Judgment: Operating lease costs are not covered by thin capitalization

The company leased equipment (locomotives) on the basis of leasing contracts, which for tax purposes were operating leasing (balance sheet financial leasing). The company asked whether the locomotive lease payments constitute debt financing costs within the meaning of the thin capitalization provisions (Article 15c of the Polish CIT Act)? In the opinion of the Company,

  • Published in CIT

Proposed changes to the “Polish Deal”

Today, Prime Minister Mateusz Morawiecki and Deputy Minister of Finance Piotr Soboń presented proposed changes to the “Polish Deal”, which are to meet “the opinions of taxpayers and experts”. The regulations are to come into force in July this year (although there is no bill yet). Below, the proposals for new solutions presented at the

The Sejm adopted the law on assistance to Ukrainian citizens

Yesterday, the Sejm adopted a law on assistance to Ukrainian citizens in connection with an armed conflict on the territory of that country. The Act contains, in particular, the following solutions: I. Work and social matters Stay legal stay in Poland for 18 months for people who came directly from Ukraine and declared their intention

Action plans for the citizens of Ukraine

The government announces support plans for Ukrainian citizens and tax preferences for individual supporters Assumptions of the draft law The list of legislative works includes the assumptions of the draft law on assistance to Ukrainian citizens in connection with an armed conflict in the territory of that state. According to the information, the act is

Judgments: retroactive deprecation and non-taxation on liability’s expiration

Today we present you two very important rulings of the Supreme Administrative Court from the past week. Retrospective reduction of depreciation rates The taxpayer (company) had a number of fixed assets. Due to the incurred tax losses, the company considered the possibility of lowering the depreciation rates also for the previous years, taking into account

  • Published in CIT

“SLIM VAT 3” package – proposals of the Ministry of Finance

Today, the Ministry of Finance published the proposed amendments to the act on tax on goods and services – the so-called “SLIM VAT 3” package. This is another edition of the Ministry’s action, aimed at preparing packages of changes that make it easier for entrepreneurs to settle VAT. Thanks to them, Polish VAT is to

  • Published in VAT

Judgment: “exit tax” does not apply to private property of natural persons

In accordance with the provisions of the PIT Act: taxation with the tax on income from unrealized profits (“exit tax”) is subject to, inter alia, transfer of an asset outside the territory of Poland, as a result of which Poland loses the right to tax income from the sale of this asset, while the transferred

Judgment: undocumented costs are tax non-deductible

The taxpayer purchased a number of intangible services (advertising / market research / advisory services), which he classified as tax-deductible costs in CIT. Tax authorities ruled on their exclusion from tax-deductible costs due to the lack of documentation confirming their performance. The decision was appealed against to the District Administrative Court in Gliwice. The taxpayer

  • Published in CIT

Christmas wishes

Ulve Tax & Legal team would like to wish you all the best for Christmas!

General interpretation – participatory exemption, general partnerships and limited partnerships

The Minister of Finance issued a general interpretation (sign. DD5.8203.2.2021) regarding the application of the so-called “participatory exemption” of income (profits) obtained from participation in the profits of general partnerships and limited partnerships which are CIT taxpayers (pol. spółka komandytowa and Spółka jawna). The Minister stated that this exemption may apply to income (profits) generated

  • Published in CIT