Poland: Contractual penalty for failure to provide services on time not excluded from tax-deductible costs

Supreme Administrative Court decision

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January 9, 2025

The Supreme Administrative Court on December 19, 2024, held (case II FSK 409/22) that the payment of a contractual penalty for failure to provide services on time was not covered by Article 16(1)(22) of the CIT Act, which expressly excludes certain contractual penalties and damages from tax-deductible costs, such as damages relating to the defectiveness of goods or works.

Read a January 2025 report prepared by the KPMG member firm in Poland

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