Poland: Tax-deductible costs; income from IP and credit default swaps (court decisions)

A report that includes summaries of recent court decisions

22 August 2023

The KPMG member firm in Poland prepared a report that includes summaries of the following recent court decisions.

The Regional Administrative Court in Warsaw on 17 August 2023 held (case file III SA/Wa 716/23) that expenses incurred in relation to contractual penalties due to interrupted order execution qualify for the exception to the general rule of non-deductibility for contractual penalties or damages, and thus may be treated as tax-deductible costs.
The Supreme Administrative Court on 11 August 2023 held (case file II FSK 175/21) that in the case of the sale of products, the price of which includes eligible income from qualified intellectual property rights referred to in Article 24d(7)(3) the corporate income tax law, the income from qualified intellectual property rights will not always be equal to the full selling price of the product.
The Supreme Administrative Court on 11 August 2023 held (case file II FSK 221/21) that 50% tax-deductible costs can be applied to payment received by the creator of an invention for the right to transfer rights to obtain a patent, which is essentially a transfer of ownership rights over the invention, but it cannot be applied to default interest, which is not related to ownership rights in the invention.
The Supreme Administrative Court on 11 August 2023 held (case file II FSK 216/21) that remuneration paid under credit default swap transactions is subject to Article 21(1)(2a) of the corporate income tax law.
The Regional Administrative Court in Warsaw on 17 August 2023 held (case file III SA/Wa 583/23) that the taxpayer’s sale of accounts receivable under a datio in solutum agreement was not subject to Article 16(1)(39) of the corporate income tax law, meaning that the taxpayer was entitled to recognize the face value of the transferred receivables as tax-deductible costs under Article 15(1) of the corporate income tax law.

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

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