Redeemed amounts from PFR tax-free
The Minister of Finance has signed a regulation thanks to which no income tax will be levied on redeemed subsidies from the financial shield, which were paid out by the PFR. We have already informed about the idea itself.
– The solution provided for in the regulation will be used by entrepreneurs, beneficiaries of support under Shield 1.0 and Shield 2.0 of the Polish Development Fund, for whom the value of redeemed subvention liabilities constitutes, in principle, tax revenue. Waiver of tax collection will apply to income (revenues) obtained by taxpayers between 1 June 2021 and 31 December 2022. – indicates Adam Allen, tax advisor, partner in Thedy & Partners.
It is also worth remembering that the waiver of tax collection will not deprive the taxpayers of the possibility to include the expenses covered by the subsidy to tax costs, in accordance with the general rules.
– The abandonment of tax collection on remitted support should be assessed positively. For entrepreneurs struggling with the effects of a pandemic, this type of relief will allow them to invest their funds in other, necessary areas of their business, adds Adam Allen.
The regulation was published of 19 July 2021, item 1316.