At present, the COVID-19 is raging all over the world, which will seriously impact the safety of human beings and the development of economy and society. While introducing active anti measures, Poland also launched a stronger tax support bill.
Deferred payment of social security tax: delayed payment of social security tax.
Wage subsidies paid to employers: for companies that meet the loss and turnover reduction criteria, the government will give employees wage subsidies up to 40% of the average statutory wage. The employer must pay the same percentage of the employee's salary, and the employee must agree to reduce his salary by one fifth. The condition of the grant is that the employer shall not lay off employees.
Subsidies for individual businesses: if the income of people employed on commission and task-specific contracts, as well as the self-employed, is reduced by at least 15% compared with the previous month, and the income of the last month is less than 15681 zloty (300% of the average wage), the government will subsidize them up to 80% of the minimum statutory wage.
Increase the loss compensation reserve: if the company's turnover drops by more than 50%, the company will have the right to carry forward the tax losses incurred in 2020 to offset the revenue in 2019, with a maximum loss of 5 million zloty.
Deferred payment of VAT: taxpayers can apply for deferred payment of VAT, including installment payment and exemption of overdue tax.
Postponement of the effective date of tax policies: the effective date of some VAT policies and management reforms has been postponed from April 1, 2020 to July 1, 2020. These include changes in the range of reduced tax rates and the replacement of existing VAT returns with the standard tax audit file (SAF-T) format.
Changes in VAT rate: Zero VAT rate will be temporarily applied to selected domestic supplies that will help fight the COVID-19.
Choose "small taxpayers" to prepay taxes in simplified form: small taxpayers who pay corporate income tax and personal income tax prepaid (estimated) in 2020 in simplified form can choose not to prepay taxes in that tax year.
Exemption of social security fee: the social security fee payable by small enterprises (employing less than 10 people) and self-employed (whose monthly income is no more than 3 times of the average monthly income in 2020) from March 1, 2020 to May 31, 2020 will be exempted. The exemption policy must be submitted before June 30, 2020.
Deduction of donation related to COVID-19 situation: From January 1 to September 30, 2020, donations related to the new epidemic situation provided to medical institutions, material reserve institutions and central health and epidemic prevention reserve base will enjoy special deduction policy, and the amount will depend on the time of donation. The details are as follows: (1) Up to April 30, 2020 - the deductible amount is 200% of the donation amount; (2) During May 2020, the deductible amount is 150% of the donation amount; (3) From June 1, 2020 to September 30, 2020, the deductible amount is 100% of the donation amount.
One-time depreciation deduction of fixed assets: fixed assets purchased in response to COVID-19 situation can be deducted before tax as tax depreciation.
（Resource Document-issuing agency：Jiangsu Provincial Tax Service, State Taxation Administration、Published date：2020-05-13 10:25 Preferential Tax Policies in Poland During The COVID-19 period、Wolters Kluwer Global Daily Tax News Published date：2020-04-22 Poland Extends TP Documentation Deadlines In COVID-19 Response）
