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