Effects of the cancellation of an outbreak

Due to the spread of the virus in the country and in the world SARS-CoV-2, the state of epidemic in Poland as of 16 May 2022 has been replaced by an epidemic emergency. For more than one year, its duration has been gradually extended and for the moment the last extension has been in force until the end of June 2023. Date 1 July 2023 The state of emergency epidemic has gone back to history.

The decision to revoke the emergency was taken taking into account the request of the Chief Sanitary Inspector, who cited a decrease in the number of diagnosed virus infections SARS-CoV-2 and the decreasing number of deaths and hospitalisations associated with them.

During the period of the epidemic, many legal standards relating to tax obligations were introduced and maintained. The entry into force of the Regulation will result in the cessation of most of the special regulations laid down, inter alia, in the provisions of the Act on Special Solutions for Prevention, Prevention and Combating COVID-19 (‘Covid Act’). According to the above, we can expect the return of most of the legislation in force before the virus is present.

Below we discuss the most important tax and legal effects of the withdrawal of the state of emergency.

TAXATION OF THE WITHDRAWAL OF THE SITUATION OF EPIDEMIC RISK

MDR obligations

During the duration of the outbreak, the timing of reporting of national tax schemes (MDRs) was suspended. Persons acting as a promoter, as a beneficiary and as a supporter were therefore not obliged to provide information and notifications on national tax schemes resulting from the provisions. Tax Ordinance.

The suspension of deadlines for reporting national tax schemes will cease to apply on the basis of the so-called covid rules 30 on, after the date of cancellation of the emergency declared in relation to COVID-19.

Therefore, 1 August 2023 Once again, the general rules on the timing of the reports of national tax schemes will apply.

Individual interpretations

In accordance with the rules set out in Tax Ordinance, The Director of National Tax Information shall be required to issue individual interpretations as soon as possible, but not later than the deadline. 3 months after the date of the application.

In the current state of emergency, the waiting time for the examination of the application by the Director of National Tax Information has been extended to 6 months. However, after the emergency has been cancelled, the basic three-month waiting period for the interpretation will return.

Residence certificates

Pandemic COVID-19 and its emergency also affected the rules on the use of residence certificates when levying withholding tax. In accordance with the ,,cvid provisions in force’, if the period of validity of the certificate expires during the duration of an outbreak, it shall be extended for the entire duration of this condition and for an additional period 2 months after his cancellation.

It follows that once the emergency has ceased to apply, 1 September 2023 it will be necessary to obtain new, up-to-date residence certificates that will be valid in accordance with standard regulations.

Transfer prices

Following the cancellation of the outbreak, certain formal requirements for the adjustment of transfer prices in force prior to the emergence of the virus will return. SARS-CoV-2. The taxpayer wishing to adjust transfer prices will have to obtain a statement or accounting evidence from the related entity confirming that the entity has made the same adjustment.

However, there will be an exception to this rule if the taxpayer wishes to make a correction for the tax year in which the emergency or epidemic was present. In such a situation, there will be no requirement to obtain a statement or proof of accounting officer and therefore in accordance with the rules applicable during the pandemic period COVID-19.

Transfer to non-white list account

During the period of the outbreak, the time limit for submitting a notice of payment for an account not included in the VAT list (the so-called white list) was extended to 14 days from the date of the transfer order.

After the cancellation of this condition, the deadline will apply again 7 days.

Contractual penalties as revenue costs

Tax payers who pay contractual penalties and compensation for defects in goods, works and services supplied, and delay in the delivery of goods free of defects or delay in the removal of defects in goods or works and services, may include them in the cost of obtaining income if these defects or delays arise due to the risk of an epidemic or an outbreak declared due to COVID-19.

After 1 July 2023 the situation will be similar – it is important that defects in goods/services or delays in their removal arise due to the state of emergency or epidemic. It does not matter when taxpayers actually bear or deduct such costs – during or after the states mentioned.

PIT relief for employees

To the end 2023 there will still be covid limits on exemptions from PIT for certain employee benefits:

the amounts received by the employee in connection with the financing of social activities of in-kind benefits and cash benefits, financed entirely from the share-fund of social benefits or trade union funds (Article 21(1)(67) the Personal Income Tax Act) – of an amount not exceeding in the tax year 2,000 PLN (instead of 1,000 PLN),

payments for rest and travel related to this rest and stay for treatment – children and adolescents to 18 years from other sources than the social fund, the occupational social benefit fund or the Regulation (Article 21(1)(78) point (b) the Personal Income Tax Act) – of an amount not exceeding in the tax year 3,000 PLN (instead of 2,000 PLN).

Extension fee

Decisions on postponement of the time limit for payment of the tax or distribution of the payment of the tax in instalments and decisions on postponement or settlement of the payment of the tax arrears in instalments, together with interest on late payment or interest on unpaid advances in advance of the tax, shall fix a carry-over charge on the amount of the tax or tax arrears.

In accordance with the provisions of the Covid Laws, the carry-over fee was not fixed if the application was made during the period of the epidemic/emergency risk or during the period 30 days after its cancellation (and therefore at present within the period until 30 July 2023). Thus, for applications submitted from 1 August 2023 The relief is no longer applicable.

Fiction of service

Unreceived letters to be served for confirmation of receipt, the date of receipt of which specified in the notice of leaving the letter, together with the possibility of receiving it, could not be considered to have been delivered during the period of emergency and before the expiry of the 14 days from the date of the abolition of this condition.

The end of this state restores the pre-existing presumption of service of a double-visited consignment – a fiction of service of letters sent by traditional mail after their double-average.

OTHER IMPACTS OF APPLYING THE SITUATION OF EPIDEMIC RISK

Late leave without employee's permission

During the period of the emergency (or epidemic) situation, the Covid Act gives the employer the opportunity to grant to the employee, within the time limit indicated by it, without the employee's consent and with the omission of the leave plan, late leave of absence to 30 vacation days.

With the moment of cancellation of the emergency i.e. On 1 July 2023 This provision will become obsolete, and this will result in a return to the standard rule for granting leave, taking into account employee leave plans.

Safety training is back.

With the cancellation of the emergency, the deadline will begin. 60 days to carry out late interim training. The Covid Act extended the term of periodic training of health and safety to 60. the date from the date of cancellation of the emergency situation, where the time limit for such training is within:

• the duration of the epidemic or epidemic or
• during the period 30 days from the date of cancellation of the emergency situation, where no outbreak or outbreak is declared.

Note: The duration of the recurrent training is likely to be extended from 60 to 180 days under the Supporting Benefits Act, which was currently addressed to the President's signature.

Medical examinations

Periodic studies

The emergency situation has suspended the obligation of medical periodic examinations. In accordance with the Covid Act, following the cancellation of the emergency situation, late periodic examinations will have to be carried out within the time limit 180 days from the date of cancellation.

It is worth noting that the accumulation of late studies may result in difficult access to a doctor of occupational medicine, when in the short term an exceptionally large number of people will have to perform them. It is therefore worth considering directing employees for research now.

Preliminary studies

With the cancellation of the emergency situation, the obligation to carry out preliminary examinations in the case of employees employed as administrative and office staff will also return, who currently, in the event of having a current medical certificate of no contraindications to work under the conditions in question, do not have to perform such tests.

Note: no pre-tests are foreseen 180-the day-to-day time limit, so that obligation returns with the moment of cancellation of the emergency.

Prohibition of competition

Currently, under the Covid Act, employers are allowed to terminate a non-competition agreement with a deadline 7 days, even if the agreement itself does not provide for the possibility to terminate it.

From 1 July 2023 the rule of law giving that option will cease to apply, and the principle that termination of the non-competition agreement is permissible if the parties have clearly stated in the contract that possibility.

Checks and damages

During the period of the outbreak or epidemic, reported for COVID-19, in the event of a decrease in economic turnover or a substantial increase in the burden on the remuneration fund, the employer shall:

• checks,
• compensation or
• other cash benefits,
• – if the provisions provide for the obligation to pay the benefit, the employer shall not exceed ten times the minimum wage for the work determined under the minimum wage.

From 1 July this year is returned to existing legislation. The limit of the indicated clearance due to the exemption from the so-called economic reasons will again be 15-times the minimum wage for work.

Institutional Social Benefits Fund

At present, employers who have experienced a fall in economic turnover or an increase in the burden of the wage fund within the meaning of the Covid speciality may suspend their duties:

• the creation or operation of an occupational social benefit fund,
• making a basic copy,
• payments of holiday benefits.

From 1 July this year return the obligation in question, i.e. the need to create an FMS after compliance with statutory requirements.