This review is actually a summary of actions the government announced and promised to take and legislate in the forthcoming special bill, with complementary information based on communiqués from the government, the Finance Ministry and the Justice Ministry.

We are still waiting for the first draft of the bill to get to know the details of the "Anti-Crisis Shield". 

All links below are to Polish-language content.

 

I. Anti-Crisis Shield – the government

See here for an official communiqué about the measures planned by the government in connection with the pandemic. Anti-Crisis Shield.

Anti-Crisis Shield is based on five pillars:

  • Employee safety – PLN 30 bn
  • Business finance – PLN 74.2 bn
  • Healthcare support – PLN 9.5 bn
  • Financial security – PLN 70.3 bn
  • Public investment – PLN 30 bn

 

Key measures under Anti-Crisis Shield

  • 500,000 microenterprises with up to 9 staff can use loan support of PLN 5,000 per loan (the loan term is generally 12 months and, according to what the officials said at the conference, the loan will not need to be repaid if the employer decides not to dismiss its employees for 6 months).
  • Medium-sized and large enterprises may rely on the PFR Inwestycje fund to obtain equity or debt funding (total amount available: PLN 5 bn).
  • BGK bank will use a special support fund (Fundusz Dopłat) to pay loan interest support for businesses.
  • Transport firms will receive support from Polish industrial development agency ARP to refinance their leases.
  • Parents with children of up to 8 years old under their care will have their carer's allowance entitlements extended (another 2 weeks).
  • Self-employed persons and those working under contracts of mandate or of specific work will receive a benefit of ca. PLN 2,000 (This seems to be a monthly benefit, but this official government website says it is a one-off payment).
  • Firms in distress will receive staff retention support: the government will pay 40% of their wage bill (if the firm has experienced a decline in turnover of 15% over last two months or 20% in last month).
  • It will be possible to waive contractual penalties for delays in completion of public contracts due to the epidemic.
  • 100,000 SMEs will be able to obtain loans with de minimis guarantees for up to PLN 3.5M.
  • Public levy payments (taxes: PIT, CIT, VAT, and social security contributions) can be deferred without fees or interest.
  • PIT annual return to be deferred until end of May.
  • KUKE credit insurance.
  • This year's loss will be fully deductible next year

+ for industries particularly affected by the macroeconomic crisis (e.g. transport, tourism), a company reporting a 50% loss of revenue in 2020 over 2019 will be entitled to credit the loss against its taxable income in 2020 for up to PLN 5 million via 2019 CIT adjustment.

  • New JPK deferred until 1 July 2020.
  • Deferral of payment of utility rates (new measure).
  • Consumer protection.
  • Periodic medical examinations to be valid for longer (new measure).
  • Stay visas and temporary stay permits for foreigners to be extended.
  • Shops and retail locations can be supplied on Sundays (temporary measure).
  • Grace period for loans (repayments deferred by 3 months and by 3 extra months after additional negotiations).
  • Local authorities may defer payments of perpetual usufruct fees.
  • Tourist industry: The deadline to terminate or withdraw from travel contracts to be extended to 180 days. After that time, the customer will receive a refund or a voucher for use within one year from when the travel was scheduled to happen.

 

II. Finance Ministry

Proposals from the Finance Ministry:

Loss carry-back for PIT and CIT

Losses incurred in 2020 can be deducted from 2019 income. To do this, you need to file an adjustment to your 2019 return. This measure is available to those whose 2020 revenue falls by at least 50% comparing to 2019. The deduction is capped at PLN 5M (anything above that can be carried forward).

Payments of commercial property tax for March-May 2020 deferred until 20 July 2020

This measure will be available to taxpayers whose revenue in any of these months falls below 50% of same-month revenue last year. It will also be available to taxpayers who did not generate revenues last year but their business is adversely affected by the coronavirus in these critical months.

Bad debt regulations contained in income tax laws will be disapplied with respect to debtors who would otherwise have to include unpaid debt for income tax calculation purposes

This relief will be available to taxpayers whose revenue in relevant periods of account (monthly or quarterly) decreases by at least 50% comparing to the same periods in 2019. It will also be available to taxpayers who did not generate revenues last year but their business is adversely affected by the coronavirus in 2020.

Taxpayers may opt out of the simplified advance payment scheme in 2020 and shift to the monthly advance tax scheme (income taxes)

This measure will be available to "small taxpayers". If they choose to opt out of the simplified scheme, they will be charging regular monthly advance tax on their current incomes between March and December 2020.

CIT-8 filing deferred for non-governmental organisations.

Gifts (of money or property) will be deductible for PIT and CIT purposes if given for the purpose of coronavirus prevention or combating to healthcare service providers, including medical transport, or to Materiel Reserves Agency or Central Sanitary and Epidemiological Reserves.

Remitters to have more time to pay wage tax withheld for March and April.

These payments are expected to be deferred until 1 June 2020.

Deferral fee otherwise payable where the payment of central government's levies or taxes (including back taxes) is deferred or spread over time will be temporarily waived until the end of the epidemic emergency.

The duty to file new JPK_VAT with returns to be deferred for large enterprises until 1 July 2020.

Filings to Central Register of Beneficial Owners (CRBR) deferred until 13 July 2020.

 

Local authorities allowed to enact real estate tax exemptions for businesses adversely affected by the coronavirus.

National Revenue Administration to be more flexible in time of crisis. Tax or customs inspections as well as tax proceedings may be suspended for the duration of the epidemic emergency.

 

More flexibility in financial management of the public finance sector, including local authorities, special-purpose funds, executive agencies and the central government's budget, to ensure quick and seamless appropriations for COVID-19 emergency purposes.

The measures involved include reducing the number of procedures and compliance burdens currently in force. Examples: restrictions on financial plan changes to be lifted, public funding to be available for full value of projects, longer time to account for grants/subsidies, simplified procedures to change the purpose of special reserves or create special reserves out of frozen funds.

Option to withhold administrative enforcement of money due to the government.

 

III. Justice Ministry

Proposals from the Justice Ministry:

The running of the following periods will be suspended (or, if the periods have not started to run yet, they will not commence):

such deadlines under civil law which must be complied with in order to obtain legal remedies in court;

time limits for prosecution of offences or application of punishment (applies to criminal offences, fiscal offences and misdemeanours);

procedural and judicial periods in courts, including administrative courts, enforcement proceedings, criminal proceedings, fiscal proceedings, misdemeanour cases, administrative cases, administrative enforcement cases, and any other procedural periods applicable in proceedings governed by statutory law.

 

IV. Other

Additional measures announced during press conference but not mentioned in the communiqué:

  • BDO Waste Database registration deferred until end of year for SMEs;
  • ZUS inspections put on hold;
  • working capital loans to be renewed without credit checks;
  • new forms of taxation, such as retail sales tax, to be deferred until year-end.

 

News bulletin from Centre for Strategic Analysis

 

https://www.gov.pl/web/koronawirus/tarcza-antykryzysowa-ma-ochronic-firmy-i-pracownikow-przed-skutkami-epidemii-koronawirusa
https://www.premier.gov.pl/wydarzenia/aktualnosci/premier-tarcza-antykryzysowa-pomoze-przedsiebiorcom-i-pracownikom.html

https://subiektywnieofinansach.pl/pakiet-antykryzysowy-czyli-rzad-ujawnil-jak-chce-ratowac-polskie-firmy-przed-katastrofa-niby-wypas-ale-jesli-zajrzymy-pod-kolderke/?fbclid=IwAR2pralCAxP74hRvhj_ase0V8KG_yJRK_LmdeHaMws4f9i9VJyj6zuoAArI

https://www.gov.pl/web/sprawiedliwosc/nadzwyczajne-przepisy-ustawowe-dla-wymiaru-sprawiedliwosci

 

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

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