Currently, preparations are underway for a special law that will provide, among other things, for facilities for tax payments.

Without waiting for new solutions, taxpayers may take advantage of the institution which has been functioning for years on the grounds of the Tax Ordinance, i.e. deferment of the deadline for payment of the tax/tax arrears or spreading into instalments, or even remission of tax arrears.

How does this relate to the pandemic?

Pursuant to Article 67a of the Tax Ordinance, at the request of a taxpayer, in cases justified by an important interest of the taxpayer or the public interest, the tax authority may:

  • defer the date of payment of the tax or spread the payment of the tax into instalments;
  • postpone or spread into instalments payment of tax arrears together with interest for late payment or interest on tax advances not paid on time;
  • write off, in whole or in part, tax arrears, interest on arrears or a prolongation fee.

Such a legitimate and important interest of the taxpayer may be the real risk of problems with timely payment of tax dues due to the presence of the SARS-CoV-2 coronavirus.

What reaction can we expect from the tax authorities?

According to the information posted on the website of the Ministry of Finance, in this case, the tax offices are to consider applications in this regard, in the first instance, and will take into account the current epidemic situation when considering applications for the granting of reliefs in the repayment of tax liabilities, and the extraordinary circumstances in which taxpayers find themselves will justify their applications for

– postponement of tax payment (as well as tax arrears),

– spreading the payment of tax in instalments (as well as tax arrears),

– remission of tax arrears.

What should be borne in mind?

If the authority grants a request for postponement of tax payment deadline (as well as tax arrears) or payment in instalments (as well as tax arrears), the decision of the tax authority determines the prolongation fee on the amount of the tax or tax arrears (equal to half of the interest for late payment – i.e. 4% as at the date of this information). The prolongation fee is not set when the reason for issuing such a decision was a natural disaster or a fortuitous event. (by way of the announced special law, the prolongation fee will probably be abolished).

In addition, it should be borne in mind that the authority is bound by the content of the application (it will not apply other relief than that applied for by the taxpayer, therefore, in their applications taxpayers should formulate alternative requests). In response to the taxpayer’s request, the authority will respond by way of a decision (granting or denying the right to relief).

When applying for tax relief, please note that
  • application for deferment of tax payment (tax instalment) – should be submitted before the deadline for its payment;
  • application for deferment of payment of tax arrears (spreading of tax arrears into instalments) – to be submitted after the deadline for payment of tax;
  • application for cancellation of tax arrears – to be submitted only after the deadline for payment of the tax (the institution of relief consisting of “cancellation” refers to a tax arrear, i.e. a tax whose due date has already passed).

Applications can be submitted on paper or electronically using ePUAP.

Should you have any doubts or questions about completing or submitting your applications, we remain at your disposal.