act legal covers all major European business centres.
Warsaw | Amsterdam | Bratislava | Bucharest | Budapest | Frankfurt | Milan | Prague | Vienna
meet us at www.actlegal.com

x
x

actlegal.com

Coronavirus alert

Relief measures to help businesses tackle coronavirus

13.03.2020

Force measure clauses

Coronavirus (causing COVID-19 disease) is an extremely contagious virus which has recently been declared a pandemic. On 12 March 2020, the Health Minister announced that a state of epidemic threat was about to be introduced in Poland. It is a legal tool introduced with respect to a specified area due to epidemic risk in order to allow the government to take certain statutory preventive measures. As a result, the Health Minister will be free to issue regulations imposing limitations on travel as well as sale and use of specified products, temporary restrictions on the operation of institutions and workplaces and bans on gatherings and public events.

Depending on the circumstances of the specific case, as a result of the state of epidemic threat, parties to a contract may be released from liability for defaulting on a contract. Legal commentators agree that certain events, so-called force majeure (vis maior) events, may serve as protection against a party’s liability for failure to perform an obligation or its inadequate performance. Force majeure does not justify every contract default. A party may seek relief under a force majeure clause only if the default is the consequence of circumstances of unforeseeable nature which were beyond the control of the parties involved.

Odds are that the government will announce a state of epidemic if the number of confirmed coronavirus cases continues to grow at the current rate. A state of epidemic is a legal tool introduced with respect to a specified area due to epidemic outbreak in order to allow the government to take certain statutory measures to combat the epidemic and mitigate its impact. If the state of epidemic is announced, a party defaulting on a contract may seek to be released from liability due to a force majeure event (e.g. an official ban on operation of office or commercial buildings or restrictions on export of certain goods). Moreover, the state of epidemic may serve as an additional reason to trigger the rebus sic stantibus clause stipulating that a contract may be amended where there has been a change of the circumstances in which the contract was made. In accordance with judicial decisions, such amendment will be permitted in the case of “circumstances which happen rarely, are unusual, extraordinary, but not necessarily a catastrophe. Natural disasters and epidemics may serve as an example (…).”

The coronavirus outbreak brings about a host of legal issues for businesses. Business owners would be well advised to verify contracts in terms of potential for modification of rules governing liability release and remain especially careful when executing new contracts. This will help them to avoid a situation where all of a sudden the contract cannot be performed (e.g. in case of recently made contracts, one will not be able to claim that a coronavirus epidemic is unforeseeable).

Coronavirus emergency act regarding tax issues

The Ministry of Development is working on a coronavirus emergency bill (in Polish: specustawa) which is to head to the Sejm on 25 March 2020. It is expected to enter into force on 1 April 2020.

The Development Ministry’s changes and proposals regarding taxes:
• change of the effective date of the so-called sugar tax (late 2020) and the new unified control file for VAT purposes (JPK VAT) for “large” taxpayers (1 July 2020);
• measures to facilitate accounting for VAT and split payment;
• early VAT refunds;
• retroactive deduction of losses incurred in 2020;
• option to deduct from taxes cancelled travel expenses for businesses affected by the coronavirus crisis;
• abolishment of tax rescheduling fee.

The Finance Ministry encourages taxpayers to use online services and contact public institutions through e-PUAP platform or helplines. Restricted availability of tax offices is also anticipated.

Applicable social security regulations

Subject to certain conditions which may apply also in the case of the coronavirus outbreak, applicable social security regulations may allow insurance holders to:
• reschedule the payment of social security contributions which are not due yet;
• pay overdue social security contributions in installments;
• write off debt resulting from social security contributions.

The first coronavirus emergency act

On 8 March 2020, the first coronavirus emergency act was signed into law. It introduced a number of special measures regarding the spread of the coronavirus, incl.:
• the option for employers to instruct employees to work from home;
• additional child care allowance for parents forced to look after a child under 8 years old due to the closure of a nursery, a kindergarten or a school;
• the option to purchase goods and services necessary to counteract the coronavirus without adhering to the public procurement regulations;
• the option to design, develop, redevelop, maintain and demolish buildings (and change the permitted use of them) in order to counteract the coronavirus without adhering to certain building regulations.

Please do not hesitate to contact us if you need more information on the topics discussed above.

Company law 
Marek Wojnar
Attorney-at-law / Managing Partner
+48 22 420 59 59
marek.wojnar@actlegal-bsww.com

Taxes
Małgorzata Wąsowska
Head of Tax Practice / Tax Advisor / Partner
+48 22 420 59 59
malgorzata.wasowska@actlegal-bsww.com

Labor law
Ewa Bieniak
Legal counsel / of Counsel
+48 22 420 59 59
ewa.bieniak@actlegal-bsww.com

Udostępnij

Related news

Press releases

act BSWW legal & tax provided advice to a company from Profit Development S.A. Group on the acquisition of the real estate located in Warsaw

The team of act BSWW legal & tax provided comprehensive legal advice on the conclusion of a sales and purchase agreement between the seller and a company from the Profit Development S.A. Group, which concerned  a real estate located in Warsaw, Ostródzka Street. The...

Press releases

act BSWW legal & tax advised Archicom S.A. on land acquisition in Wroclaw

The legal team of act BSWW legal & tax was responsible for providing comprehensive legal advice to Archicom S.A. on the acquisition of land in Wroclaw, on Wladyslawa Reymonta Street. The transaction was led by Mateusz Prokopiuk/ Partner with the support of Aneta Gi...

Press releases

act BSWW legal & tax advises WSE-listed developer on acquisitions for residential developments in Kraków

The team led by Michał Wielhorski, Managing Partner, advised ED Invest S.A. on a number of transactions involving the acquisition of land for multi-family residential developments in Kraków. Other team members included: Mateusz Prokopiuk, Partner and Aneta G...

Press releases

act BSWW legal & tax advised on the conclusion of lease agreements for space in the “Plac Unii” complex

The real estate team of act BSWW legal & tax was responsible for providing comprehensive legal advice in the process of negotiating and concluding lease agreements for office, retail and service space located in the “Plac Unii” complex, on Pulawska Street in Warsaw....

Press releases

act BSWW legal & tax advises a company controlled by Adventum Group on acquisition of the Wola Retro office building in Warsaw, for almost EUR 70 million

The act BSWW team provided comprehensive advice on both: financing and acquisition of the Wola Retro office building in Warsaw. Financing part of the deal was led by Marta Kosiedowska (Partner) with support of Mariusz Grochowski (Senior Associate). Transaction itself ...

News

Get the RET right. The tax side of real estate | June 2022

Ministry of Finance suggests more changes to income taxes. Following prior announcements, the draft Act of June 27, 2022 Amending the Corporate Income Tax Act and Selected Other Acts has been published recently. It covers the following: - Postponement (until the end ...

View all