No taxation of canceled PFR subsidies - new regulation of the Ministry of Finance!


The Minister of Finance, Funds and Regional Policy, Tadeusz Kościński, signed an ordinance on ceasing to collect tax on income from canceled PFR subsidies. This is to be another aid for entrepreneurs affected by the crisis caused by the coronavirus pandemic. Let's check what the lack of taxation of canceled PFR subsidies means for companies!

Who is affected by the lack of taxation of canceled PFR subsidies?

The remission of the tax on the PFR shield applies to entrepreneurs benefiting from support under Shield 1.0 and Shield 2.0 of the Polish Development Fund. As a rule, the subsidy should constitute tax income for them, however, it is contradicted by the announced regulation on abandoning the collection of income tax on income (revenues) due to the redemption of financial subsidies or preferential financing granted by the Polish Development Fund. No taxation of the redeemed PFR subsidies is to apply to income obtained by beneficiaries from June 1, 2021 to December 31, 2022. The regulation does not change the possibility of recognizing the expenses covered by the shield in tax deductible costs.

Minister Tadeusz Kościński points out: "The resignation from tax collection will provide economic entities with increased opportunities to finance their activities, which will positively affect their development and employment, and, consequently, should contribute to the country's economic growth."

Entrepreneurs receiving the PFR subsidy in the period from June 1, 2021 to December 31, 2022 do not have to tax it as income.

The regulation comes into force on July 20, 2021.