Poland: Right of perpetual usufruct of land is fixed asset for corporate income tax purposes (court decision)

Value of the perpetual usufruct right to land in tax-deductible costs for purposes of the corporate income tax law

Fixed asset for corporate income tax purposes (court decision)

The Supreme Administrative Court (SAC) held that in situations when the tax law does not clearly define the right of perpetual usufruct as a fixed or intangible asset, it is reasonable to refer to the accounting law under which the right of perpetual usufruct of land is classified as a fixed asset.

The case identifying information is: II FSK 2229/19) (10 May 2022)

The case related to a company that had doubts as to whether, in dealing with the disposal of a part of a mining plant, it was entitled to recognize the value of the perpetual usufruct right to land in tax-deductible costs for purposes of the corporate income tax law.

The Director of the National Revenue Information Service stated that the company was not entitled to do so, but the SAC disagreed.

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

 

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