A subsidy from the PFR does not constitute tax revenue
The financial subsidy received by the taxpayer under the government program for SMEs in connection with combating the effects of the pandemic in Poland is not tax revenue. It concerns the financial support from the Polish Development Fund (PFR) provided under the government’s ‘Anti-Crisis Shield’. This was confirmed by the Director of National Treasury Information in an individual interpretation of 29th September 2020, ref. 0013-KDIPT2-3.4011.637.2020.3.MS. However, the subsidy may be recognised as a deductible cost. Also, in the event of possible loan redemption, it will be conceivable to recognise the expenditure is tax-deductible.
However, it should be noted, although the mere fact of receiving a financial subsidy is tax neutral, its redemption will constitute tax revenue for the taxpayer, PIT or CIT respectively. Such individual interpretation was advocated by the Director of the Information Centre of the Polish Ministry of Finance on 30th October 2020, file 0115-KDIT3.4011.434.2020.3.AWO.
If you have any questions regarding this topic or if you are in need for any additional information – please do not hesitate to contact us:
GETSIX TAX & LEGAL
Aneta Majchrowicz-Bączyk
Partner / Attorney at law (PL)
Specialisation: Tax law
getsix Tax & Legal
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