On 19 March 2020, the Polish Ministry of Finance presented specific tax solutions as part of the so-called “anti-crisis shield”. However, although they have not yet been presented in the form of a bill, taxpayers know what to expect. The presented solutions cover income taxes (Personal Income Tax and Corporate Income Tax), as well as other taxes (VAT, real estate tax).
Income taxes
Tax losses incurred in 2020
As indicated in the first part of the note on 18 March 2020, CIT and PIT taxpayers will be entitled to utilise tax losses incurred in 2020 in their PIT/CIT settlements for 2019. To do this, taxpayers will have to correct their tax return for 2019. This solution will be possible for those taxpayers whose revenue in 2020 will have fallen by at least 50% as compared to the revenue earned in 2019. The limit for the loss utilisation will be up to PLN 5 million.
Minimal tax on real estate
Taxpayers obliged to pay the so-called “minimal tax on real estate” will have an extended deadline to pay the tax for March-May 2020 until 20 July 2020. This option will be available to taxpayers whose revenues in a given month are at least 50% lower than in the corresponding period of the previous tax year. This option will be also available to those taxpayers who did not earn any revenue in the previous tax year, but will have suffered adverse economic consequences during March - May 2020.
Bad debt relief
Taxpayers (debtors) who would be obliged to increase their revenue under the newly introduced bad debt relief provisions will not have to do this. The exemption from this obligation will be available to taxpayers whose revenues earned in the settlement periods in 2020 in relation to the same periods in 2019 will be decreased by at least 50%. This option will also be available to those taxpayers, who did not earn any revenue in the previous tax year, but will have suffered adverse economic consequences in 2020.
CIT advances
CIT small taxpayers (i.e. with a revenue not higher than PLN 2M gross per year) will be entitled to use a more favourable method of calculating CIT advances during March-December 2020. In practice, this means that taxpayers will be entitled to calculate CIT advances based on the income actually earned in a given month.
Annual CIT return
The Ministry has announced that only non-governmental organisations will have an extended deadline for filing the 2019 CIT return. No details were disclosed as regards other taxpayers.
Donations
Taxpayers who made donations (in cash or in kind) for the purposes of preventing and combating coronavirus infection will be able to deduct the paid amounts in their tax returns. The Ministry didnot indicate whether donations will be deducted from the tax or the tax base. The deduction limit was not given.
PIT advances paid by employers for employees/civil law contractors
Employers (tax remitters) will have an extended deadline for the payment of PIT advances for March and April 2020. Advances will have to be paid by 1 June 2020. Surprisingly, contrary to the previous media news, the Ministry did not indicate that the deadline for filing annual PIT returns will be extended.
VAT
Postponed deadline for implementation of the new SAFT –Standard Audit File for Tax
The new VAT regulations concerning SAFT –Standard Audit File for Tax (jednolity plik kontrolny JPK in Polish) will come into force on 1 July 2020.
Other solutions
- No additional cost will be imposed on taxpayers who have deferred obligation to pay tax orpay taxes in instalments.
- Local Polish authorities will be entitled to exempt entrepreneurs from the real estate tax (RET) if they suffer adverse economic consequences connected with the coronavirus.
- Tax authorities will be entitled to suspend tax audits/proceedings for the duration of the epidemic.
- The tax authorities will be able to suspend the enforcement proceedings.
- The obligation to file a notification with the Register of Beneficial Owners will be postponed until 13 July 2020.
- Each taxpayer may notify the Ministry via the website called “Taxpayer’s Voice” about other ideas/solutions which may be necessary to fight the impact of coronavirus on the economy.
We will keep you informed about further developments. If you find the above useful and need more help in this area, please contact:
