Potential tax loss carryback – PIT and CIT (applies to losses incurred in 2020)

• Taxpayers that:
(i) suffered a loss in 2020; and
(ii) generated revenues which are at least 50% lower than in 2019 (with respect to the same operations)
due to COVID-19, can apply the loss recorded in 2020 to their CIT-8 return for 2019, yet no more than PLN 5m.

Tax on revenue from buildings deferred until July 20, 2020

• The payment date for tax on revenue from buildings for the period of March-May 2020 has been extended until July 20, 2020 for taxpayers:
(i) that have suffered negative economic consequences due to COVID-19 in a given month; and
(ii) whose revenue in a given month is at least 50% lower than in the corresponding month of 2019.

Deferral of PIT advances until June 01, 2020

• The deadline to pay PIT advances for March and April 2020 on revenue from employment agreements, civil-law agreements , proprietary rights (if the 50% rate of tax-deductible expenses applies) and social benefits from ZUS [Social Insurance Institution] is extended until June 01, 2020 if taxpayers have suffered negative economic consequences due to COVID-19.

Exemption from tax on civil-law transactions on loans

• The tax on civil-law transactions will not apply to loan agreements executed until August 31, 2020, yet only with respect to business entities whose liquidity has deteriorated as a result of the negative economic consequences related to COVID-19.

Waiver of the debtors’ obligation to apply bad debt relief in case of non-payment

• The debtor is not obliged to increase the income that serves as the basis for calculation of CIT advances in 2020 by the value of unpaid obligations; this applies to debtors that:
(i) that have suffered negative economic consequences due to COVID-19 in a given period; and
(ii) whose revenue in a given month is at least 50% lower than in the corresponding month of 2019.

Possibility to drop simplified income tax advances for March-December 2020

• The so-called “small taxpayers” that are using simplified income tax advances in 2020 can now decide to opt out of this solution in March-December 2020 if they are bearing negative economic implications related to COVID-19.

• The taxpayer should notify the tax authority accordingly in the 2020 annual return.

Deduction of donations made for COVID-19 prevention purposes

• This applies to donations (cash or in-kind) aimed at prevention and combating of COVID-19, made in 2020 to:
(i) entities performing medical operations, listed in the register indicated in the COVID-19 Act;
(ii) the Material Reserves Agency for purposes related to its statutory objectives;
(iii) the Central Base of Sanitary and Anti-Epidemic Reserves for purposes related to its statutory objectives.

Deferred effective dates

• Retail sales tax: January 01, 2021;

• New VAT rate matrix: July 01, 2020;

• SAF-T VAT for large enterprises: July 01, 2020.

No extension fee in case of tax and ZUS reliefs

• Waiver of the extension fee in case of a decision granting a tax exemption (on the basis of an application filed during the state of epidemic threat or the state of epidemic, or within 30 days after its revocation).

• Waiver of the extension fee in case of payment in instalments or deferral of social insurance contributions for the period starting from January 01, 2020 (on the basis of an application filed during the state of epidemic threat or the state of epidemic, or within 30 days after its revocation).

Tax audits and enforcement procedures

• Possibility to suspend tax audits, tax procedures and customs/tax inspections ex officio or at the taxpayer’s request. The decision takes effect as of its issue date. The authority shall deliver the decision promptly, yet no later than on the delivery date of a decision resuming the suspended audit/procedure. The periods of suspension are not taken into account for purposes related to the terms/dates of audits/procedures.

Reporting obligations – postponed deadlines

• Extension of the deadline to submit a notice of payment to a bank account from outside the so-called white-list to 14 days of the transfer date during the state of epidemic threat / state of epidemic, announced as a result of COVID-19.

• Suspension of deadlines for mandatory disclosure reports (other than related to cross-border arrangements) between March 31 and June 30, 2020.

• Extension of the term for the issue of advance tax rulings to 6 months.

Authorities’ right to offer further reliefs and solutions

• City/town councils can decide to pass resolutions based on which lands, buildings and structures related to business operations will be exempt from the property tax; this applies to business entities whose liquidity has deteriorated as a result of the negative economic consequences related to COVID-19.

• The mayor of a city/town or head of a municipality can adopt a regulation extending the payment dates for instalments of the property tax due for April-June 2020 until September 30, 2020 at the latest; this applies to a specific group of business entities whose liquidity has deteriorated as a result of the negative economic consequences related to COVID-19.

• The Ministry of Finance can issue a regulation postponing the dates for preparation, approval, publication and delivery of financial statements.

Please feel free to contact us for any assistance.

Małgorzata Wąsowska
Tax Advisor / Partner
malgorzata.wasowska@actlegal-bsww.com
+48 691 477 047