Written-off support from PFR Shields 1.0 and 2.0 without tax

The process of settling and writing-off subsidies from the PFR 1.0 Shield started in April. It concerns 346 770 companies, which received the total amount of PLN 60 405,985,427 under the programme, and up to 41 799 entrepreneurs will receive 100% write-offs, in the total amount of PLN 5 957 884 398.

Written-off subsidy amount tax exempted

In connection with the exemption of micro, small and medium-sized companies from returning all or part of the support received under the PFR Shield 1.0 and Shield 2.0, on 16 July, the Minister of Finance signed a regulation stating that companies will not have to pay income tax - PIT or CIT - on the written-off subsidy amount.

The tax waiver will apply to income (revenue) earned by the support beneficiaries from 1 June 2021 to 31 December 2022.

Written-off support as company revenue

The non-returnable amount of subsidies under the PFR Shields constitutes revenue for companies on which no tax has to be paid, and the expenses covered by the subsidy may be charged as tax-deductible costs under the general rules also in the situation of abandoning the collection of tax on the income from the written-off subsidy.

If the subsidy is written off and exempted from tax, the deductible expenses do not need to be adjusted and the expenditures included in the expenses financed by the support under PFR Shields are deductible.