COVID-19 – no tax to be collected on aid from the Financial Shield

by Joanna Litwińska

23 July 2021

The Minister of Finance signed on 16 July 2021 a regulation waiving the tax on income derived from forgiven subsidies from the Polish Development Fund (PDF).

The content of the regulation

The regulation is addressed to enterprises which are beneficiaries of the financial support obtained under Shield 1.0 and Shield 2.0 of the PDF. As a rule, they should treat the value of the forgiven liabilities on account of the subsidies as taxable income.

According to the Ministry, expenses covered by the subsidy may be included in tax-deductible costs on general principles also if no tax is collected on income from the forgiven subsidy.

Tax will not be collected on revenue (income) earned between 1 June 2021 and 31 December 2022.