The COVID -19 business aid package ("the "Business Aid Package" or the "Package")

The COVID -19 business aid package ("the "Business Aid Package" or the "Package") has been presented by the Polish Government on Wednesday, 18 March 2020.

The Package is divided into five main sections:
1.    work safety and labour law;

2.    corporate finance;

3.    health care;

4.    strengthening the financial system;

5.    public investment programme.

It has been estimated that it will cost the Polish Government circa 212 billion Polish zlotys.

The Package provides, inter alia, the mechanism to postpone the payment of the Social Insurance payments (ZUS) and perhaps also taxes.

The State promised to take over the financing of the part of the remuneration in companies and proposed a one-off payment of PLN 2.000 (circa EUR 440) for the self-employed. Not too much to be honest.

The Prime Minister announced also that for entrepreneurs who meet the criteria, the state will cover 40% of employees' wages up to the average wage in the economy. On the other hand, the self-employed, persons on individual contracts and in the situation of a drop in income will receive a one-off benefit of about PLN 2.000.

The Package is also to provide that employees can take so called credit extension in banks e.g. with mortgages or revolving loan. Polish taxpayers may also benefit from postponing the deadline for the annual tax declarations until the end of June 2020 (before CIT was by the end of March and PIT by the end of April).

The Package includes anti-usury practices and bad faith behaviour, including fighting against prices that are higher than should be. This is to eliminate speculators and entities or individuals, with intentions to make money from the crisis in bad faith.

More info on special legislation in Poland to follow.