Polish “anti-crisis shield” – basic information
The President and the Prime Minister of Poland have announced a package of support measures for entrepreneurs called the Anti-Crisis Shield. We present the most important solutions for entrepreneurs below:
Exemption from Social Insurance Institution (ZUS)
A payer may apply for exemption from ZUS contributions (social security) in case where the two following conditions are met jointly:
- the payer was registered with ZUS before February 1, 2020;
- the payer, who submitted less than 10 insured persons on the date of February 29, 2020.
Taking the above into account, the payer is entitled to apply for dismissal for the period from March 1, 2020 to May 31, 2020. Additionally, in order to be granted the exemption from ZUS contributions, settlement statements or personal monthly reports due for March, April and May 2020 must be submitted not later than by 30 June 2020.
Supplement to ZUS contributions
For supplement to ZUS contributions, entrepreneurs who have registered a decrease turnover can apply. Mentioned decrease is understood as a decrease in sales of goods or services from January 1, 2020, in any two consecutive months to the day preceding the day of submitting the application compared to the corresponding months of the previous year.
The amount of supplement depends on the percentage decrease turnover. In the event that turnover decreased by at least:
- 30% – the supplement may be granted up to the sum of 50% of the salaries of individual employees covered by the application for the supplement and 50% of the minimum amount of remuneration for work;
- 50% – the supplement may be granted up to the sum of 70% of the salaries of individual employees covered by the application for the supplement and 70% of the minimum remuneration for work;
- 80% – the supplement may be granted up to the sum of 90% of the salaries of individual employees covered by the application for the supplement and 90% of the minimum remuneration for work.
It must be highlighted that the supplement is granted for a period of up to 3 months. The employer who has been granted the supplement is obliged to maintain the same employment level after the end of receiving the supplement for a period equal to the period of receiving it.
Settlement of Corporate Income Tax (CIT) and Personal Income Tax (PIT) losses
Taxpayers who incurred a loss in 2020 and obtained in this tax year revenues lower by at least 50% compared to the previous year shall be able to deduct from the income obtained in 2019 an amount not exceeding PLN 5,000,000.00. For this purpose, taxpayers who have already submitted a tax return for 2019 may submit a correction.
Downtime benefit
Persons who run a non-agricultural business activity and perform civil law contracts may apply for a downtime benefit if there has been a downtime in their business operations.
It is generally granted in the amount of 80% of the minimum remuneration for work determined on the basis of applicable minimum renumeration regulations.
To apply for the benefit, persons conducting non-agricultural business activity had to start it before February 1, 2020, and persons employed under civil law contracts, had to sign it before February 1, 2020.
Applications for downtime benefit can be submitted to ZUS no later than within 3 months of the month in which the epidemic was abolished. The downtime benefit is exempt from income tax.
Supplement connection with downtime or reduction the working hours
If, as a result of a decrease in economic turnover, the employer had to reduce the working hours or downtime occurred and the employer is not in arrears with settling tax liabilities, ZUS contributions, health insurance, the Guaranteed Employment Benefit Fund or the Labor Fund may gain from a benefit to protect jobs.
The benefit is paid for a period of reduction working hours or downtime.
Abridgement of period of rest for employees
For employers with a decrease in economic turnover and who are not in arrears in settling tax liabilities and ZUS contributions, there is a possibility of reducing an uninterrupted period of rest for an employee from 11 to 8 hours (provided that an equivalent period rest is given to the employee within next 8 weeks) and weekly rest period from 35 to 32 hours. The employer, in consultation with trade unions or employee representatives, shall also be able to extend the daily working time to 12 hours and the reference period to a maximum of 12 months.
Extended deadline for reporting beneficial owner
The notification obligation of beneficial owner has been extended until July 13, 2020.
Extended term for individual interpretations
The submission of information on transfer prices has been extended until September 30, 2020.
Whitelist
Extension of up to 14 days to notify the tax office of payment to an account outside the so-called taxpayers’ white list.
Changes in the tax credit for bad debts
Excluding the application of regulations in income taxes regard to the so-called bad debts in relation to debtors. Under the conditions specified in the so-called anti-crisis shield act, no regulations will be applied to advance payments of debtors, who should take into account unpaid liabilities when calculating income tax advances. Thanks to it, the debtor shall not have higher liabilities and the creditor will benefit from the tax credit as before.