„Tarcza 4.0” public aid – changes to income taxes

Since June 24, 2020, the act introducing another public aid package in connection with the pandemic, commonly known as “Tarcza 4.0”, has been in force. Some instruments relate to income taxes. Below are the most important of them:

1. Exemption from income tax on buildings (so-called minimum tax) for the period from March 1, 2020 to December 31, 2020.
2. Referencing to so-called “relief for bad debts” in income taxes (used in cases where the debtor is late with payments recognized to income by the creditor), the period from the date of payment, after which the creditor has the right to correct settlements, has been changed from 90 days to 30 days.
3. Contractual penalties and damages resulting from defects or delays, arisen in connection with the pandemic, can be included in the tax-deductible costs.
4. Taxpayers are entitled to deduct donations to some social assistance institutions (e.g. social welfare centers, shelters for the homeless) and to educational institutions (in the form of portable computers) from the tax base. The deduction is: 200% of the value of the donation – if it was transferred by April 30, 2020, 150% – if it was transferred in May 2020, 100% – if it was transferred in June-September 2020.