1. Statutory reduction of rent in retail complexes with sales area of over 2,000 sqm

• Statutory rent reduction of 90%, applicable to retail developments with a sales area exceeding 2,000 sqm, covering the period over which the Tenant’s operations are prevented/hindered (unless the Lease Agreement offers a better solution for the Tenant, in which case such solution will apply).

• The Lessor and the Tenant may apply to a court for modification of the reduction rate, subject to the principles of fairness/equity.

• No contractual penalties, interest, compensation for Tenant’s non-performance of obligations (based on the statement of reasons to the draft bill, this shall apply if non-performance results from restrictions on business operations; however, the provision is too vague and might be misinterpreted).

2. Perpetual usufruct fee deferred for 3 months

Deferral of the payment date for perpetual usufruct fee from March 31, 2020 to June 30, 2020.

3. Exemption from tax on civil-law transactions on loans

The tax on civil-law transactions will not apply to loans, yet only in case the borrower is a business entity whose liquidity has deteriorated as a result of the negative economic consequences related to COVID-19.

4. Suspension of retail sales tax

Further suspension of the application of the Retail Sales Tax Act. Taxpayers will not have to pay this tax between July and December 2020.

5. Tax on revenue from buildings deferred until July 20, 2020

Applies to the period of March-May 2020. Available to taxpayers that have suffered negative economic consequences due to COVID-19, and whose revenue in a given month is at least 50% lower than in the corresponding month of the previous fiscal year, or – in case of taxpayers that embarked on business operations in 2019 – than the average monthly revenue in that year.

Please feel free to contact us for any questions:

Michał Wielhorski
Real estate transactions & commercial leasing
Attorney-at-law / Managing Partner
michal.wielhorski@actlegal-bsww.com
+48 605 911 303

Małgorzata Wąsowska
Tax law
Tax Advisor / Partner
malgorzata.wasowska@actlegal-bsww.com
+48 691 477 047