In order to support citizens, both as private individuals and companies and as entrepreneurs, the legislator carries out many types of action under subsequent crisis shields. However, there is a lack of typically tax exemptions, such as the expected reduction in the time limits for VAT refunds and the suspension of the split payment mechanism. However, this does not mean that taxes are completely disregarded by legislators.
A decision to postpone the submission of annual corporate and personal income tax returns (hereinafter CIT and PIT) was particularly important, although initially reluctant. Based on Article 50 Act dated 29 August 1997 - Tax Ordinance (i.e.
Journal of Laws of 2019, item 900 as amended) Minister of Finance issued a regulation dated 27 March 2020 on the extension of the deadline for the submission of a statement of the amount of income earned (loss incurred) and the payment of tax due by corporate tax taxable persons (Journal of Laws, item 542).
It extended the deadline for submission of the declaration CIT-8 and payment of tax on 30 April to 31 May 2020, for taxable persons whose tax year ended between 1 December 2019 to 31 January 2020
Ministry of Finance 14 May introduced changes to the Crisis Shield 1.0, extending the rules on PIT annual declarations also to declarations on solidarity tribute
The time limit for submission of the PIT declaration was extended after adoption Article 1(14) Act dated 31 March 2020 amending the Act on Special Solutions for Prevention, Prevention and Control COVID-19, other infectious diseases and their emergency situations and certain other laws (Journal of Laws, item 568 as amended), which he added to Act dated 2 March 2020 specific prevention, prevention and eradication solutions COVID-19, other infectious diseases and the resulting crisis situations (Journal of Laws, item 374 as amended, Next: Crisis Shield 1.0) Article 15zzj.
According to that provision, submission of annual declarations on personal tax within the time limit 1 June 2020 and payment of the tax due, was equivalent to the so-called ‘voluntary disclosure”, and thus offset the risk of a tax investigation linked to late payment.
Therefore, the deadline for the submission of the declaration itself has not been immediately postponed, but only for the removal of the carnoscarat risk associated with its submission at a later date. However, this could have caused interest to be charged on such a delay.
The problem was solved by a regulation of the Minister of Finance dated 23 April 2020 on the non-collection of interest on late payment from certain tax arrears on personal income tax for 2019 with regard to COVID-19 (Journal of Laws, item 728).
However, transfers of time limits have not yet been made one the income tax, which is the solidarity tax. This Denmark, also called the 3rd tax threshold, is introduced in Chapter 6a (exactly Article 30h and Article 30i) Act dated 26 July 1991 on personal income tax (i.e.
Journal of Laws of 2019, item 1387 as amended) at the time of adoption Act dated 23 October 2018 on the Solidarity Fund for the Support of Persons with Disabilities (Journal of Laws, item 2192 as amended), and its provisions apply from 1 January 2019 So unfortunate, then, that first year of declaration of solidarity (DSF-1) and payments of this tax were made simultaneously for the pandemic period.
There has therefore been an unusual situation in which individuals can pay the main annual tax later than an additional solidarity tax. This was also a serious problem for taxpayers who may have had problems with correct tax return. As not all income is included in the basis for calculating the tax, the risk of error was significant.
An additional obstacle was the difficulty of contacting tax advisers in connection with the restrictions introduced.
The Ministry of Finance has clearly noticed these problems because 14 May introduced changes to the Crisis Shield 1.0, extending the rules on PIT annual declarations also to declarations on solidarity tribute. However, this has not solved the problem of possible interest.
There was therefore a similar situation as with the PIT declarations, so a similar arrangement was applied to the tax in the form of an appropriate implementing act.
Regulation of the Minister of Finance dated 22 May 2020 on the non-collection of interest on late payment from an unpaid solidarity tribute due to COVID-19 (Journal of Laws, item 916), is very similar to the above Regulation dated 23 April 2020 Tax payers obliged to pay the solidarity tax can therefore make declarations without much concern and pay outstanding tax to 1 June 2020
Author: Damian Kuszewski
The author is a graduate of the Warsaw School of Economics in Finance and Accounting, and is currently a law student at SWPS. From 2018 Associated with Russel Bedford Poland. His professional interests are tax law and, in particular, income taxes.