Entrepreneurs: Anti-crisis shield – preliminary assumptions

On March 18, 2020, Prime Minister Mateusz Morawiecki announced the preliminary assumptions to the action plan to be taken by the state authorities to protect Poland from the effects of the CORONAVIRUS-19 pandemic, the so called „CORONAVIRUS-19” the anti-crisis shield. Detailed statutory solutions are only in preparation and the first information about their content is expected to appear on Friday March 20, 2020 at the earliest.

The anti-crisis shield consists of five pillars:

• Employee Safety – worth PLN 30 billion
• Enterprise Finance – PLN 74.2 billion
• Healthcare – PLN 7.5 billion
• Strengthening the Financial System – PLN 70.3 billion
• Public Investment Programme – PLN 30 billion

The total value of the Package is estimated by the Government at PLN 212 billion, or nearly 10% of GDP.

The key solutions of the Anti-Crisis Shield presented at www.gov.pl are:

• 500,000 micro-businesses with up to 9 employees will be able to benefit from loans of PLN 5,000.
• Possibility for medium and large companies to obtain capital increases or financing in the form of bonds from the PFR Investments fund – total value of PLN 6 billion
• BGK’s interest rate subsidies on loans – from the PLN 500 million Interest Rate Fund for the enterprise sector
• Transport companies will be supported by ARP to refinance their leasing contracts
• You will contribute to the salary of the employees of the companies at the standstill. For companies at a standstill, the state will cover nearly half of their salaries and ZUS contributions
• Parents who take care of children up to 8. and we’ll extend the right to a carer’s allowance,
• Those employed under civil law contracts will be able to benefit from a monthly allowance of about PLN 2.000 gross
• Companies in trouble will be supported in maintaining their employees – the state will finance 40% of their wages
• 100,000 small and medium-sized enterprises will be able to obtain a loan with a de minimis guarantee up to PLN 3.5 million
• Medium and large companies will receive support from PFR Investments for capital increases or bond financing. The total value of support is PLN 6 billion.
• Extension of the deadline for filing a PIT tax return until the end of May
• KUKE trade insurance
• Settlement of the entire loss this year next year
• Postponement of the entry into force of the new JPK – from July 1, 2020
• Postponement of payments for utilities
• Consumer protection.
• Extending the validity of periodic medical examinations.
• Extension of residence visas and temporary residence permits for foreigners.

These solutions are to translate into the following aid for the following categories of entrepreneurs:

A small company:

• Loan 5 000 PLN for microenterprises (with the possibility of redemption)
• Possibility of deferring or spreading the social security contributions into instalments
• Possibility of deferring the payment of PIT, CIT, VAT without additional charges
• Extension of bank working capital loans
• Possibility to provide services for transport
• State funding of 40% of the employee’s salary when the company’s turnover falls
• Credit holidays
• Protection of consumers in respect of excessive price increases and other unfair practices
• Postponement of payments for the media
• Extension of the validity of work permits granted to foreign nationals
• Possibility of deferment of public levies – PIT, CIT, VAT and social security contributions – no charge.

A medium-sized company:

• Co-financing by the State of Parking Facilities
• Extension of BGK de minimis guarantee scheme for SMEs
• Possibility for medium and large companies to obtain capital increases or financing in the form of bonds from PFR funds – Total value of PLN 6 billion
• KUKE trade insurance
• State funding of 40% of an employee’s salary when company turnover falls
• Consumer protection against excessive price increases and other unfair practices
• Postponement of payments for utilities
• Extension of validity of work permits granted to foreigners
• Possibility of deferring public levies – PIT, CIT, VAT, social security contributions – Free of charge and interest

Transport company:

• The company in financial difficulties will have the opportunity to refinance its current leasing contracts together with credit holidays, consisting in postponing the payment of leasing instalments
• Settlement of the entire loss next year – industries particularly affected by the macroeconomic crisis (e. g. transport, tourism), in the situation of a 50% decrease in the company’s revenues in 2020 – in relation to 2019 – will gain the right to reduce their taxable income by the amount of the loss in 2020 through a CIT adjustment for 2019 to the limit of PLN 5 million
• Consumer protection in respect of excessive price increases and other unfair practices
• Postponement of payment for utilities
• Exclusion of border waiting periods from the working time of lorry drivers
• Credit holidays
• Holidays from administrative duties
• State funding of employment
• Parking finance
• Temporary restoration of shop supplies and trade on Sunday
• Prolongation of work permits granted to foreigners
• Possibility of deferring public levies – PIT, CIT, VAT, social security contributions – Free of charge and interest

Tourist company:

• Extension of the period for termination or withdrawal from the tour contract to 180 days. After that time, the customer will receive a refund or a voucher for future use, within one year of the date on which it was to take place.
• Settlement of the entire loss next year – industries particularly affected by the macroeconomic crisis (e. g. transport, tourism), in the situation of a 50% decrease in the company’s revenues in 2020 – in relation to 2019 – will gain the right to reduce their taxable income by the amount of the loss in 2020 through a CIT adjustment for 2019 to the limit of PLN 5 million
• Postponement of payments for utilities
• Credit holidays
• Holidays from administrative duties
• Financing of State employment
• Financing of parking
• Possibility to defer public levies – PIT, CIT, VAT, social security contributions – free of charge and interest

A big company:

• Increased availability of credit – rapid mobilisation of substantial financial resources to support the business sector. The following will be used, among others the following financial instruments:
  5. Liquidity Guarantee Fund for larger companies with up to 80% collateral provided by the banking system
  5. The Capital for Security and Growth Program of PFR. Possibility for medium and large companies to obtain capital increases or financing in the form of bonds from PFR Investments – total value of PLN 6 billion
  5. KUKE trade insurance

• Postponement of the entry into force of the new JPK – only from July 1, 2020
• Possibility of postponing the deadline for payment of the perpetual usufruct fee by the mayor/mayor of the city
• Flexibility of labour market regulations
• Prolongation of validity of work permits granted to foreigners
• Possibility to defer public levies – PIT, CIT, VAT, social security contributions – free of charge and interest.

The Law Firm’s team will inform about the plans for detailed statutory solutions and their entry into force in the following news.