Tax customs & excise /

Changes to PIT in relation to COVID-19

The Act is amended as follows:

  • The submission to the tax authority of a statement of the amount of income earned (loss) for 2019 and payment of the tax due after the deadline for its submission, but no later than May 31, 2020, is tantamount to the submission by the taxpayer of a notice of a prohibited act (active regret). In such a case, the authority shall not initiate proceedings for the fiscal offence and shall discontinue those proceedings.
  • Under certain conditions and restrictions, taxpayers will have the possibility to reduce the loss in 2020 from non-agricultural business activities by the income earned in 2019 from non-agricultural business activities. The reduction will only be made by submitting a correction to the 2019 statement.
  • The limits of PIT-free quotas have been increased for the following benefits:
    • other aid paid from the funds of the company or inter-company trade union organisation to employees belonging to that organisation, up to a maximum amount of PLN 3,000 in a tax year
    • for aid received in the case of individual random events, natural disasters, long term illness or death: from the so-called „aid for the protection of the environment” other sources up to PLN 10 000
    • the value received by the employee in connection with financing of social activities referred to in the Social Benefits Fund up to PLN 2000
    • subsidies for recreation, etc. for children and young people up to 18 years old. financed from the so-called other sources up to the amount of PLN 3000
    • PIT-free are also: parking benefits, benefits consisting in accommodation and meals referred to in Article 15x § 3 point 1 of the COVID-19 Act.
  • The tax base, including the calculation of the advance payment, will be able to deduct the previously unaccounted for donations made from January, 1 2020 to September 30, 2020 for medical entities, AMR, CBRS-P. The condition is the objective to counteract COVID-19, etc. The rules indicate the amounts to be deducted. The deduction may also be used by flat-rate tax payers (19%)
  • Payers who have suffered negative effects of COVID-19 may pay PIT advances from their business relationship etc. until June 1, 2020 from March and April 2020
  • Under certain conditions, taxpayers of fixed asset tax on a building may pay advances for March, April, May 2020 until July 20, 2020.
  • Once the relevant economic criteria are met, debtors referred to in the bad debt relief are not obliged to increase their income after 90 days
  • Small taxpayers may opt out of the use of PIT/CIT advances in a simplified form
  • One-off depreciation may be made on fixed assets which have been acquired to produce goods related to the COVID-19 counteraction. Such depreciation shall not be counted up to the limit of the one-off depreciation referred to in Article 22k of the PIT Act/ art. 16k of the CIT Act (equivalent of 50,000 euro)
  • Eligible costs for B + R activities related to COVID-19 can be deducted already paid in advance – IP Box related to COVID-19 can be used during the tax year – For taxpayers whose tax year is different than the calendar year the deadline for submission of transfer pricing information has been extended to September 30, 2020
Author team leader DKP Legal
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