We already know the final version of the amendment to the Act on Special Solutions for Prevention, Prevention and Combating COVID-19, other infectious diseases and their emergency situations and certain other laws. Most of the special provisions entered into force at the time of its publication, so 31 March 2020
The Act provides for a number of changes in tax areas which aim to improve the financial liquidity of enterprises and to postpone certain obligations.
Among the main principles of the Act are:
- • postponement of certain tax terms,
- • postpone the implementation of the new JPK VAT,
- • the possibility to reverse the loss incurred,
- • issuing electronic receipts,
- • Relief from donations to fight the epidemic.
The following is a discussion of the most important changes in tax accounting, which are included in a law called the Crisis Shield.
See the content of the Act here
Changes in income taxes
• Reversibility of tax loss settlement in PIT and CIT
Tax payers PIT and CIT who bear negative economic consequences due to COVID-19, will be able to deduct the loss suffered In 2020 from operating income obtained In 2019
This method of settlement of losses will be available to taxpayers who in the year 2020 At least lower business revenue by 50% revenue generated from this activity In 2019
In this case, taxpayers will be able to reduce the income generated from non-agricultural business activity in 2019, by the amount of the loss, but not more than the amount 5,000,000 PLN, by correcting the statement for this purpose 2019.
By way of derogation, the provisions do not explain what is meant by the term "negative economic consequences due to COVID-19”. Thus, it seems that the taxpayer itself assesses whether he has suffered negative consequences or not.
• Longer time to submit an annual PIT declaration
The Act provides that the submission of an annual tax return for 2019 and payment of tax after the deadline for its submission i.e. rod 30 April 2019, no later than the date 31 May 2020 will be equivalent to an expression voluntary disclosure, referred to under Article 16 KKS.
In that case, the taxable person shall not be liable to a penalty for fiscal criminal offence or fiscal misdemeanour. The taxpayers will therefore gain an additional month to make a tax return.
- Option to opt out of simplified advances In 2020 and calculation of monthly advances on current income
The so-called "small taxpayers" if they bear negative economic consequences due to COVID-19, may waive the payment of advances in simplified form for the months of March-December 2020 If you don't have a simplified advance, just let me know in your annual statement for 2020
• Extension of the deadline for advance payments by PIT payers
Advances on PIT collected by payers in March and April 2020 on the income from the business relationship, employment relationship, overwriting or cooperative employment relationship and on the social security benefits paid by the payers, can be paid by date 1 June 2020, if the payers have suffered negative economic consequences due to COVID-19.
Therefore, payment of the advance, instead of corresponding to 20 April 2020 and 20 May 2020 can be done to 1 June 2020
• PIT and CIT tax relief for donations to fight coronavirus
The PIT and CIT tax introduced the possibility of deducting from the base the amounts of (monetary or in kind) donations transferred for the prevention and eradication of coronavirus infection to healthcare providers, including sanitary transport, as well as the transferred Material Reserve Agency and the Central Sanitary and Anti-Vietremic Reserve Database.
The amount of relief depends on the time when the donation will be made. In the case of a donation:
- • up to day 30 April 2020 – The amount corresponding shall be deducted 200% the value of the donation;
- • In May 2020 – The amount corresponding shall be deducted 150% the value of the donation;
- • from 1 June 2020 up to day 30 September 2020 – The amount corresponding to the value of the donation shall be deducted.
In principle, the deduction will be made in the tax return. The exception will be taxable persons who obtain income from economic activity, rent or lease, who will be able to apply a reduction during the year when calculating advance tax.
The deduction shall not be subject to donations included in the cost of obtaining revenue, reimbursed in any form or deducted on the basis of other income tax provisions, e.g. provisions of the lump sum Act.
• Exclusion of the application of so-called bad debts in income taxes
The provisions on bad debts in PIT and CIT, under certain conditions, will not apply to advances of debtors who should take into account unpaid liabilities when calculating income tax advances. In this way, the debtor will not have a higher burden and the creditor will benefit from the relief as before.
Tax payers whose income generated during the settlement periods (monthly or quarterly) in relation to the corresponding periods in may benefit from the exemption from this obligation 2019 decrease by at least 50%.
It is worth noting that the exclusion of the application of so-called bad debts has not been referred to the VAT Act, which means that companies are still threatening sanctions for non-regulation of invoices during the 90 days.
• Transfer of the deadline to payment of tax on revenue from buildings
Date of payment of tax on revenue from rental, lease or leasing of buildings (i.e. the so-called minimum commercial property tax) for March − May 2020 will be extended to 20 July 2020, However, this will only apply to situations where all revenues of the entrepreneur will be lower by at least 50% in relation to the corresponding month of the previous year.
• Extension of the deadline for submission of TP-R information
According to the Law, the extension of the deadline will be covered by related entities whose financial year started after 31 December 2018 and for which originally defined 9-the monthly deadline for submission of information on transfer assessments shall be at the latest on 29 September 2020 Compliance with the original 9-monthly deadline by associated entities with abbreviated tax year (i.e.
tax year which started after 31 December 2018, But it didn't last full 12 months), may be difficult. Original 9-the monthly deadline for such entities in the coming months.
For other related parties, i.e. for affiliated entities whose financial year (applies to the CIT Act) or tax (applies to the PIT Act) started after 31 December 2018 and for which the original 9-the monthly deadline for submission of transfer pricing information shall expire on 30 September 2010 or later, time limit 9-the month is maintained.
- One-off depreciation of fixed assets which have been acquired for the production of counter-measured goods COVID-19
The Act also provides for the right to one-off depreciation of fixed assets acquired for the production of goods related to countering COVID-19. In particular, there are permanent means for the production of protective masks, respirators, disinfectants, medical protective clothing, footwear protectors, gloves, glasses, goggles, disinfectants and hand hygiene.
• New exemption limits for PITs
An important novelty compared to the original project is the change in the PIT Act of tax exemptions limits.
In 2020 PIT exemptions limits will be:
- – from 1,000 PLN to 3,000 PLN for claims paid from share funds or inter-company union organisations to employees belonging to that organisation (Article 21(1)(9a));
- - still without a limit, aid payments would be exempt in the event of individual random events, natural disasters, long-term illness or death from the social fund, ZFSZ, trade union funds or in accordance with separate provisions.
- However, with 6,000 PLN to 10,000 PLN the PIT exemption limit has been increased for consumption from other sources (referred to under Article 21(1)(26) point (b);
- from 1,000 PLN to 2,000 PLN for benefits in kind and in cash received by a worker in connection with the financing of social activities referred to in the provisions on the occupational social benefit fund financed entirely by the funds of the Social Security Fund or trade union funds (Article 21(1)(67)) – the new limit would apply both In 2020, and In 2021 (the exemption will still not apply to vouchers, tollons and other trade marks for goods or services;
- from 2,000 PLN to 3,000 PLN for leisure payments organised by entities active in this area in the form of holidays, colonies, camps and wintering grounds, including those connected with science, stay on sanatorium treatment, in medical and sanatorium facilities, rehabilitation and training and medical and care facilities, as well as travel related to this recreation and stay on treatment – children and adolescents up to years 18 (of Article 21(1)(78) point (b) – the new limit would apply both In 2020 and In 2021
- The reduced IP Box rate will be applied to monthly income tax advance payments
Entrepreneurs who derive income from qualified intellectual property rights used to counter COVID-19, they can only pay at advance 5% tax and not so far only in the annual statement.
• Extension of the time limit for the statement CIT-8
Finance Ministry Regulation dated 27 March 2020 extended the deadline to testify CIT-8 and payment of tax due to CIT taxpayers to 31 May 2020 To 31 July 2020 an extended deadline for taxable persons with only tax-free income (based on Article 17(1) the CIT Act), as well as those taxable persons who are entities in accordance with the Public Benefit Act and the Voluntary Service Act, for whom public benefit income constitutes at least 80% all revenue.
The content of the Regulation can be consulted here .
Changes in VAT
• Deadline for implementation of JPK-VAT
Move to 1 July 2020 JPK VAT has been implemented with a declaration for large entrepreneurs.
Tax payers who are big entrepreneurs gain additional 3 months to adapt their systems to the requirements of new reporting and to train their employees.
• Transfer of the deadline for the introduction of the VAT and WIs matrix
The deadline for the introduction of a new VAT rate matrix has also been postponed. The new VAT rate matrix will only apply from 1 July 2020, not as expected before 1 April.
Appropriate time shifts will also be subject to rules relating to the issuance and use of binding fee information (WIS).
So issued before 1 July 2020 WIS will be bound by tax authorities for transactions made after the date 30 June 2020
• Extension of the time limit for submitting notification to ZAW-NR
The taxpayer making the payment above 15,000 PLN to an account not included in the list of VAT taxable persons, may submit a notice of such payment not yet notified to ZAW-NR), not in 3 days a 14 days.
• The possibility of submitting an electronic receipt
It is also new to introduce the possibility of issuing electronic receipts. The seller will be able to issue and issue to the purchaser a fiscal receipt or invoice from any sale in paper form or with the consent of the buyer, in electronic form, by sending this document in an agreed manner.
Other changes in taxes
• The possibility for municipalities to introduce property tax exemptions
The Council of the municipality concerned may pass, for part of the year 2020, the tax exemption for land, buildings and structures used to conduct business. Exemptions concern groups of entrepreneurs identified by the municipality whose financial situation deteriorated as a result of COVID-19.
second with the provisions of the Act of Solutions allows for the extension, by a resolution of the municipal council, of the deadlines for payment of the instalments of the property tax payable in April, May and June 2020 - no longer than 30 September This year. In the case of natural persons, this solution will apply to the payment of tax payable by day 15 May, in the case of legal persons, payment of tax to: 15 April, 15 May and 15 June 2020
• Suspension of the deadline for submission of tax schemes
The Act also provides for the suspension of the start and suspension of the time limits for the submission of national tax schemes to the head of the KAS from the date of entry into force of the Act to 30 June 2020 However, the suspension will not apply to reporting cross-border schemes.
• Failure to collect the carry-over fee
The taxpayer will not have to bear the cost of the fees due to the postponement of the time limit for payment of the tax or the distribution of the payment of the tax in instalments, or the postponement or distribution of the payment of the tax arrears in instalments, along with interest, which is the revenue of the State budget. Exemption from the obligation to pay will continue during the epidemic and during the period 30 the days immediately following its cancellation.
On the other hand, the Minister of Finance will be able to decide on the exemption from interest for late payment from tax arrears.
• Tax Interpretations Later
The amendments also include issuing tax rulings. According to the existing legislation, an individual interpretation appears to be within three months. Currently, the deadline for the Director of KIS’s interpretation has been extended by a period of time three months.
Moreover, the bill allows the Minister of Finance to extend this deadline by another three months minister will be able to do so by regulation).
• Suspension of time limits for tax proceedings
In accordance with the Act, procedural and judicial deadlines are suspended, including in checks and proceedings conducted on the basis of Tax Ordinance, Customs and Tax Controls, Judicial and Criminal Tax Procedures.
• Continuation of suspension of retail tax
To the end 2020 the retail tax has been deferred, which is essentially to pay large-area stores. The current provisions of the Retail Tax Act assumed that this obligation would enter into force as of July 2020
• voluntary disclosure also in the form of an electronic document
The Act introduced the possibility of submitting voluntary disclosure also in the form of an electronic document with a qualified electronic signature, a trusted signature or a personal signature). To date, the Tax Penal Code provided for the possibility of bringing voluntary disclosure only in writing or for the record to cease.