During a press conference held on 2 July 2021, the Ministry of Climate and Environment presented a new support scheme dubbed “My Electric Vehicle” [Mój Elektryk], the goal of which is to reduce air pollutant emissions through co-financing projects aimed at decreasing consumption of high-emission fuels in transport, primarily by supporting the purchase/lease of zero-emission vehicles.
The scheme will be handled by the National Fund for Environmental Protection and Water Management (NFEPWM), with the total budget estimated at PLN 500 million.
Applications may be submitted already from 12 July 2021.
The key information on the “My Electric Vehicle” scheme can be found below.
The purpose behind the decrees
Essentially, the decrees refer to the new obligations imposed on withholding tax remitters by the Act of 23 October 2018 amending the Personal Income Tax Act and the Corporate Income Tax Act (Journal of Laws, item 2193), according to which, a Polish taxable person paying interest, dividends, license fees or remuneration for certain intangible services to foreign taxpayers will be required to collect WHT (at the standard rate of 20 percent or 19 percent) and only once it is collected, foreign taxpayers or the remitters themselves (if they bore the economic burden of tax) may apply for a refund of the collected WHT (under the pay and refund mechanism).
Eligible entities
The key beneficiaries of the scheme are natural persons not conducting business activity, who can submit their applications already from 12 July 2021.
As announced by the NFEPWM, a few weeks later the scheme will be extended to companies, local government units, research facilities, cooperative societies, farmers, religious associations, and NGOs.
Finally, the scheme will cover banks, which, through lease companies, are to distribute lease subsidies, including those covering long-term rental.
Object of co-financing
The support will be granted in form of subsidies for the purchase of zero emission vehicles and subsidies for fees specified in lease agreements.
The subsidies may be granted to finance the purchase or lease of an electric vehicle with the value of up to PLN 225,000 gross (this limit will not apply, however, to natural persons being large family card holders).
Importantly, the scheme will not cover hybrid vehicles.
Value of subsidy
The maximum value of the subsidy will be:
- for natural persons - PLN 18,750 (vs PLN 27,000 for large family card holders);
- for companies:
- PLN 27,000 for passenger cars (M1 category) (for a declared annual mileage of at least 15k km),
- PLN 70,000 for vehicles for the carriage of goods and having a maximum mass not exceeding 3.5 tonnes (N1 category) (for a declared annual mileage of at least 20k km),
- PLN 4,000 for mopeds, motorcycles, and motor tricycles (L category).
Procedure
Applications will be accepted from 12 July 2021 to 30 September 2025.
Application procedure will be simplified and completed online.
The subsidy will be paid out after the purchase of a vehicle.
Importantly, the vehicle covered by the subsidy cannot be re-sold for at least 24 months.
The scheme is also open for individuals who have already bought an electric vehicle, provided that they did so after 1 May 2020.
The above conditions may be subject to slight modifications once the scheme is launched.
If you would like to learn more about the issues discussed, please do not hesitate to contact us.
If you would like to learn more about the issue discussed, please do not hesitate to contact us.
