Tax-exempt rental income; transfer pricing documentation with lump-sum taxation; partnership liquidation subject to VAT
A report that includes summaries of recent court decisions in Poland.
June 26, 2024
The KPMG member firm in Poland prepared a report that includes summaries of the following court decisions:
- The Provincial Administrative Court in Gdańsk on June 19, 2024, held (case file I SA/Gd 219/24) that the short-term rental of residential premises lies within the scope of activities permissible under Article 5(1)(2) of the Act on Family Foundations; and therefore income drawn by a family foundation from this kind of activity is subject to exemption under Article 6(1)(25) of the CIT Act.
- The Provincial Administrative Court in Poznań on June 18, 2024, also held (case file I SA/Po 214/24) that income from profits of a family foundation from leasing real estate of a civil law partnership is also subject to exemption under Article 6(1)(25) of the CIT Act.
- The Provincial Administrative Court in Gdańsk held (case file I SA/Gd 76/24) that a company applying a lump-sum taxation scheme to its income must still provide transfer pricing documentation for transactions with related entities.
- The Supreme Administrative Court on June 13, 2024, held (case file I FSK 1448/20) that the transfer of intangible assets by a general partnership to a partner in connection with its liquidation is subject to value added tax (VAT). However, because the transfer is not documented with an invoice, the partner will not be able to reduce their output tax by the input tax on the service provided to them.
Read the June 2024 report