Shield 4.0 - tax changes

The 4.0 Shield includes such facilitations for companies as subsidies to bank loan interest rates, facilitating access to credit holidays or protection against company acquisitions by entities from outside the European Union/EEA. It will also introduce a number of new solutions in the area of labour law, aimed at adapting current regulations to the challenges of COVID-19.

Shield 4.0 also assumes several changes concerning taxes. What will change after the new aid act enters into force?

Shield 4.0 - tax law:

• possibility to deduct from the tax base the donations made to:
  • welfare homes for mothers with juvenile children and pregnant women,
  • shelters for the homeless,
  • onight shelters,
  • support centers,
  • family support homes,
  • social assistance homes
    

• possibility to deduct from the tax base the value of laptops and tablets (fit for use and not older than 3 years) transffered to certain entities as donations from 1 January 2020 to 30 September 2020; for recipients, these donations are not included in revenues

• possibility of including in tax deductible costs the cost of manufacture or purchase price of goods or rights provided as a donation as referred to above

• possibility to include in tax deductible costs paid contractual penalties and damages, if any:
  • defect in the goods delivered, works and services performed
  • delay in delivery of defect-free goods
  • delay in removal of defects in goods, works and services was caused in connection with the COVID-19 pandemic;
    

• Shorter deadlines for bad debts relief - the possibility to deduct unpaid debts from income in the settlement period in which 30 days have passed from the date of expiry of the payment deadline specified in the invoice (bill) or in the contract;

Shield 4.0 was directed to further work in the Senate.