European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure PL-2021-27/1950 Updated – measures in Poland

Tax on the Financial Shield to be canceled

Podatek od Tarczy Finansowej do umorzenia

Country Poland , applies nationwide
Time period Open ended, started on 29 June 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Jan Czarzasty (Warsaw School of Economics)
Measure added 11 July 2021 (updated 20 October 2021)

Background information

The Financial Shield administered by the Polish Development Fund (PFR), has been put into use in April 2020 based on the Act amending the Act on the System of Development Institutions facilitating public support programme.

Under the PFR shield, 348,000 micro, small and medium-sized enterprises received partly non-refundable financial subsidies totalling almost PLN 61 billion by mid 2021.

Content of measure

The Prime Minister announced to have taken a decision on the government refraining from demanding income tax to be paid from the financial aid received under the Financial Shield schemes. Since the scheme has been put into use, the issue remained unclear, and for that reason it has been a source of much distress and anxiety among the entire business community in general, and the aid recipients in particular. The step recently taken allows to hope for appeasing the atmosphere somewhat. The Prime Minster argued that enterprises have had a difficult time through the pandemic, so giving back the part of the aid received due from the tax, could slow down their development. However, the necessary regulatory amendments need to follow, so that the declaration can materialise.


The following updates to this measure have been made after it came into effect.

19 July 2021

In late July the Ministry of Finance announced the decision facilitating the declarations made by the Prime Minister.

Use of measure

The decision is likely to translate into over PLN 40 billion liabilities cancelled, which represents at least PLN 8 billion in tax benefits for the companies, as the Chair of the PFR observed.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A


The decision is regarded to be taken with no consultation with social partners.

Views and reactions

No positions of social partners followed.


  • 29 June 2021: Financial aid granted under the Financial Shield not to e taxed (
  • 29 June 2021: No tax on Financial Shield (
  • 19 July 2021: Ordinance of the Minister of Finance, Funds and Regional Policy of 16 July 2021 on the waiver of income tax on income (revenue) from cancellation of a financial subvention financing or preferential financing granted by the Polish Development Fund (


Eurofound (2021), Tax on the Financial Shield to be canceled, measure PL-2021-27/1950 (measures in Poland), EU PolicyWatch, Dublin,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.