On 16 May 2022 Poland has ceased to have an outbreak that has continued since 20 March 2020 At the same time under the Regulation of the Minister of Health dated 12 May 2022 on the announcement in the territory of the Republic of Poland of the state of the epidemic risk in the period from 16 May 2022 until further notice in the territory of the Republic of Poland, an outbreak of infection with the virus is declared SARS-CoV-2
With the introduction of an epidemic, a number of measures were implemented, which were of the nature of measures to prevent the spread of epidemics, and for taxpayers they were preferred primarily to reduce formal obligations. The transition from epidemic to epidemic danger means that some of the solutions will cease to apply at the end of the month in which the outbreak was cancelled and thus 31 May 2022, some of them are still in place in the event of an outbreak.
Below we present which solutions are still valid, and which will no longer be used as of June.
Time limit for filing an application for bankruptcy
According to Article 15zzra Act dated 2 March 2020 specific prevention, prevention and eradication solutions COVID-19, Whereas other infectious diseases and the resulting crisis situations have been substantially amended by the deadline for submitting requests for bankruptcy;
If the grounds for declaration of bankruptcy of the debtor were established during the period during which the risk of epidemics or epidemics occurred because of COVID-19, and insolvency arose due to COVID-19, The time limit for filing an application for bankruptcy shall not start and shall be interrupted.
After this period the term runs again.
This means that the deadline for filing an application is still extended and in practice it will be possible to effectively submit a bankruptcy application within the time limit 30 the days following the cancellation of the outbreak, despite the early onset of insolvency, where the circumstances associated with the COVID epidemic are the cause of that condition.
Changes in taxes since June 2022
Following the withdrawal of the outbreak from 1 June 2022:
the minimum tax exemption is no longer applicable — from 1 June commercial property owners with a value of at least 10,000,000 PLN, if they are rented, leased or put into service under another contract of a similar nature, they will be required to settle the revenue tax on buildings;
the possibility of deducting donations made for the purposes of Covid-19 to NGOs;
One-off depreciation of fixed assets for the production of counter-measured goods disappears Covid-19 ;
the possibility of using a reduced, 5% CIT rates for the income of qualified intellectual property rights used to counter COVID-19. (Article 52u Act dated 15 February 1992 corporate income tax. In contrast, PIT taxpayers will be entitled to use this solution to the end 2022 (Article 38m Act dated 26 July 1991 personal income tax;
PIT/CIT taxpayers who bear eligible costs in connection with research and development activities in order to develop the products needed to counter this COVID-19, For the last time, they can settle these costs in advance for PIT and CIT for May.
PIT exemption limits – to the end 2022
By the end of the tax year in which the outbreak was cancelled due to COVID-19 there is an increase in the limits for certain PIT exemptions for benefits paid to employees (Article 52l(52t) PIT Act:
- grants other than those mentioned under Article 21(1)(26) The PIT Act, paid from share funds or an inter-branch union organization to employees belonging to that organisation, 3,000 PLN;
- aid received in the event of individual random events, natural disasters, long-term illness or death financed from turnover sources to 10,000 PLN;
the value received by the employee in connection with the financing of social activities referred to in the ZFŚS rules, in-kind benefits and benefits received by the employee in this respect, financed entirely by the funds of the ZFŚS or trade union funds, up to 2,000 PLN;
aid for leisure activities organised by entities active in this area, in the form of holidays, colonies, camps and winters, including combined with science, stay for 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 for treatment – children and adolescents up to years 18 financed from sources other than ZFS to 3,000 PLN;
tax-free parking benefits paid in connection with the epidemic COVID-19.
Following the cancellation of the outbreak in May 2022, the above possibility to benefit from increased exemption limits in PIT will only be possible to the end 2022
Relief for bad debts in 2022
To the end 2022 PIT/CIT taxpayers need not increase the tax base in advance by the value of liabilities not paid and at the same time included in the tax costs.
Extended preferences
The following preferences continue to apply in order to maintain an epidemic risk:
- the time limit for filing an application for bankruptcy shall be suspended;
- do not need to report national tax schemes (MDRs);
- preferences for holding a residence certificate will be maintained;
- longer (14-(day) the time limit for notification of payment of claims to an account outside the so-called white list;
- extended deadlines for issuing tax rulings (by 3 months).
Author: Leszek Dutkiewicz, partner Russell Bedford Poland. Associated with the company from 2011. Director of RBP office in Katowice. In years 2008 – 2011 worked for leading consulting companies (Ernst&Young, KPMG, BDO) providing tax advisory services.
He specializes in tax and economic law, primarily in international tax law, tax proceedings, VAT and transaction prices. Author of a publication on tax, civil and international law issues. Lecturer in tax law training. He has legal education, in 2008 graduated from the Faculty of Law and Administration of the Jagiellonian University.