In a press release issued on 18th May 2020 the Ministry of Finance explains how to tax financial subsidies for small and medium-sized enterprises. According to this information, for tax purposes the subsidy should be treated as a loan and therefore its reception will not be taxed and the return of the subsidy will not involve any tax costs.
On the other hand, the tax costs may include the expenditure financed by the PFR subsidy, if it is classified as a tax-deductible cost in accordance with the general principles arising from tax laws, even if the subsidy received is written off.
It should be noted that, according to the Ministry of Finance, the amount of the subsidy written off will constitute tax income, just as it is in the event of writing off a loan or other taxpayer's liabilities.
Moreover, the Ministry of Finance informs that in 2021 there will be a possibility of a partial tax exemption of the subsidies written off. The PFR and the Ministry of Finance are currently developing detailed rules for such a solution.
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