On March 31, 2020 the Parliament has finished the legislative work on the project of “Anti-crisis Shield” the act which aims to mitigate the economic consequences of COVID-19. The President has signed that act which went live on April 1, 2020.
Social security relief
Covering by the state social security contributions for the period of 3 months due from:
- micro-entrepreneurs employing up to 9 persons;
- self-employed entrepreneurs.
Benefit in the amount of up to 2,080 PLN – for those employed under a mandate or specific task contract and self-employed.
Subsidy for employees’ remuneration
Medium, small and micro entrepreneurs may apply to conclude an agreement with the local government (starosta) under which they will receive a subsidy for the employees’ remuneration. The subsidy level is based on the reduction of turnover and ranges from 50% up to 90% of the employment costs.
Co-financing employees’ remuneration
Co-financing employees’ remuneration for companies whose turnover dropped down due to COVID-19 in two situations:
1. Economical standstill
This is a situation when employees do not work due to reasons not attributable to them. According to the adopted act in such case the employer may decrease the salary of employee but not more than 50% and not below minimum salary (currently PLN 2600 gross). The government can cover 50% of the minimal salary (PLN 1300 gross).
2. Reduced working hours
Employer whose turnover decreased due to COVID 19 may decrease working hours by max. 20% and no more than up to 0.5 of the standard working time. The salary cannot be lower than minimum salary. In such case government can pay half of the salary but not more than 40% of the average monthly salary from previous quarter (PLN 5198,58 in 4th quarter of 2019).
In both cases the employer shall not pay his part of social insurance contributions from the government benefits.
The benefits can be awarded not only to employees but also to people on civil law agreements.
The government pays its part of the salaries for the period of max. 3 months since the agreement is concluded.
More flexible working time
The employer affected by the effects of the coronavirus epidemic will be able to reduce the employee’s daily uninterrupted rest time from the current 11 hours to 8 hours (with a guarantee of giving the employee equivalent rest within 8 weeks), and the weekly rest period from 35 to 32 hours. In agreement with trade unions or when there are no unions with employee representatives – he will also be able to extend the daily working time to 12 hours (equivalent working time system) and the reference period to a maximum of 12 months.
More favourable rules of loss settlement
Enabling CIT and PIT taxpayers who bear the negative consequences of COVID-19 to deduct the loss incurred in 2020 from operating income generated in 2019. The condition is to achieve in 2020 – compared to 2019 – lower revenues by at least 50%.
Favourable rules for tourism
Extending the deadline for reimbursement of customer payments in the event of inability to organize the event due to an epidemic from 14 to 180 days from the termination of the contract.
Opportunity to provide customers with vouchers for the implementation of a tourist event within a year of the day on which the event was to be cancelled due to counteracting COVID-19. If the customer accepts the voucher the tourist agency is free of the obligation to refund cancelled event.
- Enabling deduction of donations given to counteract COVID-19 from income.
- Suspension of mutual obligations under rent/let agreements in shopping malls, as long as these facilities are prohibited from operating normally.
- Possibility of withdrawing from contractual penalties for delay in public tenders.
- Extension of residence visas and temporary residence permits for foreigners.
- Advance payments for income tax on remuneration paid in March and April 2020 shall be paid until June 1, 2020.
- New JPK_VAT file for large companies (declaration and records) is moved from April 1 to July 1, 2020.
- VAT matrix is moved from April 1 to July 1, 2020.
- Obligation to create Employee Capital Plans in medium-sized enterprises is moved to October 1, 2020.
- Obligation to register Ultimate Beneficial Owners for companies registered prior to October 13, 2019 is moved until July 13, 2020.
- Extension of the deadline for submitting information on transfer prices to September 30, 2020.
- Extension of the deadline for submitting a notification of payment to an account not included in the list of VAT taxpayers referred to in art. 96b paragraph 1 of the VAT Act from 3 days to 14 days.
- Postponing the date of entry into force of legal solutions regarding the equalization of the legal position of small entrepreneurs and consumers from 1 June 2020 to 1 January 2021.
- Retail tax shall come into force as of January 1, 2021.
- Extending the period of preparation of paper waste record documents to December 31, 2020.