Poland: Taxation of employee incentive shares; supplementary capital contribution deductible

Summaries of recent Supreme Administrative Court decisions

Summaries of recent Supreme Administrative Court decisions

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

  • The court on 16 January 2024 held (case II FSK 452/21) that an employee must pay tax under Article 17(1)(10) of the PIT Act with respect to shares in a parent company of a Polish entity received as part of an incentive plan only when the shares are sold. The employee is not required to pay tax upon begin granted the right to shares or being granted the shares because acquisition of financial derivatives and then shares based on them does not generate revenue.
  • The court on 17 January 2024 held (case file II FSK 484/21) that a taxpayer could include in tax-deductible costs not only the direct costs of acquiring or taking-up shares, but also the indirect costs incurred in order to enable the take-up or acquisition of shares (i.e., supplementary capital contributions).

Read a January 2024 report prepared by the KPMG member firm in Poland



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