Poland: Deduction limitation applies to company’s car rental payments (Supreme Administrative Court decision)
A decision concerning tax-deductible expense limitation under Article 16(1)(49a) of the Corporate Income Tax Act.
Deduction limitation applies to company’s car rental payments
The Supreme Administrative Court on 5 May 2023 held (case file II FSK 2699/20) that a company using a leased passenger car for its own purposes was subject to the tax-deductible expense limitation under Article 16(1)(49a) of the Corporate Income Tax Act.
The court found that simply because another provision (Article 16(5c) of the Corporate Income Tax Act) states that the limit referred to in Article 16(1)(49a) applies to payments constituting the repayment of the value of a passenger car does not mean that Article 16(1)(49a) does not apply to other payments under a lease or rental agreement, a hire agreement, or another similar agreement.
Read a May 2023 report prepared by the KPMG member firm in Poland
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