Poland: Look-through approach for dividend exemption; tax treatment of losses incurred by Romanian branch

Summaries of recent court decisions

Summaries of recent court decisions

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 14 September 2023 held (case file III SA/Wa 1513/23) that the conditions for exemption under Article 22(4) of the CIT Act can be satisfied by an entity that is not the immediate dividend beneficiary, but a beneficial owner thereof. Thus, if for an uninterrupted period of at least two years, a beneficial owner holds at least 10% of shares in an intermediate company, that in turn holds a similar share in the dividend-paying company, the beneficial owner meets the conditions for exemption.
  • The Supreme Administrative Court on 19 September 2023 held (case file III SA/Wa 688/23) that a company can offset losses incurred by its branch in Romania under the same conditions as those applicable to losses incurred in Poland. The right to offset such losses, however, only starts to apply when the branch is wound up, with no possibility to use it before that time. The losses can be carried forward over five subsequent tax years from the moment they were incurred by the branch.
  • The Regional Administrative Court in Wroclaw on 19 September 2023 held (case file I SA/Wr 84/23) that a delivery of goods as a result of fraud to a place from which they were stolen is not subject to value added tax (VAT).

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



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