On 7 December 2022 the lower house of Polish parliament (Sejm) received a cabinet-initiated bill to amend the Ukrainian Citizens War-Related Assistance Act and certain other acts (“Bill”).

Among various changes, the Bill proposes also certain provisions relating to income taxes. The solutions are intended to make sure that the existing tax preferences related to the pending conflict in Ukraine will continue in effect until 31 December 2023. Some of these preferences are listed below:

  1. A deduction from income is available for the manufacture or purchase cost of property or rights donated as of 24 February 2022 for mitigation of the consequences of the war in Ukraine, provided the donations are made to relevant recipients, including local authorities, the Government Strategic Reserves Agency, and entities carrying out healthcare activities or providing emergency medical services in Poland or Ukraine, unless such cost has earlier been deducted, including via tax depreciation or amortisation (Article 52zf of the PIT Act and Article 38w of the CIT Act).
  2. Gifts and supplies received as of 24 February 2022 for no consideration by taxpayers referred to above for the purpose of mitigation of the consequences of the war in Ukraine do not count as income (Article 52zg of the PIT Act and Article 38x of the CIT Act).
  3. Income tax exemption is available for humanitarian aid received as of 24 February 2022 by Ukrainian citizens who arrived in Poland as a result of the pending war (Article 52zh of the PIT Act).
  4. The requirement of having a centre of vital interests in Poland may be held to be satisfied on the basis of a written statement of the individual concerned (Article 52zj of the PIT Act).

In accordance with the transitional provision in the Bill, to ensure continuity the above changes apply to income earned as of 1 January 2023.

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