The Polish Development Fund SA (PFR) will finance companies which are then subject to restructuring. According to the planned amendments to the rules on taxation of limited companies, it is assumed that such companies will be subject to tax entity, i.e. to corporate tax taxable persons (CIT).
The question arose as to whether, in the case of possible transformations and mergers, there could be a loss of the right to finance from the PFR for entrepreneurs operating in the form of these companies or the need to reimburse the PFR.
According to a message issued by PFR (pdf 150 KB) for SME sector entities receiving financial support under the “Polish Development Fund for Small and Medium-sized Enterprises”, the reorganisation which results in a universal succession or continuation of activities does not require prior approval of the PFR.
Therefore, in the case of transformations (connections, divisions) of entrepreneurs, if the activity continues/universal succession resulting from such actions, the financial subsidy agreement remains in force. This means that there is no risk of losing support.
In contrast, in the case of financing provided in the form of liquidity and preferential loans under the government programme ‘Financial Shield of the Polish Development Fund for Large Companies’, the contracts concluded by PFR with entrepreneurs generally provide that prior to the reorganisation (both conversion and merger or division), borrowers should obtain approval from the PFR to carry out such processes.