Poland: Covid-19 - tax shield package proposal

During the press conference on 18 March 2020, Polish Government proposed an anti-crisis package with the following headlines:

• payment of social security will be deferred (at present relevant individual application is required to postpone the payments for 3 months applicable to selected entities),
• installment or deferral of tax payments without additional charges (standard one is 4% p.a.),
• CIT payers from selected industries affected by COVID – 19 , whose turnover fell by 50%, will be allowed to include the loss for 2020 in the settlement for 2019. The maximum loss deduction cannot exceed PLN 5 million (800k Euro),
• deferral new SAF-T from 1 April to 1 July 2020,
• deferral of reporting to  the Central Register of Beneficial Owners from 13 April 2020 to July 2020,
• pausing social security audits.

Entrepreneurs and tax advisers also requested for among others:

• postponing the dates of advance payments for income taxes,
• deferral of annual settlement in income tax,
• deferral or payment in installments of taxes without interest,
• abolition of minimum tax in real estate industry,
• cash recognition of income for tax purposes,
• abolition of flat CIT prepayments if exceeding real liability,
• pausing of all tax and social security audits as well as extension of formal deadlines.

The draft bill has not yet been published.

Regardless of the above, you are entitled to ask for the:

• deferment of the tax the payment or payment in installments,
• deferment or payment in instalments of the tax arrears, or
• cancellation of the tax arrears (all or in part), this includes default interest and a pro-long-up fee,
• deferment of the social security premiums for 3 months.

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If interested in the above information and their impact on your business, please contact Bartosz Głowacki, bartosz.glowacki@mddp.pl

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: