Corona Pandemic: Immediate Taxation, Legal Measures and Financial Aid in Poland, Algeria and Colombia

Many countries have released further anti-crisis law decrees. In Poland and Colombia, the governments have revised some acts and created new tax regimes. Algeria has announced new measures in response to the crisis caused by COVID-19. Our professionals summarise for you.

Poland

In the night from 16 to 17 April 2020, the Polish parliament passed the Act on Specific Support Instruments in Connection with the Spread of the SARS-CoV-2 Virus (Shield 2.0). The Polish President signed Shield 2.0 on 17 April 2020 and it has already come into force. This is a continuation of the aid measures for businesses adopted on 1 April 2020. Here are some of the measures introduced or modified by Shield 2.0:

• A new support scheme offered by the Industrial Development Agency (Agencja Rozwoju Przemysłu S.A.) focused on helping businesses improve their financial liquidity. The size and type of support will depend on the financial consequences actually reported by the applicant. The new solutions being offered include, for example, an operating lease with a grace period intended for refinancing existing leases in commercial companies and leasing associations and a working capital loan to cover a shortage in working capital.
• Under Shield 2.0, there will also be a micro-loan available for enterprises with no employees. In accordance with the amended shield, an applicant may have their loan written off provided they continue to conduct business for at least three months from the date on which the loan was granted.

Importantly, the new Shield 2.0 introduces an extended circle of businesses that can qualify for a three-month exemption from contributions to the Social Insurance Institution (ZUS). From now on, this relief will also be available to businesses employing from 10 to 49 employees. However, it should be emphasised that in this case, the exemption is not 100%. These businesses are only exempted from paying 50% of the total outstanding balance reported in the declaration submitted for a given month.

In addition, a downtime benefit is introduced for persons employed under an agency contract, mandate contract or similar for the provision of services.

Ecovis Poland remains at its clients’ disposal to provide help with any urgent requests and where needed. We are here to provide our best support in guiding our clients through this difficult time.

Algeria

The government has released several measures to reduce the impact of the crisis, including:

Employment measures
Paid leave for at least 50% of staff in public institutions and administrations, as well as the public and private economic sector. The relevant authorities responsible for staff excluded from this measure may authorise exceptional leave for administrative staff. Pregnant women and women raising children, as well as people with chronic illnesses and those with health vulnerabilities, are given priority for exceptional leave. Public institutions and administrations may take measures to encourage telework in compliance with laws and regulations.

CNAS (National Social Insurance Fund) and social security measures
As part of the measures taken by the Algerian government to mitigate the effects of the health crisis during the COVID-19 pandemic, the Minister of Labour, Employment and Social Security has granted new exceptional and circumstantial parafiscal measures to benefit employers and heads of public and private enterprises:

• Thirty day deferral of the employers’ payment deadline for the month of April 2020.
• Deferral of the payment of social security contributions for non-employees, legally due on 30 June of each year, by 90 days, i.e. until 30 September 2020.
• A six-month suspension of the penalties and late payment increases for the CNAS/CASNOS (National Social Security Fund for Nonwage Earners) schemes, starting in April 2020.
• Provision of payment schedules according to the case and the situation of each company for previous debts of the two CNAS/CASNOS social security schemes.
• Payment in advance or exceptional payment of annual holidays for workers in the BTPH (Building, Public Works and Hydraulic Sectors) affiliated to the CACOBATPH (National Fund for Paid Leave and Bad Weather Unemployment in the Building, Public Works and Hydraulic Sectors), in proportion to the number of months contributed during the period from July 2019 to February 2020.

Tax measure
As part of the implementation of the easing measures adopted by the authorities to support businesses financially impacted by the current health crisis in the country, taxpayers are informed that the tax authorities have adopted the following measures:

• Extension of the deadlines for the G50 monthly declarations of February and March and for the payment of related duties and taxes until 20 May 2020. Accordingly, taxpayers will be required to file three declarations (February/March/April) by the above/mentioned date and to pay the corresponding fees. However, taxpayers falling under the Direction des Grandes Enterprises (DGE, Division of Large Enterprises), will continue to file and pay the taxes owed online/remotely.
• Extension of the deadlines for the G50 quarterly declaration (IRG/salaries January/February/March) until 20 May 2020.
• Annual declaration of results (annual tax balance sheet):
  • The deadline for submitting the annual statement of income (balance sheet and notes) is extended until 30 June 2020.
  • For companies falling under the DGE, the deadline for submitting the annual statement of results is extended to 31 May 2020.
  • The deadline for payment of the balance of corporate tax (IBS) is twenty days from the date the declaration.
• The deadline for submitting the annual tax return G No. 1 (IRG/home) is extended until 30 June 2020.

Renewal of the deferment of payment of the first IRG/IBS

• Payment schedules:
  • Taxpayers who find themselves in a difficult financial situation may request a payment schedule for their tax debts.
  • Likewise, those who already have a payment plan can request a reorganisation of the payment plan in the event of cash flow difficulties.
• Suspension of the taxation of non-affected benefits:
  • The taxation of unallocated profits for the financial years 2016 and following, provided by the provisions of Article 15 of the Finance Act for 2020, is suspended.

Ecovis Algeria is accompanying this situation and will be reporting any measures that emerge with an impact on companies in general.

Colombia

The Government issued Decree 530, which covers new measures for the Special Tax Regime, on 8 April 2020.

Temporary exception to the liability of financial movements

• Withdrawals of savings and/or current accounts made by non-profit entities belonging to the Special Tax Regime will be exempt from the Tax on Financial Movements (GMF, Gravamen a los Movimientos Financieros).

Requirements
A written request to the financial institution.

• Declare under oath that withdrawals are for the purpose described in point one of the decree.
• Documents must be sent to the DIAN (Dirección de impuestos y aduanas nacionales) within 15 days of transaction.
• Within 15 days following the end of the state of social emergency inform the DIAN of the details of the non-profit entity, including the total amount of the withdrawals, the destination and identifications of the beneficiaries.

Penalty

• Failure to send the required information in accordance with the established times and conditions will result in sanctions according to article 651 of the ET, which ranges between 3% and 5% of the total value of the information not supplied.

Under the Special Tax Regime, donations are also exempt from sales tax or VAT.

Ecovis Colombia continues to render professional services during the pandemic and can provide all clients with specific documents and assistance in order to comply with the new measures. We are working on detailed information for clients about the Special Tax Regime.