COVID-19: EY Government Support Package - Poland 20 April 2020
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COVID-19: EY Government Support Package Poland 20 April 2020
2 COVID-19: Anti-crisis Shield Package
The President of Poland and the Prime Minister have announced a series extraordinary
measures intended to provide support to society and entrepreneurs and limit the negative
effects of the COVID-19 pandemic. These measures are referred to as the “Anti-crisis
Shield” and cover five main pillars across different areas of the economy. The value of the
package is substantial, investing billions of euros into the economy, at present almost 10% of
Polish GDP. The five pillars are:
1. Employee safety
2. Enterprise financing
3. Financial system strengthening
4. Healthcare protection
5. Public investment
These aims are primarily being delivered Areas being addressed:
through: 1. Providing liquidity through financing
• Central Polish Government and the schemes
Polish National Development Bank in 2. Helping employers to protect jobs
terms of the guarantees schemes that
been announced. 3. Cash flow support, including
government tax deferrals
• The central tax system (covering cash
tax deferral and employment support). 4. Governance and reduced administration
• The Social Insurance Institution (ZUS) 5. Legal considerations including the
deferral into force of certain acts
27 April 2020 COVID-19: Anti-crisis Shield Package
3 Employment support: Fund for Guaranteed Employee
Benefits
Employers may apply to the Who is eligible? What does it cover? Practicalities
Fund of Guaranteed The scheme will be open to Companies Working time can be reduced by 20% (to Employers will need to explore any
Employee Benefits (Wages who have suffered a reduction in no less than half-time), with the contractual restrictions upon reducing
Guarantee Fund) for a three economic turnover due to COVID-19. provision that the salaries paid must be working time, and gain approval as
month subsidy of up to 50% higher than the national minimum wage needed, from the union of employees or
Companies that apply must not be in
(PLN 2,600 p/m), after considering the employees representative.
of employee salaries during default for tax or social security
time still worked. The grant will only be
economic halt or reduced contributions, or have previously Employers must also send a copy of the
provided in relation to employees who
working time applied as declared bankruptcy. agreement to the competent district
have had their working time reduced.
labour inspector within five working
result of COVID-19. Reduction in economic turnover is a
The Wages Guarantee Fund will provide days of the agreement being concluded.
decrease in sales of goods for resale or
aid covering 50% of employee wages
services expressed in quantity or value, Workforce planning should be
The scheme will run on a measured as follows:
and associated social contributions, up
undertaken, to determine the reduction
first come first served basis to a maximum of 40% of the average
in time to be applied.
until the available funding • A reduction of at least 15%, when wage per the Central Statistical Office
comparing total turnover for any two for the prior quarter (currently PLN Employers will need to substantiate the
has been exhausted. consecutive months in the period 5,200 p/m). loss of turnover.
between 1 January 2020 and the
These measures do not apply to Employees whose wages are being
The same subsidy is also application date, with the turnover
employees whose salary, in the month funded by the scheme may not be
available for social security for the same two consecutive months
prior to the month in which the terminated during the provision of the
contributions. in the prior year; or
application was submitted, was higher grant.
• A reduction of at least 25% when than 300 percent of the average
Employees must also be retained once
comparing total turnover for any monthly salary announced by the
the financing is complete, for the same
month (deemed to be 30 days) in the Statistical Office for the previous
amount of time as the grant was in
period between 1 January 2020 and quarter (approx. PLN 15.6k gross).
place.
the application date, with the
The remaining compensation to be paid
turnover for the prior month. At present these entitlements are valid
by the employer and must be not less
for a total of three months from the
than the minimum wage.
How is it accessed? date of application. Cash requirements
once these measures expire should be
An application should be made by the considered.
employer to the Wages Guarantee Fund
for pay subsidies and subsidies to Social Applications for the subsidy will be
security contributions. considered on a first come first served
basis until the available funding is
exhausted.
27 April 2020 COVID-19: Anti-crisis Shield Package
4 Cash flow support: Tax deferrals and filing extensions
Deadlines have been Tax payment postponement or Social security contributions Temporary abolition of the
deferred for certain rescheduling Social security contributions may be extension fee
financial and tax filing and Entities negatively affected by COVID- postponed for up to three months or Companies which request an extension
payment obligations. 19 may apply to defer their tax paid in installments by companies to the payment deadline for tax and
payments, or reschedule them to pay negatively affected by COVID-19. social security payments typically suffer
In some cases the deferral via installments. The entity must substantiate the a fee of 4% of the amount payable.
will be applied An application must be made to the tax request by showing how COVID-19 has This fee has been temporarily abolished.
automatically, and in others authorities to do so, following the affected the financial position of the The abolition applies to both tax
procedure set out by the Polish Tax company and its inability to pay social payments and social security
consideration must be made security contributions on time.
Ordinance. Approval must be provided contributions.
as to whether a business is before payments are postponed or This measure does not apply This change is particularly important in
eligible and an application rescheduled. automatically, an application must be case of an entrepreneur requesting the
must be made for the made. The application/request may be
To qualify an entity must substantiate postponement or payment by
measure to apply. its request for tax payments filed in a simplified form – using the instalment of tax liability or social
postponement or rescheduling by electronic services platform of the security contributions
showing the existence of important Social Insurance Institution (ZUS).
This applies automatically, a mechanism
taxpayer interest or public interest. Filing such a request is an effective way has already been put in place to
It is necessary to verify whether the to protect the company and its facilitate the postponement of payment
relief maybe considered to be state aid management board against penalties or without the extension fee being levied.
i.e. whether the aid granted by other fiscal liabilities arising as a result
of the failure to make timely payments. This abolition is limited to applications
government does not distort
filed after the nationwide state of
competition or does not pose the risk of
epidemic crisis was declared and any
distortion of competition, and to
filed up to 30 days after its cancellation.
confirm that it does not affect EU
A state of epidemic crisis was declared
member states trading.
in Poland on 20th March 2020.
Filing the request where tax payment is
not possible is an effective form to
protect the company and its
management board against penal-fiscal
liability for the failure to pay tax
liabilities on time.
27 April 2020 COVID-19: Anti-crisis Shield Package5 Cash flow support: Deferrals and filing extensions
Deadlines have been Corporate income tax reporting Advance payments for personal Financial reporting
deferred for certain The filing deadline for 2019 CIT returns income tax In accordance with the regulations
financial and tax filing and is extended to the end of July 2020 for Advance payments for PIT for March provided by the Ministry of Finance the
payment obligations. certain businesses, including by and April 2020 have been postponed to requirements for certain procedures in
In some cases the deferral hospitals, research centres and non- 1 June 2020. respect of financial reporting have been
profit organizations, and to the end of deferred by up to 3 months.
will be applied May 2020 for all other businesses. If a business has suffered negative
automatically, in others an economic consequences as a result of This applies to private and public sector
application must be made This measure applies automatically, no COVID-19, then they are not required to entities and NGOs and includes
penalties will be levied upon tax returns file any application; the postponement preparation of financial statements,
for the measure to apply. filed before the extended deadline. their auditing by audit firms,
of the deadline for advance tax
payments extends automatically to authorization and making financial
include the given entity. statements available to the public.
The Polish Government
have announced a number Application of JPK-V7M Reporting tax schemes Transfer pricing information
of administrative measures New VAT reporting rules were to be Extension of deadlines for tax schemes The deadline to submit transfer pricing
that postpone the effective introduced, such that reporting for VAT reporting, including the suspension of information for 2019 has been
date for new regulations or purposes will be made as part of one ongoing deadlines, to no later than 30 postponed until 30 September 2020.
JPK_V7M file. June 2020, including the reporting for
extend deadlines to make
the EU Mandatory Disclosure Rules.
certain payments, filings, or The requirement to submit the new
gather relevant information. JPK_V7M file will be postponed to 1 Simplified advances
July 2020. For “small and medium-sized
These measures apply taxpayers”, this implementation “Small taxpayers” (Revenue < €2m) will
automatically unless deadline is unchanged. be able to opt out of simplified advances
otherwise stated. and instead calculate monthly advances
using the basic principle, i.e. on actual
Effective date for new VAT rates income.
The new VAT rates which should have There will be an obligation to disclose
been effective from 1 April 2020 will the basis of calculation in the 2020 tax
now become effective as of 1 July return.
2020.
27 April 2020 COVID-19: Anti-crisis Shield Package6 Cash flow support: Loss carry back
It may be possible to carry Who is eligible? Practical considerations
back losses arising in 2020 Losses of up to PLN 5,000,000 may be • This full benefit of this measure may
as a result of COVID-19 to carried back to the prior tax year, i.e. not be applied until the extent the
deduct these from income 2019 and utilised in that period. impact upon a company’s revenue is
declared in 2019. known, i.e. after the end of the 2020
The loss must arise due to the adverse
tax year.
economic consequences of the COVID-
19 outbreak and a company must meet • However, we recommend companies
the following conditions: expecting to make a loss discuss this
with the tax authorities up front.
• A loss in the tax year commencing
either before 1 January 2020 and • The system will facilitate reducing
ending after 31 December 2019, or tax liabilities for prior tax years
commencing after 31 December based on an expected loss carry
2019 and ending prior to 1 January back, i.e. by making payments using
2021, the basic principle.
• Revenue in the loss-making year will • A final claim should be made by
be at least 50% lower than the correcting the 2019 tax return once
revenue earned in the prior tax year the total loss is known.
27 April 2020 COVID-19: Anti-crisis Shield Package7 Cash flow support: Other cash tax management
The Government has Tax on commercial real estate Exemption from real estate tax Corporate governance
granted powers to district The deadline to pay the minimum tax on Provisions have been introduced which In order to allow companies to operate
and municipal councils to commercial real estate for the months grant district/municipal councils the during limited mobility of corporate
confer exemptions or March – May 2020 has been extended power to exempt entrepreneurs from authority members, the provisions
deferrals in respect of to 20 July 2020. real estate tax (land, buildings and allowing the management and
constructions used for business supervisory boards of all companies to
locally implemented real This option is available to taxpayers who
purposes) where their financial liquidity meet and confer via means of direct
estate taxes. meet all of the following conditions:
has deteriorated due to suffering communication or vote by written ballot
• in a given month the taxpayer negative economic consequences of through other members of management
suffered negative economic COVID-19. or supervisory boards have been
consequences in connection with introduced to Polish Commercial
The municipal councils can introduce
COVID-19 Companies Code, except where the
this exemption for a part of 2020 at
Articles of Association provide
• taxpayer’s revenues in a given month their discretion.
otherwise.
are at least 50% lower than in the
corresponding month in the previous
tax year.
Following the Financing using EU funds What will it cover? Government sponsored liquidity
implementation of the The new instruments financed using EU Aid funds awarded in the form of the On April 8 the Prime Minister of Poland
COVID-19 emergency act funds are to include: new instruments are to be allocated to and the government announced an
on 1 April 2020, Polish finance investments or current additional PLN 100bn (4.5% of GDP)
• Non-returnable subsidies of up to
Government is now working operations, so they may prove an liquidity program for micro,
EUR 800,000;
attractive alternative to external debt small/medium, and large enterprises, to
to offer further forms of • Preferential loans corresponding to a sought on the market. be financed by the Polish Development
support, including the Anti- maximum of 2-year labour costs or Fund. Up to 60% of the financing may be
The new forms of aid can be combined
Crisis Shield 1.1 and 2.0. 25% of turnover for 2019.
with the subsidies already granted to
subject to later default, subject to the
conditions applied (maintaining
This may include further offset the cost of salaries.
employment, continuing business, and
extensions to reporting ratio of lost revenues).
deadlines and tax Further details to be released by
payments. Development Ministry and other
government agencies in due course.
.
27 April 2020 COVID-19: Anti-crisis Shield Package8 Contact
For more information For more information For more information
Tomasz Rolewicz Bartosz Niedźwiedzki Agnieszka Skręt-Bednarz
tomasz.rolewicz@pl.ey.com Bartosz.Niedzwiedzki@pl.ey.com Agnieszka.Skret-Bednarz@pl.ey.com
+48 510 160 490 +48 512 161 027 +48 510 201 242
Natalia Kowalska Aleksandra Pabiańska Łukasz Wilk
natalia.kowalska@pl.ey.com Aleksandra.Pabianska@pl.ey.com lukasz.wilk@pl.ey.com
+48 510 059 172 +48 786 842 193 +48 573 339 217
27 April 2020 COVID-19: Anti-crisis Shield Package9 Global EY COVID-19 Stimulus Response Tracker
Our tracker provides a Key jurisdictions covered by the Response Tracker include:
snapshot of the policy
changes that have been • Australia • Denmark • Malaysia • Sweden
announced in jurisdictions
around the world in
• Austria • France • New Zealand • Switzerland
response to the COVID-19 • Belgium • Germany • Norway • Taiwan
crisis. • Brazil • Greece • Puerto Rico • Thailand
Policy changes across the • Canada • Hong Kong • Singapore • Ukraine
globe are being proposed
and implemented on a daily • China • Indonesia • Slovak Republic • United Kingdom
basis. • Colombia • Italy • Slovenia • United States
The document will be • Cyprus • Japan • South Korea
updated on an ongoing
basis but not all entries will • Czech Republic • Luxembourg • Spain
necessarily be up to date as
the process moves forward.
To download the latest Response Tracker visit:
ey.com/en_us/tax/how-covid-19-is-causing-
governments-to-adopt-economic-stimulus--
27 April 2020 COVID-19: Anti-crisis Shield PackageEY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization please visit ey.com. © 2020 EYGM Limited. All Rights Reserved. ED None SCORE: 00282-162 This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com
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