Poland: Summaries of recent Supreme Administrative Court decisions

Character of profits of converted sole proprietorship; taxation of prizes granted to athletes; deductibility of expenses incurred by parent in support of subsidiary

Share
October 17, 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 October 10, 2024, held (case file II FSK 722/24) that undistributed profits of an entrepreneur operating a sole proprietorship retain their character as previously taxed profits after the business is converted into a z o. o. company (Polish private limited company).
  • The court on October 10, 2024, held (case file FSK II 92/22) that prizes granted to athletes as part of business activity they conduct constitutes business income and not income from “other sources” taxed at a flat rate.
  • The court on October 9, 2024, held (case file FSK II 45/22) that expenses incurred by a parent company that serve its subsidiary cannot be considered its own tax-deductible costs under Article 15(1) of the CIT Act. The notion that the parent company may increase its profit from selling shares in the subsidiary is merely an indirect connection and insufficient to support deductibility by the parent.

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

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP\'s . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline