Tax relief and additional funding programmes –
- where and how to find support for your business
during the pandemic?
Although it has been a year since the pandemic outbreak was officially declared in Poland, entrepreneurs are still struggling with a difficult economic situation, trying to keep their businesses afloat despite the existing restrictions. In order to support them, the government offers a wide range of additional funding and tax relief programmes.
As the situation changes rapidly, you should make sure to stay up-to-date with the existing assistance programmes. Find out which elements of the Anti-Crisis Shield programme are available to your business and where to find support.
The Anti-Crisis Shield programme – the support for Polish entrepreneurs
Assistance programmes are meant to help Polish entrepreneurs meet their businesses’ essential needs. The governmental assistance is directed both at sole traders and big companies looking for a way to endure this difficult situation. Depending on the type of business and their individual needs, the methods of assistance will differ. Entrepreneurs may choose to benefit from the tax relief, gain additional funds for their employees, reduce operating costs, receive a specific amount of funding to keep their business afloat, extend the date of payment or benefit from a variety of other aids available within the Anti-Crisis Shield programme. But which methods of assistance are used most often?
A 3-month exemption from social insurance contributions
The assistance programmes include a partial or full exemption from paying social insurance contributions to the Social Insurance Institution (ZUS). An entrepreneur is entitled to a three month period (indicated by the entrepreneur) of exemption from paying contributions to ZUS. However, there are certain conditions stipulated in Article 31zo-31zx of the Covid-19 Act, which must be met in order to be eligible for the exemption.
The idle time pay for entrepreneurs conducting business activity
Entrepreneurs can also apply for an idle time pay, which includes financial support as means of compensation for the lost income. If the financial situation of a company remains unchanged, an entrepreneur can apply for another type of a benefit. This kind of assistance is available only for certain types of businesses, therefore, before applying for the benefit, remember to check whether you company meets the eligibility criteria.
Loans for microbusinesses
An interesting solution is a low interest rate loan for microbusinesses. The 5,000 PLN loan is provided from the Labour Fund means, and it can be used to keep the business afloat, settle debts or pay remuneration to employees. Entrepreneurs have 12 months to repay the loan, but this payment term can be extended in justified cases.
COVID-19 tax relief
Due to the pandemic, there are additional tax reliefs for entrepreneurs which can be applied when paying tax for the previous fiscal year. These tax reliefs include deducting documented donations for combating COVID-19. Similar solution was adopted for businesses operating at a loss due to the pandemic. The only requirement is to show proof that economic activity conducted in 2020 provided a far lower income than in 2019. Such type of a loss in the time of pandemic can be the basis for the said tax exemption.
Additionally, income from research and development intended for combating COVID-19 can also be deducted from the tax base for the year 2020. In such a case, the tax base is decreased to 5%.
Supporting businesses during the pandemic
The scope of the financial assistance needed varies from business to business and depends on various factors. When searching for the most adequate assistance programme for your business consider the government’s suggestions. All information required to apply for additional funding or tax relief programmes can be found via a search engine available on the gov.pl website.