The Council of Ministers adopted a draft law on assistance to the citizens of Ukraine
Yesterday, 7 March, the Council of Ministers adopted a draft law regulating assistance to Ukrainian citizens in connection with the war on the territory of that country. In this law there are also announced tax changes.
The first part of the tax changes includes exemptions. The proposed solutions will allow to exempt from inheritance and donation tax Ukrainian citizens who are in Poland and receive aid. The draft assumes exemption from this tax for the acquisition of property or property rights by way of donation or order of the donor. The exemption will cover both aid from individuals and companies and non-governmental organisations. The preference will not be limited in amount and its application will not involve any formalities on the part of the refugees – they will not have to report to the tax office. The restriction will be temporary – the preference will be valid from 24 February to 30 June 2022.
In addition, according to the draft, Ukrainian citizens arriving in Poland as a result of war activities will also be exempt from PIT on benefits received from individuals and companies. Therefore, they will not pay PIT on assistance consisting in, for example, providing housing, food or financing medical treatment. Here, too, the preference will apply from 24 February to 31 December 2022.
The second part of the tax changes concerns tax changes for persons and companies providing assistance to Ukrainian citizens fleeing war and coming to Poland.
Among these preferences is an exemption from PIT and CIT of cash benefits paid to taxpayers who provide assistance to refugees. The taxpayers who receive war refugees from Ukraine under their roofs will receive additional funds from the state for each refugee. Thanks to the tax preference, the benefits received will be tax-free.
The draft also provides for a preference for companies. They will be able to recognise expenses provided for support as costs. Expenditures for production or purchase price of things and rights transferred as a part of assistance, as well as costs incurred due to gratuitous benefits (e.g. free medical assistance) will be tax deductible. The preference will apply from 24 February to 31 December 2022.