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Microlending and its effects on income tax and VAT

What to note in the context of the inclusion of micro-loans in the financial statements 2020?

What to note in the context of the inclusion of micro-loans in the financial statements 2020?

Obtained from Article 15 oz section 10 specific provisions on COVID-19 redemption revenue

What to note in the context of the inclusion of micro-loans in the financial statements 2020?

Obtained from Article 15 oz section 10 specific provisions on COVID-19 redemption revenue 5,000 PLN micro-credits to micro-entrepreneurs obtained from the labour fund are tax-neutral, do not constitute tax revenue both on the basis of personal income tax and corporate income.

Purchases financed by microlending give the VAT taxable person the right to deduct VAT, including statutory exemption and restrictions (e.g.

50% – with regard to the use of a passenger car for which the taxable person does not keep track record of the vehicle.) The taxable person shall be entitled to deduct VAT on purchased goods and services in so far as they are intended to carry out taxable activities. Article 86(1) VAT Act.

It requires that, if the received micro-loans significantly influence the assessment of the entity's financial and financial situation and financial performance, when drawing up financial statements in accordance with Annex 1 to the Accounting Act, information on the amount of the micro loan received and its nature shall be disclosed in section 2 point 10 additional information and explanations.

This point reveals the amount and nature of individual items of costs and revenues of extraordinary value or which have occurred incidentally. For incidents in 2020 the appearance of coronavirus pandemic and the economic effects of coronavirus may be considered.

However, the Accounting Standards Committee leaves this decision to the individual itself in its recommendations.

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