The portion of the purchase price of the goods identified as payable under the license is subject to WHT. The applicant (company) is a distributor of cosmetics. It purchases goods from a related entity (a foreign establishment of a foreign company). The contract concluded between the applicant and the plant contains a provision according to

Payment as part of a court settlement with partial liability for defectiveness is a tax non-deductible cost. Such a ruling was made on 22nd February 2023 in the Supreme Administrative Court (file reference number II FSK 1901/20). The applicant was an entrepreneur who performs, among others Industrial floors. As part of one of the contracts,

The cost of amicable termination of the employment contract is a tax cost, and the advisory costs of purchasing shares may be settled within the so-called “operating” costs – these two noteworthy rulings were made on 14th February in the Supreme Administrative Court. Costs of termination of the employment contract (file ref. number II FSK

The Supreme Administrative Court issued an important ruling on documenting tax costs. The background was as follows: during the a audit, the company did not submit any source documents confirming the incurrence of tax costs indicated in the declaration. The company stated that the inability to present the documents was the result of a fire

It is a common practice of taxpayers to take over the debts of contractors when purchasing real estate, leasing or other contracts standard for business transactions. Such a debt takeover may have a positive impact on, for example, the price or terms of concluded contracts. However, what if the taxpayer decides to repay all or

Administrative courts are adamant to the tax authorities in terms of the classification of hosting services – on August 25, 2022, the District Administrative Court in Krakow issued a judgment with reference number I SA/Kr 101/22, in which it agreed with the taxpayer, stating unequivocally that fees for hosting services are not subject to the

Corporate income tax payers are required to pay monthly advance payments for tax (Article 25 (1) of the CIT Act). Basically, one can pay them as so-called “actual” advances (we calculate the tax on the income earned since the beginning of the tax year minus any advances paid so far or the so-called “simplified” advances

There are significant chances to eliminate the provisions on the documentation obligation in the field of “indirect tax heaven” transactions. Let us remind you that it is about the obligation to prepare transfer pricing documentation in transactions with unrelated entities, if their beneficial owner is a “tax heaven” entity. This regulation has been repeatedly criticized

The Ministry of Finance has published a draft regulation which is to extend the validity of statements (WH-OSC) for the purposes of withholding tax collection. As a reminder, if payments for dividends, interest and royalties to related entities exceed the threshold of PLN 2 million in the tax year, tax must be charged at the

Disputes between entrepreneurs are common in business activities. Some of them end at the pre-trial stage, e.g. by concluding a settlement. What are the consequences of concluding such a settlement in terms of income taxes? Let us consider it on the example of a settlement in which the entrepreneur infringing someone else’s copyright undertakes to