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COVID-19-related tax solutions

On 19 March 2020 the Ministry of Finance posted on its website an announcement on new tax solutions aimed at minimising adverse economic effects being a result of the outbreak of the coronavirus pandemic (the so-called anti-crisis shield program).

The proposed remedial measures are intended to temporarily improve the financial liquidity of taxable persons and allow to postpone deadlines for some reporting obligations. The draft act introducing the abovementioned tax solutions is likely to be published in the coming days. Please see below a list of crucial solutions.

Income tax calculation

  1. Possibility to retroactively offset tax losses in PIT and CIT of up to PLN 5 m (ca. EUR 1.1 m) incurred in 2020 by submitting an amended 2019 tax return, provided that the revenue generated in 2020 falls below 50% of the revenue generated in the previous year.
  2. No obligation for debtors to apply regulations on ”bad debts” in CIT and PIT when calculating advances for income tax, provided that the revenue generated in 2020 falls by at least 50% when compared to the revenue generated in the same period in 2019 (this exemption may be also applied by taxable persons who failed to generate income in the previous year, yet they suffer adverse economic effects related to the outbreak of the coronavirus pandemic).
  3. Possibility for the so-called “small taxpayers” to calculate monthly advances on current income for the period from March 2020 to December 2020 instead of applying simplified advances.
  4. Introducing a PIT and CIT deduction on donations (monetary and in-kind) granted for purposes related to preventing and counteracting  the spreading of the coronavirus to entities providing medical healthcare, including sanitary transportation, as well as donations granted to the Agency for Material Reserve and the Central Sanitary-Anti-Epidemic Reserve.

Deadlines for the payment of tax liabilities

  1. Deadline extension:
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  • for the payment of minimum tax on commercial real estate for the period from March 2020 to May 2020, until 20 July 2020, if the revenue generated in a given month is lower by at least 50% in comparison to the same period in 2019 (this solution may be also applied by businesses which failed to generate revenue in the previous year, yet they suffer adverse economic effects of the outbreak of the coronavirus pandemic);
  • for remitting withheld income taxes by the withholding agents due for March and April, until 1 June 2020.

Reporting obligations

  1. Postponed until 1 July 2020:
  • obligation to submit new JPK_VAT files with the declaration (JPK_V7M) in case of large enterprises;
  • reports to the Central Register of Beneficial Owners.

Property tax

  1. Possibility for communes to introduce property tax exemptions for businesses suffering adverse economic effects of the outbreak of the coronavirus pandemic.

Other

  1. More flexible approach of the National Revenue Administration in the process of performing tasks in the state of emergency, including the possibility to suspend tax audits, tax proceedings and customs and tax audits until the end of the state of emergency is declared.
  2. Possibility to halt administrative enforcement proceedings related to monetary claims.
  3. Temporary exemption from extension fees due for postponing deadlines for the payment of taxes and tax arrears being budgetary receipts or allowing them to be paid by instalments for as long as the state of emergency is declared.
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Should you have any questions or wish to discuss the topic further, we encourage you to contact our expert, Daniel WIĘCKOWSKI:

e-mail:ekspert@rsmpoland.pl

tel. +48 61 8515 766

fax +48 61 8515 786

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