tax on real estate for the months March-May 2020 (to July 20 2020)
  3. Changes in the deadlines for reporting of other than cross-border tax schemes (MDR) – deadlines do not start and the one that has started are suspended (until July 1, 2020).
  4. The extension of the deadline for submitting TP-R till 30 September 2020.
  5. Extending the deadline for submitting a notification of payment to an account not included on the white list of VAT payers up to 14 days.
  6. Postponing the obligation to submit a new SAF-T from April 1 to July 1, 2020.
  7.  Postponing the obligation to report to the Central Register of Beneficial Owners until 13 July 2020.

TAX AND COURT PROCEEDINGS

  1. The extension of the deadline for issuing tax ruling by 3 months (possible further extension up to 3 months) / possibly (as proposed by the Ministry of Justice): complete suspension of the deadline for issuing tax ruling.
  2. The possibility to suspend tax audits, tax proceedings, customs and tax audits as well as suspend administrative enforcement proceedings of pecuniary claims during the epidemic crisis.

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If you would be interested in implementation of solutions proposed as part of the anti-crisis shield, please contact Justyna Bauta-Szostak (justyna.bauta-szostak@mddp.pl) or your tax advisor at MDDP – we will help you to determine which changes and to what extent will be applicable in your company.

In MDDP, we have also established a CORONAVIRUS CRISIS TEAM our experts assist in all areas of activity that may be affected by the coronavirus epidemic. We monitor the legislative work related to the coronavirus on an ongoing basis and follow the recommendations of the relevant authorities that may affect the business situation.

Questions and doubts should be addressed to: covid19@mddp.pl or directly to persons responsible for specific issues:

TAXES Bartosz Głowacki   phone:+48 603 980 382, e-mail:bartosz.glowacki@mddp.pl
LABOR LAW Wiktoria Cieślikowska   phone:+48 22 376 52 97, e-mail:wiktoria.cieslikowska@mddp.pl
PERSONAL DATA Daniel Michalski   phone:+48 22 376 52 02, e-mail:daniel.michalski@mddp.pl
PAYMENT BACKLOGS, BANKRUPTCY AND RESTRUCTURING Bartłomiej Sadura   phone:+48 737 883 705, e-mail:bartlomiej.sadura@mddp.pl
CONTRACTS Aleksandra Grabarska   phone:+48 22 376 52 20, e-mail:aleksandra.grabarska@mddp.pl
CORPORATE FINANCE Łukasz Zabłocki   phone:+48 22 320 48 52, e-mail:lukasz.zablocki@mddp.pl
FINANCIAL STATEMENTS Magdalena Michniewicz   phone:+48 502 413 975, e-mail:magdalena.michniewicz@mddp-outsourcing.pl
BOOKKEEPING Agnieszka Tyczyńska-Osińska   phone:+48 504 120 116, e-mail:agnieszka.tyczynska-osinska@mddp-outsourcing.pl
PAYROLL Barbara Kochańska-Mierzejewska   phone:+48 516 281 916, e-mail:barbara.kochanska-mierzejewska@mddp-outsourcing.pl