Relief on donations for purposes related to COVID-19

On October 28, 2020, the Sejm passed an amendment to the PIT and CIT Acts, which extended the deadline for preferential settlement of donations for the fight against Covid-19.

Thanks to the introduced changes, taxpayers will be able to deduct from tax or advance payments donations made from January 1, 2020 to the end of the month in which the state of epidemic announced due to COVID-19 was canceled, for counteracting COVID-19.

As a result of the changes introduced, it will still be possible to settle donations on favorable terms. Until now, the preferences could be used until September 30, 2020. Now, the relief will apply to donations made from January 1, 2020 until the end of the month in which the state of epidemic declared due to COVID-19 was lifted.

Deduction of donations to combat the COVID-19 coronavirus epidemic.

On the basis of the provisions of the anti-crisis shield, preferential treatment of donations intended for combating the coronavirus has been introduced. The regulations were in force until September 30, 2020. Now the government has decided to extend the period during which donations can be made for purposes related to Covid-19.

Amount of deductions

The amount of the deduction will be for donations made:

• from October 1, 2020 to December 31, 2020 – 200 percent. the value of the donation;
• from January 1, 2021 to March 31, 2021 – 150 percent. the value of the donation;
• from April 1, 2021 until the end of the month in which the state of epidemic will be lifted – the equivalent of the donation made.

Conditions to be met

As before, the condition for deducting the donation will be documenting the donation with evidence from which the data identifying the donor and the value of the donation, together with the recipient’s statement of its acceptance, result.

Which donations will be deductible?

Donations made to:

• indicated medical entities, if they have been entered in the list. These lists are kept by the locally competent director of the voivodship branch of the National Health Fund in consultation with the voivode. in the public information bulletin of the National Health Fund or official journals of provinces, broken down by province
• Material Reserves Agency,
• Central Base of Sanitary and Epidemic Reserves,
• houses for mothers with minor children and pregnant women,
• night shelters and shelters for the homeless

The donation for combating COViD can be deducted not only in the annual tax return, but also from the basis for calculating the advance payment for income tax, in the month it is made.

The deduction of donations for combating COVID does not constitute state aid or de minimis aid, therefore it does not exhaust their limits.