Contractual penalties and damages are often an element of dispute with tax authorities. The legitimacy of recognizing them in tax-deductible costs is repeatedly questioned. An example of this type of compensation is compensation paid by transport companies/carriers for the loss of cargo caused by theft. Can such compensation be included in tax-deductible costs? In accordance

Unreliable contractors who are in arrears with payments are the bane of many entrepreneurs. On the one hand, such transactions generate income, and thus income tax to be paid, and on the other hand, they do not cause any real gain. However, if certain conditions are met, it is possible to include uncollectible receivables in

An important item in taxpayers’ settlements is broadly understood “employee costs”. Among them, we often deal with a situation where employees first incur costs and then apply for their reimbursement. In practice, this often applies to items such as the costs of: prescription glasses/contact lenses or the costs of business trips (business trips). If invoices

The Ministry of Finance is working on the draft act in the field of sealing CIT and PIT. Detailed solutions include: The regulations would be adopted by the Government in the third quarter of this year. It is not certain if the changes will be applicable from 2026.

The electronic portal of the National Register of Debtors (Pol. KRZ) has been operating for some time. It is an electronic, publicly available register in which announcements on bankruptcy or restructuring proceedings are published. Are the documents downloaded from there relevant to the settlement of bad debts in CIT? At the outset, let us remind

In practice, it happens that taxpayers buy machines and software. The question then arises as to how to classify the purchase of such software for CIT purposes. Pursuant to Article 16b(1)(4) and (5) of the Polish CIT Act, subject to Article 16c, copyright or related economic rights acquired from another entity that are suitable for

Software is an important part of many companies’ operations. However, its correct classification in terms of accounting and tax may raise doubts. When should software be considered an intangible asset, and when is it only an element of a fixed asset? The answer to this question depends on its nature and how it is used.

We would like to describe a situation we encountered at one of our clients. The taxpayer bears the costs of transport. The rates and scope of services provided are known, but the invoice is provided by the carrier only after some time. Can we recognize these expenses in a given period as tax costs despite

The annual settlement is a good time to look at “bad debts” and the possibility of settling them in tax costs in CIT. In principle, the “costing” of an uncollectible receivable, previously accounted for as income due, may take place either by: Ad. a If the claim is written off, the creditor must have one