COVID-19 - Proposals of the Polish Ministry of Finance regarding tax facilitations.

The Polish Ministry of Finance (MF) has announced a proposal regarding contribution to the package of anti-crisis measures, known as the Anti-Crisis Shield for tax facilitations. The package includes, i. e. postponement of some obligations for entrepreneurs. Some of the presented solutions will only apply to those entities that have achieved worse results than in the previous settlement periods. Please find below an overview of the most important possibilities proposed by the MF.

Income taxes

From the employers' point of view, the most important proposal seems to be the extension of deadline for payment of personal income tax advances withheld from the  remuneration for March and April. Payment of these advances is planned to be postponed until 1 June 2020.

For those taxpayers whose income in a given month will drop by at least 50%, in relation to the corresponding period of the previous fiscal year, there is a possibility to extend the deadline for payment of the minimum commercial property tax for the period from March-May 2020 to 20 July 2020. Moreover, the tax can be paid later also by those taxpayers who did not generate any profits in the previous year, but in the above mentioned period they suffer negative economic consequences due to coronavirus.

The proposal of MF provides a possibility of settling the loss suffered in 2020 with income from 2019 (backward settlement of the tax loss). This will apply to persons and entities whose revenue in 2020 will decrease by at least 50% in relation to the revenue generated in 2019. Loss of up to PLN 5 million can be deducted from the income generated in 2019 (the remaining part of the loss can be deducted under the currently applicable rules). Settlement of the loss will be made by adjusting the declaration for 2019.

Furthermore, it is planned to abolish the obligation to exclude from tax costs any amounts that have not been settled on time. This option will apply to those taxpayers whose income achieved in the settlement periods (monthly or quarterly), in relation to the same periods in 2019, will decrease by at least 50%. This exemption will also be applicable to those persons who did not generate any income in the previous year, but in 2020 will suffer negative economic consequences of coronavirus.

According to the proposal of the MF, unfortunately, there are no plans at the moment to extend the deadline for submission of CIT-8 (extension of the deadline for filing CIT-8 will apply only to NGOs).

Small taxpayers will have an option to resign from the simplified tax advances for the period from March to December 2020. In this case, their monthly advance payments for this period will be calculated on the basis of their actual income.

In addition, it is planned to introduce PIT and CIT deductions for donations (in cash or in kind) made to healthcare providers for the purposes of preventing and combating coronavirus infection.

VAT

Moreover, the Government also plans to postpone  the obligation to submit a new JPK_V7M for large entrepreneurs until 1 July 2020.

Other tax facilitations include:


  • Postponing of applications to the Central Register of Real Beneficiaries (CRBR) until 13 July 2020.
  • Introducing an additional deadline until 30 September to provide TP-R information on transfer prices for 2019.
  • Possibility of suspending proceedings conducted against entrepreneurs by the National Revenue Administration (pol. KAS) for the time of the epidemic.
  • Temporary resignation from the extension fee due to payment in installments or postponing the date of payment of taxes and tax arrears – but only those being the income of the State Treasury.
  • Possibility of suspending administrative enforcement proceedings regarding financial claims.

Should you have any doubts or further questions, we remain at your disposal. For more information, please contact our tax advisors Andrzej Malinowski (andrzej.malinowski@bsjp.pl) and Rafał Lewandowski (rafal.lewandowski@bsjp.pl).