Support for flood victims. What can victims count on?

Flooding in Poland and support for victims. A VAT rate of 0% for donations of goods and services, deferred payment of VAT and advance payments on income tax (PIT and CIT), exemption from customs duties, possibility of applying for cancellation or deferral of certain tax liabilities, assistance with loan repayment for mortgage holders, a 10,000 PLN non-repayable aid for the most urgent needs and funds for the renovation or reconstruction of agricultural and residential buildings – these are just some of the possibilities offered by the state as part of the flood relief package for individuals and companies affected by the September flood in Poland.

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Key information on the flood relief package for flood victims in Poland

Government support for flood victims includes:

• 2 billion PLN allocated to tasks related to the prevention and removal of the effects of natural disasters.
• Funds for the payment of targeted benefit for the voivodeships: Lower Silesia (Dolnośląskie), Opole (Opolskie), Silesia (Śląskie), and Lubusz (Lubuskie)
• An anticipated reserve of 738 million PLN for municipalities affected by flooding
• Immediate aid up to 10,000 PLN and up to 200,000 PLN for repairs and reconstruction of buildings
• A one-time emergency relief payment of 1,000 PLN for caregivers of children
• Additional leave days for employees affected by the floods
• Extended deadlines for key tax payments for businesses
• The possibility to apply for cancellation of tax obligations under the Tax Ordinance Act
• Non-repayable and tax-exempt assistance from the Borrowers’ Support Fund for up to 12 months for flood victims with a mortgage
• A VAT rate of 0% for donations of goods and services provided as flood aid, as well as for construction materials used to repair or rebuild properties damaged by the flood.

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Tax relief and support for flood victims

The Finance Minister’s regulation of September 19, 2024 extended tax payment deadlines for entrepreneurs affected by the flood, namely VAT, PIT, and CIT. The VAT payment deadline is postponed to January 25, 2025, while PIT and CIT advance payments for August through December 2024 are deferred. Flood-affected entrepreneurs with a residence, headquarters, or management office in disaster-designated areas in Poland may defer income tax reporting until the annual return, which also applies to tax for employees, registered income tax, minimum building tax, and CIT taxpayers with a non-calendar fiscal year.

In addition, monthly and quarterly VAT returns for September-October 2024, as well as JPK-VAT summary information, may now be submitted until November 25, 2024. It is also still possible to apply for remission of tax liabilities in accordance with the Tax Ordinance.
All flood victims also benefit from extended filing and payment deadlines for civil law transaction tax and inheritance/gift tax declarations due between September 19 and October 31, 2024. The deadline is now January 31, 2025.

On September 17, 2024, the Finance Minister introduced a 0% VAT rate for goods and services donated to flood victims (e.g., food, blankets, sleeping bags, generator rentals) through public benefit organizations, local government units, medical entities, and the Government Strategic Reserves Agency. This rate applies to donations between September 12 and December 31, 2024.

From September 24, 2024, to March 31, 2025, the 0% VAT rate also applies to donations of building materials given to those affected by the flood who need to rebuild or repair their damaged properties.

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Duty and VAT exemptions on imported goods and other benefits

Additional benefits for flood victims introduced by the Ministry of Finance in Poland include:

• Customs duty exemptions for essential imported goods (e.g., food, medicine, clothing) intended for free distribution among those in need through government or authorized charitable organizations.
• VAT exemptions, which only apply if customs duty exemptions are also granted, for imports such as medicines, clothing, and food by social organizations or entities implementing charitable or humanitarian aid.

The customs duty exemption is granted under Article 61 of Council Regulation (EC) No 1186/2009. In order to benefit from this exemption, charitable or humanitarian organizations must meet the requirements specified in the Regulation of the Minister of Labor and Social Policy of March 10, 2011. However, they are not required to hold public benefit organization (OPP) status. The conditions and rules for applying the VAT exemption on imported goods are specified in Article 61, Sections 3-8 of the Polish VAT Act of March 11, 2004. It should be noted that VAT and customs duty exemptions do not apply to the import of tobacco and tobacco products, coffee and tea, or motor vehicles other than ambulances.

Flood-affected businesses are also eligible for a deduction or refund of costs related to the purchase of a cash register (up to 2,000 PLN) and an extension of reporting deadlines. In the case of free transfer of ownership of fixed assets to affected entrepreneurs or financing their purchase, they can include depreciation write-offs in the costs of obtaining income until the end of 2025.

The Act on Special Solutions for Flood Recovery also provides for an exemption from income taxes on the income of the affected party, received to cover flood recovery expenses, including:

• Free or partially paid benefits
• Donations that are not covered by the Inheritance and Donation Tax Act
• Assistance received from various sources specified in the Act.

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Support for borrowers affected by the flood

As part of the support package, the government has also considered mortgage holders affected by the flood. Flood victims who hold a mortgage for personal housing needs may access the Borrowers’ Support Fund (FWK). The condition is, for example, temporary loss of the ability to use a house or apartment and when the credited house or apartment was damaged or destroyed during the flood.

An application must be submitted to the bank or credit union by December 31, 2024. For 12 months, FWK will cover monthly mortgage payments without repayment. This support is independent of the amount of the instalment or the mortgage currency.

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Emergency aid and funding for building renovations or reconstruction

Under the government’s Flood Relief Act, a family affected by the flood can receive up to 10,000 PLN in emergency aid, including:

• Up to 8,000 PLN from social assistance
• 2,000 PLN flood benefit

Flood victims can also apply for non-repayable funds for renovation or reconstruction of damaged buildings:

• Up to 100,000 PLN for renovation or reconstruction of agricultural buildings
• Up to 200,000 PLN for renovation or reconstruction of residential buildings.

Applications for special-purpose allowances and funds for renovations or reconstruction of damaged buildings have to be submitted within 30 days of the flood, while for flood allowances until March 15, 2025. Applications can be made at Municipal Social Welfare Centers (MOPS/GOPS) or city or municipal offices in Poland.

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One-time emergency allowance and additional paid leave

Flood victims may apply for a one-time emergency allowance of 1,000 PLN, granted to a child’s guardian for educational needs regardless of income.

Flood-affected employees may also receive up to 20 additional days of paid leave to remove flood damages. Employers will be able to obtain a partial refund of salary costs and social insurance contributions for the period of this leave from the Guaranteed Employee Benefits Fund. Additionally, flood victims may double their emergency leave days and use leave on an hourly basis.

If a nursery, school, or other institution attended by a child or person with disabilities was destroyed, is closed, or undergoing repair or reconstruction, caregivers will receive additional support with an allowance equal to 80% of wages.

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Help for flood victims: Where and how to get information? Useful contacts

To get information on the rights for individuals and companies affected by the flood, contact the Polish National Tax Administration Hotline:

• (+48) 22 330 03 30 (from mobile phones)
• 801 055 055 (from landlines)

KAS consultants are available Monday to Friday from 8:00 a.m. to 6:00 p.m.

Importantly, affected taxpayers can submit applications at any nearby tax office or temporary tax service points. Tax authorities in Poland prioritize flood victims’ applications and certifications for flood victims are to be issued “on the spot.”

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Legal basis:

• Act of September 16, 2011 on special solutions for flood recovery (Journal of Laws 2024, No. 654).
• Act of October 1, 2024, amending the Act on special solutions for flood recovery and certain other acts (Journal of Laws 2024, item 1473).

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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