We know that the losses are very large, although we do not know the exact number yet, so I think that the amount of EUR 5 billion for Poland is an adequate amount, but it does not mean that it is sufficient to cover all the losses – said Andrzej Domański, Minister of Finance, on Friday in “One on One”. He also explained what tax exemption mechanisms will be available to affected entrepreneurs.
Andrzej Domański was a guest of Agata Adamek on TVN24. In the conversation, he referred to Ursula von der Leyen's Thursday declaration on financial support for flood-affected countries.
– These are resources from structural funds, most of which would not have been spent. This Solidarity Fund is definitely too small for the scale of the needs of the entire region. These 5 billion euros will be redirected to combat the effects of flooding – said the Minister of Finance on TVN24.
– We know that the losses are very high, although we do not know the exact number yet, so I think the amount of EUR 5 billion for Poland is an adequate amount, but it does not mean that it is sufficient to cover all losses – he added.
Andrzej Domański: EUR 5 billion is an adequate amount, but not sufficientTVN24
Tax exemptions for entrepreneurs
When asked about the proposed regulation regarding tax burdens for flood victims, the Finance Minister stressed that it consists of two important elements.
– First of all, a postponement, so that entrepreneurs from these flood areas can focus on rebuilding their businesses at the moment. And here, no activity is needed on their part. Simply they may not pay until the end of this year PITCIT and VAT. They will settle it in the so-called annual settlement. As for VAT, the deferral will be until January 2025. In the case of CIT, until the end of March. In the case of PIT, until the end of April 2025 – he explained.
Andrzej Domański on aid for entrepreneurs: possible tax deferrals and write-offsTVN24
As he added, “in connection with Article 67b of the Tax Code, there is a possibility of cancellation in a situation where there is an important interest of the taxpayer or an important public interest”. – I guess there is no doubt that this is the situation we are dealing with – said the head of the Ministry of Finance. Domański emphasized that in the case of cancellation, it will be necessary for the taxpayer to submit an application to the tax office.
Main image source: TVN24