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Poland: Timing of tax exemption; inheritance and donation tax exemption; insurance proceeds not exempt income

Summaries of recent decisions of the Supreme Administrative Court

April 23, 2024

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

  • The court on 16 April 2024 held (case file II FSK 881/21) that the right to income tax exemption under Article 17(1)(34a) of the CIT Act begins in the month in which the taxpayer incurs costs of investment implementation and is not deferred until profit is realized from the taxpayer’s investment.
  • The court on 18 April 2024 held (case file III FSK 51/22) that the taxpayer was entitled to the inheritance and donation tax exemption under Article 4a(1)(2) of the Inheritance and Donation Tax Act when cash was transferred to the account of a third party (and not the beneficiary) from whom the beneficiary was to buy a residential unit.
  • The court on 16 April 2024 held that insurance proceeds did not qualify as income originating from business activity in a special economic zone subject to the material exemption under Article 17(1)(34) of the CIT Act because they are merely a substitute for that income and indirectly linked to income from business activity.

Read an April 2024 report prepared by the KPMG member firm in Poland

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