Poland: Guidance for real estate companies, deductibility of intangible services costs incurred by acquired subsidiary

Court decisions concerning guidance for real estate companies, deductibility of intangible services costs

Guidance for real estate companies, deductibility of intangible services costs incurred

Article Posted date 06 February 2023

The KPMG member firm in Poland prepared a report that includes summaries of the following court decisions relating to real estate companies, as well as regarding the deductibility of intangible services costs incurred by an acquired subsidiary:

  • Regional Administrative Courts in Poznan and Warsaw, on 31 January 2023 and 01 February 2023, held (case files I SA/PO 752/22, III SA/WA 1788/22, III SA/ WA 2356/22 and III SA/Wa 2355/22) that the tax depreciation limits introduced as part of the Polish Deal program, effective as of 2022, are applicable for real estate companies only when real estate is treated for accounting purposes as a fixed asset subject to depreciation.
  • The Supreme Administrative Court on 31 January 2023 held (case file III FSK 1556/21) that a taxpayer that contracts with a manager to rent or lease residential property is using the property in business activity, and thus the property is subject to tax rates applicable to real property used in business activity.
  • The Supreme Administrative Court on 27 January 2023 held (case file II FSK 1461/20) that a company that merged with its subsidiary is entitled to deduct intangible services costs incurred by the subsidiary, but the acquisition of the subsidiary does not result in any increase in the overall PLN 3 million limit under Article 15e(12) of the Corporate Income Tax Act on the deductibility of such costs. 

Read a February 2023 report prepared by the KPMG member firm in Poland

 

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