Poland: Meaning of “one-off transaction value”; dividend income taken into account in allocating indirect costs

Supreme Administrative Court decisions

Supreme Administrative Court decisions

The Supreme Administrative Court issued the following decisions:

  • In a decision dated 21 June 2022 (case file II FSK 2815/19), the court held that a “one-time” transaction within the meaning of Article 22(1) of the Act on freedom of economic activity should cover not only an installment, but the entire contract under which it is paid. As a result, “one-off transaction value” means the value of all payments made under a single contract, not the value of each separate payment. Consequently, in case of a lease contract, the “one-off transaction value” is the sum of all payments made under the contract. As a result, Article 15d of the corporate income tax law, pursuant to which taxable persons may not deduct costs made without payment account intermediation to the extent the “one-off transaction value” of the payments exceeds PLN 15,000, may apply to a lease contract.
  • In a decision dated 14 June 2022 (case file II FSK 2643/19), the court held that pro rata principles do not apply to revenue subject to lump-taxation. As a result, revenue subject to lump-sum taxation is excluded from calculations to determine the proportionate allocation of indirect costs. Moreover, the taxable base for corporate income tax purposes includes dividends from subsidiaries established outside Poland (i.e., such income is not subject to lump-sum taxation). Accordingly, dividend income, despite possibly being exempt under Article 20(3) of the corporate income tax law, must be taken into account when determining the proportionate allocation of indirect costs.

Read a June 2022 report prepared by the KPMG member firm in Poland


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