COVID – tax changes
Below we present the overview of the tax changes adopted in order to counteract the economic effects of COVID-19 in Poland. The changes described below entered into force on March 31, 2020.
Apart from exemption from Social Security contributions for 3 months for small entities and self-employed, the newly implemented solutions do not introduce any exemptions from payment of taxes. In some cases however, they defer deadlines for payment of certain taxes.
• Delay of the new JPK_VDEK for all entities from July 1, 2020.
• Introduction of the new VAT rate matrix is moved to July 1, 2020.
• The deadline for notifying tax authorities about payments made to the bank accounts not included in the so-called The „White List” is extended from 3 to 14 days from the date of the transfer order.
• Payers of personal income tax may pay income tax advances for the months March and April 2020 by 1 June 2020.
• Income tax on commercial real estate for the months from March until May 2020 – extended payment deadline until July 20, 2020 for taxpayers whose income fell in a given month by 50% compared to last year.
• Taxpayers who have incurred a loss in connection with COVID-19 may settle this loss once (not more than PLN 5 million) for the previous tax year. The relief is provided for taxpayers whose income fell in a given month by 50% compared to last year.
• Income tax on commercial real estate for the months March – May 2020 – extended payment deadline until July 20, 2020. The relief is provided for taxpayers whose revenues fell in a given month by 50% compared to last year.
• Taxpayers are not required to apply the rules on ‘’bad debts’’. The relief is provided for taxpayers whose income fell in a given month by 50% compared to last year
• Taxpayers can fully deduct from their tax base donations made to counteract COVID-19 from January to September 2020
• Taxpayers can one-time tax-depreciate fixed assets entered in the records of the fixes asset in 2020, provided that they were acquired in order to produce the goods related to counteracting COVID-19.
• Entities whose tax year ended before December 31, 2019 have an extended deadline to submit Transfer Pricing information. The information has to be submitted by September 30, 2020
• the deadline for closing the account books is extended by 3 months (2 months for entities operating on the financial market);
• the deadline for submitting of the financial statement is extended by 3 months (2 months for entities operating on the financial market);
• the deadline for submitting of the information on the amount of income obtained on the territory of the Republic of Poland by non-residents (IFTR) extended until the end of the fifth month of the year following the year to which it relates.
• Extension of the deadline for submitting an annual tax return as well as for the payment of the income tax until May 31, 2020, if the tax year ended in the period from December 1, 2019 to January 31, 2020.
• In the case of performing activities related to excise goods, the head of the customs and tax office may withdraw from the necessity of the presence of the inspector when carrying out these activities or performing the activities by the inspector.
• Reportable tax arrangements (MDR) – the deadlines for submitting information on the reportable tax arrangement will be suspended until the date of cancellation of the epidemic emergency status in Poland, but no longer than until June 30, 2020.
• If the tax authority agrees to defer tax payment or tax arrears, it does not charge a prolongation fee from the taxpayer.
• Applications for individual interpretations of taxation law (ORD-IN) submitted and pending as of 31 March 2020 – the three-month deadline for their issuance is extended by yet another 3 months
• Extension of the transition period for the implementation of the so called ‘’fuel package’’
• The Social Insurance Institution (ZUS)– entities that by the end of February of 2020 reported less than 10 employees for insurance purposes, as well as self-employed workers, will be able to take advantage of the exemption in paying social security contributions for the months from March to May 2020, after meeting certain conditions regarding mainly the amount of their income in the previous months.
• The entry into force of the tax on retail revenues is postponed.
• The annual fee for perpetual usufruct is paid by 30 June 2020.
• The deadline for entering the Central Register of Beneficial Owners is moved from 13 April 2020 to 13 July 2020.
• The Council of Ministers may, by the way of issuing the special regulation, suspend administrative enforcement proceedings for monetary claims.
• Process and court deadlines in:
- Court proceedings, including administrative court proceedings
- Enforcement proceedings
- Criminal proceedings
- Tax penal proceedings
- Offenses proceedings
- Administrative proceedings
- Proceedings and controls carried out under the Tax Ordinance Act
- Customs and tax inspections
- Proceedings in cases regarding gambling
- Other proceedings conducted on the basis of separate acts
do not start, and proceedings that have already been initiated are suspended until the date of cancellation of the epidemic emergency status in Poland.
Legal actions carried out during this period in proceedings and controls are effective.
The tax authority may conduct control or proceedings, however, in practice, it is not allowed to issue a negative decision.