The current coronavirus pandemic has hit Polish entrepreneurs and employees in a very painful way. Apart from the decrease in revenue and the practical difficulties with conducting the business, entrepreneurs have to face the necessity of incurring fixed costs, which include real estate tax. In the case of many companies, especially production or processing companies, the cost of this tax can be a very painful charge during a recession.
Benefit from anti-crisis shield
The Act on the so-called “anti-crisis shield” introduced provisions extending the competences of local government authorities in the field of granting real estate tax exemptions.
As indicated in the act, the municipal council may introduce, by way of a resolution, for part of the year 2020, exemptions from the real estate tax: land, buildings and structures related to doing business, to indicated groups of entrepreneurs whose financial liquidity has deteriorated due to incurring negative economic consequences due to COVID-19.
In addition, the municipal council may, by way of a resolution, extend the deadlines for payment of real estate tax instalments, payable in April, May and June 2020, to designated groups of entrepreneurs whose liquidity has deteriorated due to negative economic consequences due to COVID-19, not longer than until 30 September 2020.
Communicate with the Municipalities
It is worth noting that local government authorities may not be fully aware of the poor financial situation of the companies on their municipality. It is therefore recommended that entrepreneurs make the authorities aware of their problems, which may increase the chance of introducing a tax exemption or deferral.
Apply for exemption
Polish regulations provide also possibility to apply for exemption or deferral of real estate tax, such application may be justified with the important interest of the applicant, based on our recent experience decrease of revenue may be a solid argument to convince the tax authorities to apply the exemption.
Our consultants are ready to support you in preparation of application for relief during this difficult times.
CONTACT
Piotr Zając
Partner and Managing Director | Advisory
E-mail: piotr.zajac@accace.com
CONTACT
Piotr Rzepka
Tax Consultant
E-mail: piotr.rzepka@accace.com
