The deadline for CIT settlements will be extended

The Sejm is currently working on an amendment to the Excise Duty Act and certain other acts and a draft bill amending the Customs Law and certain other acts. The amendment adopted by the Committee for Public Finance provides for a 3-month extension of the deadline for filing CIT for 2020 and paying the tax. Companies will have to settle CIT until 30 June 2021 (the previous deadline was 31 March 2021).

The extension is to apply to taxpayers whose tax year ends between 1 December 2020 and 28 February 2021.

According to announcements of the Ministry of Finance, this change will not only provide companies with more time to prepare their tax returns, but at the same time will improve their financial liquidity.

Extension of the validity of certificates of residence

During works over amending tax acts, an amendment concerning tax residency certificates was adopted. Such certificates are necessary for Polish payers to collect a reduced withholding tax rate on certain payments being made abroad or to claim exemption from this tax.

Due to the difficulties in obtaining tax residency certificates by foreign counterparties caused by the pandemic, there are plans to extend the validity of residency certificates issued in 2020 and declare them valid also in 2021. The extension of the validity period will require a declaration from the counterparty that the certificate in question is up to date.

The same solution allowing the use of certificates of residence issued in 2019 did apply in the previous year.