Poland: Summaries of recent Supreme Administrative Court decisions

Retroactive changes to depreciation rates; application of VAT split payment mechanism; special economic zone activities; no permanent establishment without profit

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February 25, 2025

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

  • The court on February 18, 2025, held (case II FSK 633/22) that a taxpayer is allowed under Article 16i(5) of the CIT Act to make retroactive changes to depreciation rates for past tax years.
  • The court on February 19, 2025, held (case I FSK 1797/21) that the split payment mechanism required under Article 108a(7) of the Value Added Tax (VAT) Act does not apply to the settlement of liabilities by way of set-off.
  • The court on February 19, 2025, held (case II FSK 651/22) that subsidies from the Guaranteed Employee Benefits Fund (GEBF) used to co-finance remuneration of employees engaged as part of the Special Economic Zone (SEZ) activities qualifies as income from tax-exempt activities in line with Article 17(1)(34) of the CIT Act.
  • The court on February 19, 2025, held (case II FSK 609/22) that a permanent establishment (PE) in Poland is deemed to exist under the Poland-Denmark income tax treaty if profit can be attributed to it.

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

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