Poland: Deductibility of interest on late payments; depreciation by real estate companies

Recent court decisions

Depreciation by real estate companies

The KPMG member firm in Poland prepared a report that includes summaries of the following recent court decisions relating to the deductibility of interest on late payments and the ability of real estate companies to depreciate assets not treated as depreciable fixed assets for accounting purposes:

  • The Supreme Administrative Court on 23 March 2023 held (case file III SA/Wa 2277/20) that interest on late payments may be treated as deductible costs. The court found that the exclusion from deductible costs of contractual penalties and damages for defective or late delivery of goods, works, and services must be interpreted narrowly.
  • The Regional Administrative Court in Warsaw on 28 March 2023 held (case file III SA/Wa 2480/22) that the cap on tax depreciation corresponding to the value of write-downs or write-offs made in accordance with accounting regulations applies only when real estate companies treat assets included in group 1 of Fixed Assets Classification as depreciable fixed assets.

Read an April 2023 report prepared by the KPMG member firm in Poland



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