18.11.2020 Taxes

[Poland] Extended deadline for the payment of PIT for companies affected by the pandemic

The Ministry of Finance has announced a project extending by half a year the deadline for the payment of PIT advances and flat-rate income tax by the taxpayers most affected by the COVID-19 pandemic.

The obligation to make advance payments for income tax and the flat-rate tax to the tax micro-account applies to contribution payers, including entrepreneurs, also those running sole proprietorships. Due to the pandemic, the deadlines for advance payments were postponed twice: in March and June this year, and another change is now being planned.

Extension of deadlines – what advances?

The Minister of Finance is now proposing a further extension of the deadlines for the payment of PIT advances and for flat-rate income tax, more specifically for advance payments for:

  • income tax on income under the employment relationship and related relations and social security cash benefits paid by a company,
  • income tax on benefits provided in connection with the activity performed personally and on income/revenue from copyright and related rights.

What are the deadlines?

The draft regulation of the Minister of Finance, Funds and Regional Policy provides for the extension of the deadlines for the payment of advances:

  • for the tax charged by payers in October 2020 until 20 May 2021
  • for the tax charged by the payers in November 2020 until 20 June 2021
  • for the tax charged by the payers in December 2020 until 20 July 2021

Who will be covered by the regulation?

The new regulation is intended to cover only payers and taxpayers affected by the negative consequences of COVID-19, who, as of 30 September 2020, have run business activities listed in the regulation, including, inter alia, the following ones:

  • restaurants and other permanent catering facilities,
  • activities related to the organisation of fairs, exhibitions and congresses,
  • sports facilities,
  • amusement parks and theme parks,
  • retail sale of clothing in specialised shops,
  • service activities related to the improvement of physical condition.

However, not all businesses that have suffered losses as a result of the introduced restrictions and restrictions are included in the new regulation. Hotels, film clubs and cinemas, for example, will not benefit from the possibility of extended advance payments` deadlines, but they have been forced to temporarily suspend or significantly reduce their operations.

Here is the list of Polish Classification of Activities (PKD) codes for activities, eligible to benefit from the extended deadlines, listed in the draft regulation: 47.71.Z, 47.81.Z, 47.82.Z, 47.89.Z, 56.10.A, 56.10.B, 56.29.Z, 56.30.Z, 59.11.Z, 74.20.Z, 77.21.Z, 82.30.Z, 85.51.Z, 86.90.A, 86.90.D, 90.01.Z, 90.02.Z, 93.11.Z, 93.13.Z, 93.19.Z, 93.21.Z, 93.29.A, 93.29.B, 93.29.Zi96.04.Z.

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