The crisis shield foresees a number of changes in tax areas aimed at improving the financial liquidity of companies primarily by postponement of the selected obligations and in some cases a reduction in the amount of the obligation.
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Reversibility of tax loss settlement in PIT and CIT
Tax payers of PIT and CIT may reduce income (income) generated on a single basis In 2019 o amount of tax loss from 2020, not more than by amount 5,000,000 PLN. The condition is to reduce total revenue In 2020 with at least 50% compared to 2019
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Deferment of time limits for submission of annual tax returns 2019 and payment of the tax due:
- - in CIT: until 31 May 2020 for all entrepreneurs, to 31 July 2020 for public benefit organisations;
- - in PIT by day 31 May 2020;
In addition, transfer 1% to the OPP will also be possible in the event of submission of a PIT statement for 2019 or PIT-OP statements after the deadline, but not later than 1 June 2020 (Correction of this statement to 30 June 2020).
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Option to opt out of simplified advances In 2020
The so-called "small taxpayers" if they bear negative economic consequences due to COVID-19, may waive payment of advances in simplified form for the months of March-December 2020
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Extension of the deadline for advance payments by PIT payers
Advances on PIT collected in March and April 2020 on revenue from widely understood work can be paid to 1 June 2020
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Deduction of donations to fight coronavirus
Taxable persons may deduct donations from income over the period from 1 January 2020 to 30 September 2020 specific treatment entities to address COVID-19 (whether or not to a height 200% values).
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Exclusion of the application of so-called bad debts in income taxes
The debtors shall not be required to increase the basis for calculating the advance tax on the amounts of outstanding invoices, provided that:
- • suffered negative economic consequences due to COVID-19 during a given settlement period,
- • The revenue generated by them during the accounting period shall be at least by 50% lower than the revenue from the same period of the previous year.
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Transfer of payment deadline for commercial property tax
Date of payment of 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.
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Changes in transfer prices
The anti-crisis shield provides that for taxpayers whose tax year started after 31 December 2018, and finished before 31 December 2019, the time limit for submission of transfer pricing information (TP-R) is extended to 30 September 2020
Crisis shield 2.0 extended the rules on time limits for transfer pricing by:
- - extension to 30 September 2020 the date of submission of the declaration of drawing up of the local transfer pricing documentation for entities whose tax year or financial year started after the date of 31 December 2018 and finished before 31 December 2019;
- - extension to those entities until 31 December 2020 the deadline for joining the group transfer pricing documentation (master file) to the local documentation.
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One-off depreciation of fixed assets purchased for the production of countermeasured 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.
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Higher limits for PIT exemptions
In 2020 The exemption limits for PITs 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 (under Article 21(1)(78) point b) – the new limit would apply both In 2020 and In 2021
Reduced IP Box rate in monthly income tax advance
Entrepreneurs who derive income from qualified intellectual property rights used to counter COVID-19, may apply a rate 5% already at the stage of fixing the amount of the advance rather than only in the annual statement so far.
Changes for PIT taxpayers - Government proposes to 1% could be given in the tax return submitted by the date 1 June 2020 or in the correction of this testimony by day 30 June 2020
All other details about the law contained in the Crisis Shield can be found in our Guide: www.russellbedford.pl/services/anti-crisis guide