The Financial Shield of the Polish Development Fund 1.0 for Small and Medium-Sized Enterprises – new regulations
22 June 2021
22 June 2021
On 13 April 2021, the Polish Development Fund amended the currently applicable Rules and Regulations for applying for participation in the government program “Financial Shield of the Polish Development Fund for Small and Medium-Sized Enterprises”. The amended version of the Rules came into force on April 28, 2021.
The changes introduced mainly concern the rules of settlement and redemption of the subsidy granted under Shield 1.0.
The most important of them are presented below:
The subsidy will be settled exclusively via the electronic banking system of the bank selected. The Beneficiary is obliged to submit a Settlement Statement, i.e. a document indicating all the necessary information and declarations required by the regulations. Then, the Polish Development Fund will make available, through electronic banking, a preliminary subsidy clearance form. It will include data to which the Polish Development Fund has access (from the Social Insurance Institution, the National Tax Administration and the Ministry of Finance). This data should be verified and, if necessary, clarified with the relevant office.
The received form should then be supplemented with missing information, which is crucial for the proper indication of the redemption amount.
The form so completed will allow the generation of a draft statement. It should then be verified and approved using the bank’s authorization tools.
After submitting the declaration, the Polish Development Fund will verify it and issue one of the three decisions:
The subsidy clearance statement is submitted no earlier than on the first day of the first 12 months after the subsidy payment date and no later than 10 working days after the first 12 months after the subsidy payment date.
The decision of the Polish Development Fund will be issued within 15 working days, counting from the last day of the deadline for subsidy clearance. In justified cases, this deadline may be extended.
The existing conditions of the write-off have not changed, they have only been made more precise:
The remaining 25% of the subsidy is non-refundable.
For beneficiaries operating under a specific code of the Polish Classification of Activities, it is possible to redeem 100% of the subsidy received. The list of codes can be found in the regulations. Please note: activity under these Polish Classification of Activities codes must be actually carried out. The code must appear in the registers as of 31.12.2019.
In addition, the beneficiary must meet the following conditions together:
The maximum redemption amount is up to PLN 3.5 million.
The Ministry of Finance has not taken a position on this issue. If it is not decided that these amounts are tax exempt, then the redemption amount will be taxable.
You are welcome to contact getsix® specialists. We offer substantive support in the process of qualifying for the Polish Development Fund Financial Shield and assistance in completing formalities in accounting for subsidies from the Polish Development Fund.
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.