Remission of debt as tax-deductible cost
Day-to-day business practice involve situations where it becomes necessary to write off debts (receivables) against the debtor. How to account for such an event for corporate income tax (CIT) purposes? Initially, it should be noted that the term “remission of debts” is understood as a voluntary release of the debtor from the debt. Such a
- Published in CIT
The right to image – “withholding” tax
Business practice has accustomed us to athletes, artists or other famous figures promoting various goods and services. Accounting follows marketing. The contract providing the right to the image for promotional purposes regulates the issues of remuneration. In the case of non-residents, the question arises whether this type of remuneration is subject to withholding tax in
- Published in CIT
The dates of CIT 2020 settlement and the preparation of financial statements – postponed
Today, a Decree of the Minister of Finance was signed, pursuant to which the annual CIT settlement date for 2020 was extended until June 30, 2021. Also today, a Decree of the Minister of Finance was signed, under which the deadlines for preparing financial statements for 2020 will be extended for: • private sector units
- Published in CIT
Due diligence – transfer pricing documentation
The Ministry of Finance has published a draft “Explanations” on transfer pricing documentation, regarding the presumption of due diligence. Let us remind you that, in accordance with the amended income tax regulations, taxpayers are required to prepare transfer pricing documentation also in transactions with unrelated parties, if the beneficial owner of such entity has its
- Published in CIT
Extension of terms – TPR, CIT
On the 25th of February, the Sejm adopted an amendment according to which the deadlines for submitting information on TPR transfer pricing and a declaration on the preparation of local transfer pricing documentation were extended: until September 30, 2021 for entities whose reporting and documentation obligations expire in the period from February 1, 2021 to
- Published in CIT
4 new general rulings
The Ministry of Finance published, yesterday and today, 4 new general ruling concerning: changes in the scope of the leasing contract and sale of the subject during its term, settlements when using fuel cards, sale of own receivables in factoring, and taxation of vocational training. Changing the lease agreement, selling leased items The Minister of
Verifying contractors in 2021, must one be even more diligent?
As part of counteracting the erosion of tax receivables, the legislator has for some time been imposing on taxpayers new obligations to verify contractors. Their common denominator is to make the taxpayer (or remitter) “jointly responsible” for the correct tax settlements under the transaction. The taxpayer (or the remitter) should, in particular, verify the status
2021 loan in tax settlements
How will loans concluded in 2021 differ from those in previous years in terms of taxation? Significant changes in tax law regulations that come into force at the beginning of each new year no longer surprise anyone. Practice shows that the changes concern many aspects, and their main principle is a “spot” intervention in order
- Published in CIT
Amendments to the CIT and PIT Acts published in the Journal of Laws
Today, the provisions amending the Polish CIT and PIT Act were published in the Journal of Laws. Taxation of limited partnerships (spółka komandytowa) and other changes The Act of November 28, 2020 introduces the following changes : limited partnerships and general partnerships having their seat or management board in the territory of the Republic of
- Published in CIT
WHT and the gross-up clause
Payment of remuneration to foreign entities may result in the obligation to collect the withhold tax (WHT). This applies to the payment of dividends, interest, royalties or remuneration for specific services. Theoretically, the tax is borne by the recipient. Therefore, it should receive its value after the WHT deduction. Nevertheless, some foreign contractors demand to
- Published in Bez kategorii, CIT