In recent days, we have received many inquiries related to assistance measures that can be obtained under the laws of the government’s anti-crisis shield. About half of our clients are micro, small and medium enterprises with foreign capital. The situation of such entities is difficult, given the complexity of the regulations. Often interpreting the ambiguities of the anti-crisis act(s) is a challenge for Polish jurists familiar with Polish tax law, the more it seems breakneck from the point of view of foreign entities. Understanding their difficult situation, we decided to introduce the assumptions of the anti-crisis act(s) for the use of our clients and all those for whom Polish is not the first language. The article below presents an outline of the possibilities of assistance offered by the anti-crisis shield for enterprises operating on the Polish market.
It does not contain solutions targeted at employees and self-employed.
LOAN FOR MICRO ENTERPRISES (art. 15zzd)
Qualification:
Micro-entrepreneur status (max. 9 insured persons to social security).
A one-time loan to cover the running costs of doing business granted from the Labor Fund for a micro entrepreneur who operated business before March 1, 2020.
A loan of up to PLN 5,000 with an interest rate of 0.05% per annum, a grace period of three months, with the option of redemption after these three months. In the absence of redemption, to be repaid within 12 months of the grant.
Revenue from the cancellation of a loan does not constitute income within the meaning of the PIT and CIT regulations.
Submission of the application after the announcement of recruitment in local appropriate Labor Office.
EXEMPTION FROM SOCIAL SECURITY CONTRIBUTIONS (art. 31zo – art. 31zu)
Qualification:
An entrepreneur who, as of 29/02/2020 or 31/03/2020 or 30/04/2020 (depending on the date of commencement of the economic activity) has reported:
- max. 9 insured persons to social security – 100% of liability
- 10 – 49 insured persons for social security – 50% of liability
The application should be submitted to ZUS, the exemption can be granted for 3 moths (March, April, May 2020).
In the case of a natural or legal person, income from exemption from contributions (redemption) does not constitute income within the meaning of the PIT and CIT regulations.
If the entity that applies for exemption from contributions has already paid the contributions for March 2020, it is refundable at the entrepreneur’s request.
WAGE SUBSIDIES FOR WORKERS FROM FGŚP AND REDUCTION OF WORKING TIME (art. 15g)
Qualification:
For every entrepreneur and for NGOs, entities conducting charitable activities.
The application should be submitted to Voivodeship Labor Office.
Main conditions:
- turnover decreased by 15% (according to Criterion A) or by 25% (according to Criterion B)
- Criterion A consists of comparing two consecutive months in 2020 to two months in 2019
- Criterion B consists of comparing 1 month in 2020 to the previous month in 2020.
- decreases in turnover are a consequence of COVID-19
- an agreement should be concluded with the employees, in the manner described in art. 15g paragraph 11 of the Act; District Labor Inspector should be notified about the agreement
- in accordance with the concluded agreement, the employee has reduced working time for reasons that do not apply to him
- the entrepreneur is not in arrears in payment of tax, social security, health insurance, FGŚP, Labor Fund and the Solidarity Fund (as per the end of the third quarter of 2019)
- there are no reasons to declare bankruptcy of an entrepreneur
- the remuneration to be co-financed cannot be higher than approx. PLN 15,000 gross. The reference point is the remuneration obtained in the month preceding the month in which the application was submitted
- reduction of salary to up to 50% if the employee does not work and / or reduction of working time by 20%
- to get funding, entrepreneur must first reduce working time for specific employees
When the working time is reduced, for each employee we will receive no more than 50% of the employee’s „new” remuneration, but it may not be higher than 40% of the average monthly remuneration for the first quarter of 2020, announced by the Central Statistical Office, i.e. about PLN 5,000 (which is approx. PLN 2000). Remuneration is not provided for period longer than 3 months.
INTRODUCTION OF DOWNTIME AND DOWNTIME TIME PAY (art. 15g)
Qualification:
For each entrepreneur and for NGOs, public benefit entities.
The application should be submitted to Voivodeship Labor Office.
Main conditions:
- turnover decreased by 15% (according to Criterion A) or by 25% (according to Criterion B)
- Criterion A consists of comparing two consecutive months in 2020 to two months in 2019
- Criterion B consists of comparing 1 month in 2020 to the previous month in 2020.
- decreases in turnover are a consequence of COVID-19
- an agreement should be concluded with the employees, in the manner described in art. 15g paragraph 11 of the Act; District Labor Inspector should be notified about the agreement
- in accordance with the concluded agreement, the employee does not perform work for reasons that do not apply to him (economic downtime)
- the entrepreneur is not in arrears in payment of tax, social security, health insurance, FGŚP, Labor Fund and the Solidarity Fund (as per the end of the third quarter of 2019)
- there are no reasons to declare bankruptcy of an entrepreneur
- reduction of salary to max 50% if the employee does not work
Thanks to funds from the FGŚP, the employer will receive co-financing for remuneration in the period of downtime in the amount of 50% of the minimum salary plus social security contributions due from the employer on the benefits granted, i.e. PLN 1 533,09 with possible modification due to the amount of working time. Remuneration is not provided for period longer than 3 months.
CO-FINANCING OF SALARIES FOR EMPLOYEES FROM THE GOVERNOR OR THE PRESIDENT OF THE CITY (art. 15zzb)
Qualification:
Status of an entrepreneur.
Submission of an application within 14 days after the announcement of recruitment in local Labor Office.
Main conditions:
- there was a decrease in turnover by at least 30% or 50% or 80% according to the criterion (the criterion of turnover decline is the comparison of turnover from two consecutive months in 2020 to turnover from two corresponding months in 2019), a higher turnover decrease results in higher funding, these do not have to be calendar months
- decreases in turnover are a consequence of COVID-19
- the entrepreneur is not in arrears in payment of tax, social security, health insurance, FGŚP, Labor Fund and the Solidarity Fund (at the end of the third quarter of 2019)
- there are no reasons to declare bankruptcy of an entrepreneur
With a turnover decrease of at least 30%, the entrepreneur will receive no more than the amount corresponding to 50% of the salary, but not more than PLN 1,300 gross (50% of the minimum remuneration for work) per employee. In addition, we will receive co-financing for social security, which the employer pays for the employee. With a higher decline in turnover, funding is higher.
Remuneration is not provided for period longer than 3 months.
The tax regulations have also changed, below we present a list of the most important changes in our opinion:
- Possibility of retroactive settlement of tax losses in PIT and CIT.
- Possibility of „small taxpayers” giving up simplified method payments for CIT or PIT for the period of March – December 2020.
- Resignation from the prolongation fee in connection with postponing the tax payment deadline. Exemption from the obligation to pay it will continue during the epidemic period and in the 30 days immediately following its cancellation.
- Discount for donations made to fight coronavirus, deduction in PIT and CIT tax without any limit for donations (in cash or in kind) made for purposes related to preventing and combating coronavirus infection for healthcare providers.
- Suspension of retail sales tax for the July – December 2020 accounting periods.
- Postponement of the deadline to pay tax on revenues from buildings. In accordance with the assumptions of the anti-crisis shield, taxpayers will be able to benefit from the postponement of the deadline for payment of tax on income from buildings (i.e. the so-called minimum tax on commercial real estate) for the months March-May 2020 to 20 July 2020.
The article includes a description of the premises of the COVID-19 Act. It does not constitute a study in the scope of additional requirements, in particular in the scope of requirements for de minimis aid resulting from Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Art. 107 and 108 of the Treaty on the Functioning of the European Union for de minimis aid.
The article is not a substitute for legal advice.
The legal status is current as at 22.04.2020.