The Protection Package prepared by the Government for business in connection with the epidemic
The session of the Ministerial Council convened by the President on 18 March 2020 gave rise to a draft entitled “Economic and social anti-crisis shield for the security of entrepreneurs and employees in connection with SARS-Cov-2 pandemic”. During the press conference held immediately after the session, President Andrzej Duda and Prime Minister Mateusz Morawiecki presented the conclusions resulting from the proposals planned and discussed. Approximately PLN 212 billion is to be allocated to measures intended to counteract crisis.
The following proposals were mentioned during the press conference:
- the possibility for entrepreneurs to have their social insurance contributions deferred or spread into installments, with no additional fees,
- subsidies to cover remuneration to be paid to employees hired under employment contracts (if the criterion of turnover loss/decrease is satisfied, the State could subsidize 40% of the average salary in Poland),
- subsidies for individuals employed under contracts of mandate or for specific job as well as people who are self-employed (up to 80% of the minimum salary),
- a system of lease payments takeover by the Industrial Development Agency (the ARP) for companies in the transport sector,
- the possibility for CIT payers to deduct the tax loss incurred in 2020 retrospectively from the income for 2019,
- support to ensure liquidity of enterprises, i.e. small and medium-size enterprise will have the possibility to apply for extension of the working capital facility and will have access to micro-loans of PLN 5,000,
- the credit guarantees given by BGK (the National Economy Bank) will be increased to 80%,
- companies will be able to get capital from the Polish Development Fund and take out turnover insurance from KUKE,
- an additional fund will be set up for public expenditure, amounting to ca. PLN 30 billion, in order to give an impulse to the economy by stimulating public investments in infrastructure, roads, hospitals, schools, digitization, power sector, biotechnology,
- the liquidated damages will be waived with respect to entities which are engaged in performance of public procurement contracts and which face problems meeting their obligations,
- The Office of Competition and Consumer Protection (UOKiK) will protect against unreasonable price increases and unlawful practices on the market of cash loans,
- employees will have the possibility to benefit from “loan holidays” in banks (extension of the loans).
- the deadline for filing the annual PIT return will be postponed until the end of June 2020.
- a number of administrative obligations and deadlines will be postponed,
- the Ukrainian workers will have their visas and work permits automatically extended,
- PLN 7.5 billion will be allocated to healthcare, including the financing of medical infrastructure and measures intended to combat the epidemics, the operation of dedicated facilities, increase of imports and production of protective equipment,
- continuation of the care benefit if the break from schools is extended (in addition to the Special Act currently in force, further childcare benefits are planned to be financed).
The draft bills relating to the above proposals are to be published this week. The session of the Sejm during which the above regulations are to be adopted is planned for 25 March 2020. If the session goes efficiently, the regulations can be promulgated and take effect around 27-30 March 2020 at the earliest.
Should you have any questions regarding the proposed solutions and the possibility for you to benefit from them, please contact us.