Poland: Debts that are sold can no longer be charged into tax-deductible costs (court decision)

If debts are sold that were deducted as unrecoverable, corresponding adjustment to tax-deductible costs must be made.

Can no longer be charged into tax-deductible costs (court decision)

The Supreme Administrative Court held that debts that have been sold are no longer treated as deductible because of being unrecoverable, meaning that they can be no longer charged into tax-deductible costs.

However, they are subject to deduction as belonging to the sold debts category. Thus, if debts are sold that were deducted as unrecoverable, corresponding adjustment to tax-deductible costs must be made.

The case identifying information is: II FSK 2502/19 (19 May 2022)

Read a May 2022 report prepared by the KPMG member firm in Poland

 

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