Poland: Goodwill not subject to “capital duty” (court decision)

The SAC’s determinations have binding authority over all administrative courts.

The SAC’s determinations have binding authority over all administrative courts.

A bench of seven judges of the Polish Supreme Administrative Court (SAC) determined that goodwill does not constitute a property right under Article 1(1)(1)(a)) of the Tax on Civil Law Transactions Act and, consequently, is not subject to the “capital duty” (podatek od czynności cywilnoprawnych—PCC).

The case identifying information is: III FPS 2/21 (21 February 2022)

The issue of subjecting goodwill to PCC has long been subject to divergent legal interpretations. However, the SAC’s determinations have binding authority over all administrative courts (including the provincial administrative courts and the SAC itself).

Read a February 2022 report [PDF 238 KB] prepared by the KPMG member firm in Poland

 

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