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Extended advance payment deadlines for certain businesses

2020-12-10

In the Journal of Laws, a regulation of the Minister of Finance, Development Funds and Regional Policy was published on the extension of deadlines for the advance payments of income tax and lump-sum income tax by some payers. These regulations are to be a form of support for businesses on account of the COVID-19 epidemic as well as the restrictions on the performance of certain types of business activities. The extension of the deadlines is to counteract the negative economic consequences for businesses paying personal income tax.

According to the regulation, the payment deadlines are extended for:

  • income tax advances on employment and related relationships and on social security cash benefits paid by the employer;
  • income tax and flat-rate income tax advances on the services provided on account of personally performed activities referred to in Article 13 (8) of the PIT Act (i.e. on account of services performed on the basis of a contract of mandate or contract for a specific task) and those relating to copyright and related rights.

The extended deadlines are:

  • May 20, 2021 - with respect to the advances and flat-rate tax collected in October 2020;
  • June 20, 2021 - with respect to the advances and flat-rate tax collected in November 2020;
  • July 20, 2021 - with respect to the advances and flat-rate tax collected in December 2020.

Notably, the proposed Regulation only concerns the remitters who have suffered negative consequences due to COVID-19, and who conducted certain activities according to Polish Classification of Economic Activities (PKD) as of September 30, 2020. The catalogue encompasses, among other things, retail sale of clothing in specialized stores, retail sale of food, beverages and tobacco products on stalls and markets, restaurants and other permanent catering establishments, photographic activity, activity of sports and fitness improvement facilities, as well as entertainment and recreation activity. According to the estimates of the Ministry of Finance, the regulations cover about 70 thousand entities.

It should be mentioned that the advance payments and the flat-rate tax themselves should be collected by the remitters, in accordance with the regulations in force. The proposed extension of the deadlines only applies to their transfer to the appropriate tax office.

Lastly, it is worth recalling that in accordance with the solutions of the so-called anti-crisis shield, the deadline for the payment of income tax advances and lump-sum income tax collected in March and April 2020 was already extended once - until 1 June 2020. In June, the deadlines were postponed again. The deadlines for the payment of advance payments and the tax collected for March, April and May 2020 were extended intil 20 August, 20 October and 20 December  2020 respectively.

The new regulations came into force on 19 November 2020 – on the day of their publication in the Journal of Laws.

Anna Skórska, Tax Consultant, ATA Tax Sp. z o.o.

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