The Genoese Boris low and the associated weather breakdown is ravaging the south of Polish. More and more towns are struggling with floods, destroying the livelihoods of thousands of Poles. In this difficult time for many people, it is worth not being indifferent. Therefore, we encourage you to make donations to non-governmental organizations that work for the benefit of the victims.
We would like to remind you that the Polish PIT and CIT tax acts provide for tax benefits for people who make both cash and in-kind donations.
Donations that are deductible are donations for purposes indicated in the Act, m.in. for public benefit purposes, which include assistance to victims of disasters and natural disasters. In order to make a deduction, the recipient of the donation must be the entity indicated in the Act, generally these are non-governmental organizations (such as foundations, associations) conducting statutory activities in the field of assistance to victims of disasters and natural disasters (organizations referred to in Article 3 sec. 2 and 3 of the Polish Act on Public Benefit Activities and Volunteering). Donations made directly to natural persons are not deductible.
To be more specific, PIT taxpayers, in accordance with Article 26 sec. 1 point 9 of the Polish PIT Act, have the right to deduct from the tax calculation basis an amount equal to the amount of the donation made, but not more than the amount constituting 6% of income. The relief is available if such a taxpayer obtains income taxed according to the tax scale (i.e. at the rate of 12% or 32%) or a lump-sum income tax on recorded income (recorded lump-sum tax). The deduction should be made by adding the PIT-O attachment to include all deductions and reliefs to which the taxpayer is entitled.
On the other hand, CIT taxpayers, in accordance with Article 18 sec. 1 point 1) of the Polish CIT Act, have the right to deduct from the tax base an amount equal to the amount of the donation made, but not more than the amount constituting 10% of income. It is also important that the deduction can be made already during the tax year, when calculating tax advances.
At the same time, both PIT and CIT taxpayers using the deduction of donations are obliged to indicate in the annual return the amount of the donation made, the amount of the deduction made and data allowing for the identification of the recipient, in particular their name, address and NIP (Tax Identification Number).
The Act also specifies that if the subject of the donation are goods subject to VAT, the amount of the donation is considered to be the value of the goods including the value of the goods including the value of the donation, in the part exceeding the amount of input tax that the taxpayer is entitled to deduct in accordance with the provisions on the tax on goods and services on account of the donation.
It is also worth remembering that the obligatory documentation requirement for the deduction of the donation made is:
- proof of payment to the recipient’s payment account – in the case of transferring funds;
- evidence of the donor’s identification data and the value of the donation along with the recipient’s declaration of acceptance – in the case of a non-cash donation.
At the same time, donations are tax non-deductible.
The weather breakdown and the catastrophic situation associated with it are taking place not only in Poland, but also in the Czech Republic, Austria and many other countries.
However, we should remember that in the case of a donation to an organization specified in the regulations governing public benefit activities in force in a Member State of the European Union other than Poland or another country belonging to the European Economic Area, the donation should be documented by a statement of this organization that on the date of making the donation it was an equivalent organization to the organizations referred to in Article 3 sec. 2 and 3 of the Polish Act on Public Benefit Activities and Volunteering, pursuing the objectives set out in Article 4 of the Act and conducting public benefit activities in the sphere of public tasks.
At the same time, the government has announced the introduction of a 0% VAT rate for donations of goods and services made to people affected by the flood in the period from 12 September to 31 December 2024 through public benefit organisations, local governments, healthcare entities, or the Government Agency for Strategic Reserves (RARS).
In addition, if you are an entrepreneur who has suffered losses due to flooding, flooding or flooding, in the event of financial difficulties, you have the option of dividing the tax into installments or deferring its payment.
The above is possible on the basis of Article 67a of the Polish Tax Ordinance, which specifies that taxpayers may apply for:
- payment of tax receivables in instalments (RAT-Z application),
- cancellation of tax arrears (UZ-M application),
- deferral of the deadline for payment of tax liabilities (TER-Z application).
In addition, the Ministry of Finance indicates that in the Opolskie, Małopolskie, Śląskie and Dolnośląskie voivodeships, a special, temporary hotline will be launched, where affected entrepreneurs can ask about tax settlements (PIT, VAT) and about reliefs in the repayment of tax liabilities. The phone number is: 22 460 59 30.
