Tax Relief Measures for Flood Victims

The flood that struck the southwestern part of our country in mid-September caused unimaginable material and humanitarian losses. In response to this crisis, many organizations, as well as public and private institutions, have launched relief efforts for flood victims. Government authorities are continuously implementing financial aid measures for those affected. One such measure includes changes in tax regulations aimed at both flood victims and those providing assistance, covering aspects such as a preferential VAT rate for donations and extensions for tax payments and filings.

0% VAT Rate for Charitable Contributions

A 0% VAT rate applies to the free transfer of goods and the provision of services related to aiding flood victims. This reduced rate is valid only for supplies made to:

• Public benefit organizations

• Local government units

• Healthcare entities

• The Government Strategic Reserves Agency

A written agreement must be concluded between the taxpayer providing the free services and the relevant entity mentioned above. This agreement should confirm that the donated goods or services will be used specifically for assisting those affected by the heavy rainfall or flooding in September 2024.

This tax preference is available from September 12 to December 31, 2024.

Extension of Tax Filing and Payment Deadlines

Another relief measure for flood victims is the extension of deadlines for tax payments and filings. This includes postponements for:

• VAT payments

• PIT and lump-sum advance payments

• CIT advances

• Tax on revenue from buildings

• Civil law transactions tax (PCC)

Additionally, deadlines for submitting certain PIT, CIT, VAT, PCC, and inheritance and donation tax declarations have been extended.

These preferences apply to specific periods outlined in the regulation and are directed at a designated group of recipients. In some cases, deadlines have been extended until April 30, 2025.

While this provides tangible relief and facilitates recovery, it should be noted that it only postpones tax payments rather than canceling them. Given the extent of the flood damage, this may be insufficient for many victims.

Tax Deferral and Waiver – Solutions in the Tax Ordinance

Taxpayers can also take advantage of relief measures provided under the Tax Ordinance, such as deferrals, installment plans for tax arrears, or even tax waivers. The Ministry has assured that tax authorities will prioritize applications from flood-affected taxpayers, ensuring immediate issuance of relevant certificates, whether filed in person at tax offices or electronically.

Support for Taxpayers

We encourage affected individuals to contact our tax advisors to explore available tax solutions in response to the flood.

For more details on government assistance for flood victims, visit: https://www.gov.pl/web/powodz2024