Update on Anti-Crisis Shield

On Tuesday, March 31 2020, the Sejm of the Republic of Poland passed the Anti-Crisis Shield – a package of law that aims at limiting the negative effects of the coronavirus pandemic and is valued at PLN 212 billion. Despite many amendments by the Senate which assumed an increase in state aid for entrepreneurs, almost all of them, except for minor corrections, were rejected, e.g. the proposal for financing the companies downtime in the amount of 75% of the employee’s current remuneration or the exemption from social security (ZUS) contributions also for small and medium-sized enterprises. The Sejm also rejected the proposal of removing from the anti-crisis shield provisions amending the Electoral Code.

President of Poland Andrzej Duda has signed the act the same day and most of the regulations have already entered into force on April 1, 2020. The signed Anti-Crisis Shield includes e.g.:

• Postponement of the obligation to submit a new JPK_VAT file for large companies from April 1 to July 1, 2020,
• Release of micro-enterprises to nine persons and self-employed from (ZUS) contributions for 3 months,
• Co-financing of employment during the entrepreneur downtime up to 50% of minimum remuneration for three months,
• Possibility of limiting a given employee’s working hours by 20%, not more than 0.5 full-time employment, with the state subsidizing up to 40 % of the remuneration for three months,
• Disposable down-time pay for self-employed people or employees on a civil law contract in the amount of 80% of the minimum wage,
• An automatic extension of work permits for foreigners,
• Temporary abolition of the prolongation fee in tax and social security claims,
• Introduction of the deadline extension for the employer to submit advance tax payments on income from broadly understood work collected in March and April to 1 June 2020,
• Possibility of the retroactive settlement of tax losses in PIT and CIT,
• Entitlement of the Council of Ministers to issue a regulation based on which administrative enforcement proceedings will be suspended,
• Possibility to suspend tax audits, tax proceedings, customs and tax audits for the duration of the epidemic,
• De minimis guarantees from BGK and subsidies for interests.

We know that the government is already working on phase II legislation to support business in Poland during this crisis. AmCham will continue to advocate for workable solutions for investors to maintain their business activities in Poland at levels that will ensure employment in the long-run. We appreciate the input and feedback we are continuously collecting from our members.

We will keep you informed of all developments.