Based on its announcement of March 19, 2020, the Ministry of Finance is suggesting the following types of anti-crisis solutions related to taxes.
• Potential tax loss carryback (PIT and CIT).
The loss recorded in 2020 can be applied to the previous profitable year (2019). For that purpose, it will be necessary to submit an amended tax return for 2019. This can be done by taxpayers whose revenue generated in 2020 drops by at least 50% against the 2019 figure. It will be possible to deduct a loss of up to PLN 5m from the 2019 income (any surplus over that amount might be applied to subsequent years).
• Extension of the deadline for payment of the minimum tax on commercial real estate for March-May 2020 until July 20, 2020.
This option can be used by taxpayers whose revenue in a given month, compared to the corresponding month of the previous fiscal year, drops by at least 50%. This tax can also be paid at a later date by taxpayers that did not generate revenues in the previous fiscal year but are bearing the negative implications of coronavirus in March-May 2020.
• Preclusion of the application of the so-called bad debt regulations with respect to debtors that should take unpaid obligations into account when calculating income tax advances.
This exemption will apply to taxpayers whose revenues generated in specific billing cycles (monthly or quarterly) decreased by at least 50% against corresponding periods in 2019. This option can also be used by taxpayers that did not generate revenues in the previous fiscal year but are bearing the negative implications of coronavirus in 2020.
• Possibility to drop simplified income tax advances; calculating monthly advances on the basis of current profits, instead.
The so-called “small taxpayers” will be entitled to drop simplified income tax advances. Those who decide to opt out of simplified advances in March-December 2020 will be calculating their monthly advance payments on the basis of the current income.
• Extended deadline for CIT-8 filing for NGOs.
• Newly-introduced deduction of donations (cash or in-kind) from PIT and CIT – this applies to donations aimed at prevention and combating of the coronavirus epidemic, given to entities that offer healthcare services, incl. sanitary transport, as well the Material Reserves Agency and the Central Base of Sanitary and Anti-Epidemic Reserves.
• Extension of the deadline for advance payroll tax payments for March and April.
The plan is to extend the deadline until June 01, 2020.
• Temporary waiver of the extension fee for payment in instalments or deferral of tax and tax arrears.
• Deferred obligation to submit new SAF-T_VAT for large enterprises – until July 01, 2020.
• Deferral of submissions with the Central Register of Beneficial Owners – until July 01, 2020.
• Possibility to introduce property tax exemptions at the municipal level for enterprises suffering from the negative impact of the coronavirus epidemic.
• Increased flexibility of the National Revenue Administration with respect to performance of its tasks in the time of crisis. Possibility to suspend tax audits, tax procedures and customs/tax inspections while the state of epidemic threat is in effect.
• More flexible financial management rules for entities operating in the public finance sector, incl. local authorities, special-purpose funds, executive agencies and the national budget, in order to offer the quickest and most efficient way to use public funds for purposes related to COVID-19 prevention.
• Possibility to suspend administrative enforcement procedures related to financial obligations.
Please feel free to contact us for any assistance.
Tax Advisor / Partner
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