The Regulation of the Council of Ministers of 19 January 2021 on support for economic participants affected by the COVID-19 outrage introduce 4 forms of support for entrepreneurs: (i) job protection benefits, (ii) additional stoppage refund, (iii) one-off subsidy, (iv) exemption from social security contributions. Protection package is addressed to companies operating in the most affected sectors and it is aimed at preventing the risk of losing financial liquidity.
Support is available only to entrepreneurs with selected PKD codes of main business activity as at 30 November 2020, i.a. clothing shops, restaurants, service activities supporting air transport, physiotherapeutic activities, paramedical activities, activities of cultural facilities, activities of sports facilities and discos.
Exemption from social security contributions
The package gives the possibility of exemption from paying social security (ZUS) contributions for December 2020 and January 2021. Entrepreneurs can apply for an exemption if:
- the revenue generated in one of the two months preceding the month of submitting the application was lower by at least 40% compared to the income obtained in the previous month or in the same month of the previous year,
- were registered as ZUS contributions payers before 1 November 2020 and
- they submit, by 28 February 2021, billing declarations and personal monthly reports for January 2021 or for December 2020 and January 2021 (unless they are exempt from this obligation).
Abovementioned conditions should be met jointly to enjoy the exemption.
Applications can be submitted until 31 March 2021.
Privileged sectors include i.a. service activities supporting air transport, physiotherapeutic activities, paramedical activities, activities of cultural facilities, activities of sports facilities.
Additional stoppage refund
The main condition for obtaining this support is the decline in revenues in one of the two months preceding the month of submitting the application by at least 40% compared to the income obtained in the previous month or in the same month of the previous year.
One-off subsidy to cover running costs of the business
The subsidy granted by the Starosta (head of country administration) will be available to micro and small entrepreneurs if their revenue obtained in the month preceding the submission of the application was lower by at least 40% compared to the income obtained in the previous month or in the same month of the previous year.
The subsidy may not be granted to micro and small entrepreneurs who, on the basis of the Act of 6 March 2018 – Entrepreneurs Law suspended the business activities for a period including 30 November 2020.
Applications can be submitted until 31 March 2021.
Refinancing of the employees’ remuneration
The regulation enables the entrepreneurs to obtain a subsidy for employees’ remuneration from the Fund of Guaranteed Employee Benefits. Entrepreneurs can apply for this subsidy if the income obtained in one of the three months preceding the month of submitting the application was lower as a result of COVID-19 by at least 40% compared to the income obtained in the previous month or in the same month of the previous year. The subsidy is available for hotels, similar tourist accommodations, travel agents and tour operators.
Applications can be submitted until 31 March 2021.
If you are interested in receiving the above co-financing, please contact us. We will analyze the possibility of using the available aid by your company and will help you to fill in and submit applications.
Łukasz Bączyk
Head of Tax, Board Member
E: lbaczyk@asbgroup.eu
Piotr Szeliga
Tax Manager - Tax Adviser
E: pszeliga@asbgroup.eu
Aleksandra Kryzińska
Senior Tax Consultant
E: akryzinska@asbgroup.eu