poland

COVID-19 Countermeasures in Poland

Summary

Area
Title
Description
Labour law
Employment subsidies
Co-financing to the remuneration of employees and persons employed under civil law contracts in SMEs, subsidies for downtime or reduced working hours schemes,
Social security exemption
Small enterprises entitled to full or 50% exemption from social security payments
 Tax
Deadlines extensions
Deadlines for a number of taxes have been extended
Tax deferment
It is possible to defer some taxes due
New obligations suspended
A number of new tax obligations planned to be introduced in the nearest future have been suspended
Financial support
Polish Development Fund
Preferential loans, partly non-refundable in the future for all types of firms available.
ARP Agency's loans
Preferential loans for companies in difficult financial situation with a 15-month grace period in repayment
BGK guarantees
Guarantees up to 80% of a loan

Labour market

  • Co-financing to the remuneration of employees and persons employed under civil law contracts in micro, small and medium-sized enterprises for a period not longer than 3 months, in the event of a decrease in the company's turnover by at least 30% - the co-financing amounts to up to 50% of the total remuneration of individual employees covered by the application for co-financing (not more than 50% of the minimum remuneration for work), however, the amount of co-financing will vary depending on the amount of the decrease in turnover
  • Subsidies to the remuneration of employees covered by the downtime or reduced working hours in the amount of half of the minimum remuneration, in which both the working hours and salaries drop to 50% of the contracted ones, in a situation where the company records a drop in turnover by 15% in the course of 2 consecutive calendar months, falling in the period after 1 January 2020 to the day preceding the date of submission of the application (if the company does not decide to dismiss the employees). The subsidy is not applicable to the remuneration of employees whose remuneration obtained in the month preceding the month in which the application was submitted was higher than 300% of the average monthly remuneration from the previous quarter
  • Additional childcare allowance (not longer than 14 days) for a parent (also having the status of a farmer) caring for a child up to 8 years of age or a disabled child up to 18 years of age or a child with a disability
  • Possibility for the employer to change the system or work schedule, as well as the possibility of ordering overtime work to the extent necessary to ensure the continuity of the company's operations
  • Exemption of an employer who as on 29 February 2020 reported to ZUS less than 10 insured persons, from the obligation to pay unpaid contributions for obligatory social insurance, health insurance due for the period from 1 March 2020 to 31 May 2020.
  • This applies to self-employed whose turnover was lower than 300% of average monthly salary
  • 3-month exemption from payment of social security contributions for entrepreneurs employing from 10 to 49 people, with the exemption applying only to 50% of the total amount of unpaid contributions shown in the settlement declaration submitted for a given month.
  • Possibility of deferring or distributing ZUS contributions into instalments without additional prolongation fees
  • Downtime benefit, for persons working under civil law contracts from for 3 months

Tax provisions

  • The deadline for submitting the CIT-8 annual return has been extended until 31 May 2020 (for hospitals and public benefit organizations until 31 July 2020)
  • Deferment of CIT advance payments for March-May to 20 July 2020
  • Deferment of payments on account of PIT, CIT, VAT without a prolongation fee
  • Settlement of the entire loss from the current year in 2021 by adjusting PIT/CIT for 2019 to the limit of PLN 5 million in case of a decrease in turnover by at least 50% in 2020 compared to 2019
  • Extension of the deadline for submission the PIT tax return until the 31st of May
  • Suspension of the obligation to increase the tax base for particular settlement periods in 2020 by costs resulting from liabilities which have not been settled in the due date, if the revenues obtained by the taxpayer are reduced by at least 50% in comparison to the preceding tax year
  • Relief for bad debts - exemption from the obligation to increase the income used to calculate the advance payments in 2020 by the unpaid liabilities of the taxpayer related to the purchased goods and services
  • Deferment to 1 June 2020 the obligation for payers to transfer advance tax on salaries paid in March and April 2020
  • The right to deduct from the tax calculation basis or an advance on PIT or CIT up to 200% of the value of the donation made in 2020 to counteract COVID-19
  • Income tax exemption of the downtime benefit received under the COVID-19 Act
  • Postponing the deadline for the entry into force of the new JPK_VAT until 1 July 2020
  • Postponing the deadline for the entry into force of the new VAT matrix until 1 July 2020
  • Extension of the deadline for submitting transfer pricing information to 30 September 2020 for taxpayers whose tax year ends before 31 December 2019
  • Extending up to 14 days the deadline for submitting a payment notification to an account not included in the list of VAT taxpayers (White List of taxpayers)
  • Possibility of resignation from the simplified form of PIT and CIT advance payments
  • Postpone the date of payment of the tax on commercial buildings for the months March-May to 20 July 2020 for taxpayers whose income will be at least 50% lower than the same month of 2019
  • Postponement of the introduction of the tax on retail sales until 1 January 2021
  • The possibility for municipalities to exempt certain groups of taxpayers from property tax and to extend until 30 September 2020 the payment dates of the April-June 2020 tax
  • Possibility of single depreciation of fixed assets acquired for the production of goods related to the COVID-19 counteraction
  • Possibility of retrospective tax deduction of R&D costs for counteracting COVID-19
  • Postponement of the deadline for the submission of IFT-2R and ORD-U until the end of the 5th month after the end of the tax year, if the obligation to submit is due between 31 March and 31 May 2020
  • Suspension of reporting of national MDR tax schemes until the end of the epidemic, no later than 30 June 2020
  • Possibility of retaining the tax status of a capital group for taxpayers who will suffer negative economic consequences in 2020 due to COVID-19 and will not meet the condition of profitability and lack of tax arrears for this reason
  • Extension of the deadlines for submitting local and group transfer pricing documentation until 30 September and 31 December 2020 respectively

Financial support

  • PLN 100 billion under the Polish Development Fund (PFR) to protect Polish companies and workplaces, including:

a) about PLN 25 billion for microenterprises - up to a maximum of PLN 324 000 for one microenterprise (about PLN 70-90 000 on average) for three years, of which up to 75 percent are non-refundable amounts,

b) about PLN 50 billion for small and medium-sized companies.

c) large and medium-sized enterprises may apply for:

  • loans granted as part of liquidity financing to regulate current payments
  • partially forgivable loans for COVID damaged companies (forgiven amount may be even 75% of the loan amount, not more than 75% of COVID damage)
  • equity financing (cquisition by the Polish Development Fund of Equity Instruments of enterprises on arm's length basis and subscribing for by the Polish Development Fund of Equity Instruments under Public Aid Regime
  • Possibility of granting loans by ARP S.A. to entrepreneurs in a difficult financial situation with a 15-month grace period in repayment (condition: the company cannot undergo any restructuring),
  • The possibility for Bank Gospodarstwa Krajowego, in its own name and on its own account, to grant sureties and guarantees for the repayment of loans taken out by entrepreneurs, excluding micro and small entrepreneurs, to ensure financial liquidity. The surety or guarantee is granted at the request of the entrepreneur and covers not more than 80% of the remaining loan amount covered by the surety or guarantee.

Other measures

  • Postponement of the deadline for reporting to the Central Register of Real Beneficiaries
  • (CRBR) until July 2020
  • Postponement by 6 months the deadline to launch PPK for companies with 50-249 employees
  • (as of 30 June 2019) - the deadline for concluding PPK management contract is 27 October 2020 and for concluding PPK running contract is 10 November 2020
  • Abolition of the restriction of trade on Sundays by allowing workers and employees to take up activities such as unloading, receiving and displaying first necessities
  • Suspension of the running of civil and administrative trials for the time of both an epidemic hazard and a state of epidemic
  • Expiration of mutual obligations of the parties to lease contracts for commercial premises located in commercial objects with a sales area exceeding 2000m2 for the duration of the prohibition of tenants to operate in these facilities
  • Within 3 months after the termination of the ban, the lessee will be obliged to submit to the lessor an unconditional and binding offer to extend the lease agreement on the existing terms by the duration of the ban plus 6 months

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Christian Fielding
Christian Fielding
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