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Poland

Paul Hastings in collaboration withWKB Lawyers
Liquidity Measures
Tax Relief
Insolvency Measures

Liquidity Measures

Commercial loans

Government Measure

Ability to change the terms and conditions or repayment date of credit (loans) granted before 8 March 2020 (but only upon parties mutual consent). Such changes may include extension or modification of the terms of already granted loans, notwithstanding the potential loss of creditworthiness of their existing client and such modification can only be made for the benefit of the borrower. However, the banks retain the right to terminate credit (loan) agreements.

 
Eligibility

All borrowers which concluded a credit (loan) agreement under Polish Banking Law with a Polish bank before 8 March 2020.

 
Supervising Authority

KNF (The Polish Financial Supervision Authority). The KNF has recommended potential renewals of financings should not be made for a period longer than one year. KNF has allowed banks to take simplified positive liquidity forecasts into account if they increase the amount of financing to existing customers above the level available on 31 December 2019

 
Availability

From 1 March 2020

Preferential loans for businesses

Government Measure

The National Bank of Poland is granting PLN 100b to all businesses in the form of a preferential loan. Loans will be granted for average period of 3 years with some of the funds being non-refundable after fulfilling certain conditions.

 
Eligibility

All companies registered in Poland are eligible if they fulfil certain conditions, such as decrease in revenues, etc.

 
Supervising Authority

PFR (Polish Development Fund)

 
Availability

Available from May 2020.

Financial support provided by the BGK

Government Measure

Possibility for the Bank Gospodarstwa Krajowego (BGK) to grant guarantees to the benefit of the banks financing medium and large businesses.

BGK guarantees up to the maximum amount of 80% of the loan amount.

The maximum amount of a credit facility (principal only) covered by the guarantee is PLN 250m.

Guarantee may be granted for 27 months provided it is no longer that the term of a credit facility plus 3 months.

Guarantee applies for new loans, as well as for renewals of existing overdrafts and revolving credit lines concluded after 1 March 2020.

 
Eligibility

Medium and large companies1 that have not been declared bankrupt or in respect of which no restructuring proceedings have been issued, and do not have arrears with respect to payments due to tax offices, social security office, nor to the financing banks. The measure is open to all sectors.

1 Under the Polish Entrepreneur Law, a medium enterprise is a company that has met all of the following conditions in at least one of the last two financial years: (i) had an average annual employment from 50 and fewer than 250 employees and achieved an annual net turnover from the sales of goods, products, and services and from financial operations more than PLN equivalent of €10m and not exceeding the PLN equivalent of €50m, or the total assets in the company’s balance sheet prepared as at the end of one of those years exceeded the PLN equivalent of €10m and did not exceed €43m.

A large enterprise is defined as a company that has met all of the following conditions in at least one of the last two financial years: (i) had an average annual employment of 250 employees or more and achieved an annual net turnover from the sales of goods, products, and services and from financial operations exceeding PLN equivalent of €50m, or the total assets in the company’s balance sheet prepared as at the end of one of those years exceeded the PLN equivalent of €43m.

 
Supervising Authority

BGK, however it is granted through a credit institution.

 
Availability

From April to the end of 2020

Support to businesses from the Industrial Development Agency (ARP)

Government Measure

Various forms of reimbursable support - among others, loans, guarantees, sureties.

Goal: to ensure financial liquidity for the duration of the state of epidemic threat or state of epidemic; for a period of 12 months following the revocation of this state; until the negative economic effects are resolved.

Amount and type of support varies depending on the actual financial consequences suffered by the business in connection with the declaration of a state of epidemic threat or state of epidemic, as well as the scale of the business activity undertaken.

Prohibition on the use of support granted to repay liabilities to, among others, parent companies and subsidiaries.

 
Eligibility

Available to all businesses in difficult financial situations as a result of COVID-19.

Not available to companies which have been declared bankrupt or in respect of which restructuring proceedings have been opened, or for which applications to open such proceedings have been filed (more details in the section on restructuring and bankruptcy).

 
Supervising Authority

ARP(Industrial Development Agency)

 
Availability

From April 2020 Applications processed without delay - within 14 days

Support to businesses from the operational programmes 2014 – 2020 (EU funds) in the form of financial instruments

Government Measure

Returnable instruments (e.g. loans, guarantees and sureties) may be granted to eligible companies either for working capital or investment purposes. Support for maximum period of 6 years

 
Eligibility

Available for all businesses, except for those that have been declared bankrupt or in respect of which restructuring proceedings have been issued), and provided that they do not have arrears with respect to payments due to tax offices, social security office, or to the financing banks

May be granted either for working capital or investment purposes

 
Supervising Authority

Each entity implementing the financial instrument (loan, guarantee or surety) financed from EU funds such as Bank Gospodarstwa Krajowego (BGK), National Fund for Environment Protection, or Polish Agency for Enterprise Development.

 
Availability

Until the end of 2020

Tax Relief

Taxes

Government Measure

Extension of the deadline to draft and approve annual financial statements by 3 months (where the financial year is concurred with the calendar year, these statements should be drafted by the end of June 2020 and approved by the end of September 2020).

Deferral of the obligation to pay PIT advances on remuneration collected in March and April 2020 until 1 June 2020.

Taxpayers who will suffer a tax loss in 2020 due to COVID-19 and who obtain total revenues in the 2020 financial year at least 50% lower than in 2019 will be able to make a one-time reduction in the earned income for 2019 by the amount of this loss, up to a maximum of PLN 5m.

Taxpayers who meet specific conditions will be able to benefit from a postponement of the deadline for payment of tax on revenue from buildings for March-May 2020 until 20 July 2020.

Other changes concerning taxes: including VAT, PIT and CIT, tax audits and accounting (Further information is available here).

 
Eligibility

All businesses registered for taxes in Poland

 
Supervising Authority

Ministry of Finance

 
Availability

From March 2020

Insolvency Measures

Restructuring and bankruptcy

Government Measure

Suspension of the deadline to file an application for bankruptcy.

Applications for the opening of restructuring proceedings included in the catalogue of urgent cases which the courts may resolve during the state of epidemic (Read more here).

 
Eligibility

Changes regarding the deadline to file for bankruptcy apply only to debtors who are insolvent due to COVID-19

 
Availability

Extension for bankruptcy available from 13 April 2020.

Restructuring proceeding applications included from 18 April 2020.

Competition law

Government Measure

Support and relief in the form of state aid including, among others, sureties and guarantees, loan repayments and tax exemptions.

Broad potential for state interference in companies’ pricing policies. High fines may be imposed for prices or margins higher than those set by the minister of the economy.

The Regulation of the Ministry of Development on the maximum wholesale and retail margins applied in the sale of particular personal protective face masks is to be introduced.

 
Eligibility

All companies

Generally, state aid will be available to companies that have not been declared bankrupt and in respect of which no restructuring proceedings have been issued), and do not have arrears with respect to payments due to tax offices, social security office, nor to the financing banks.

 
Supervising Authority

Sureties and guarantees: Bank Gospodarstwa Krajowego (BGK)

Regulations establishing maximum prices have yet to be issued. However, the minister has the power to interfere in sectors essential for the protection of human health or safety or household living costs, including:

  • Agricultural and Food Quality Inspection;
  • Trade Inspection,
  • The President of the Office of Competition and Consumer Protection (UOKiK).
 
Availability

From 31 March 2020

Operation of commercial companies

Government Measure

New rules for remote participation and the adoption of resolutions at shareholders' meetings and meetings of other company corporate bodies.

Extension of the deadline to draft and approve financial statements.

Extension of the deadline for the first registration of beneficial owners in the Central Register.

New regulations concerning adoption of resolutions by supervisory boards on matters for which the articles of association or statute of the company provide for secret ballot.

Change in the method of subscription for shares in joint-stock companies.

Modification of liability of members of the company’s corporate bodies.

Pending legislative process completion:

Extension of the deadline for fulfilling obligations related to share dematerialisation in joint-stock companies and limited joint-stock partnerships.*

* In the legislative process – NOT YET IN FORCE

 
Eligibility

All commercial companies

 
Availability

From 18 April 2020