Legal news

Will employee medical packages be taxed or not?

The Voivodship Administrative Court in Warsaw adjudicated in the verdict of August 20, 2008 (file no. III SA/Wa 625/08) that employees do not have to pay income tax on medical packages which were provided for them and their families by their employers. The Court determined that employees do not have to pay the tax since the fact they were provided such a benefit did not create a tax obligation. Only the value of benefits already received is regarded as revenue.

Initial leasing fee - one-time inclusion into costs

The Voivodship Administrative Court in Warsaw adjudicated in the verdict of August 8, 2008 (file no. III SA/Wa 221/08) that a company which makes use of assets under a leasing agreement can include the entire initial leasing fee into costs at the time of payment.

This position differs from that of the Minister of Finance, who believes that this fee should not be included into costs on a one-time basis, but rather requires that it be settled proportionally over the duration of the leasing agreement.

Tax abolition for Poles working abroad

On August 6, 2008, the act of July 25, 2008 on special solutions for taxpayers obtaining some income outside the territory of the Republic of Poland came into force. The act defines the rules for abolishing tax for those taxpayers who in the years 2002-2007 obtained income from working outside Poland and did not pay tax in Poland.

The possibility to use the tax abolition will be limited in time and applications for using it will have to be submitted within two months from the date of the act coming into force in the case of income obtained in 2002, and within six months of the act coming into force in all other cases.

Loans conducted abroad not subject to tax

Pursuant to the interpretation issued by the director of the Tax Chamber in Warsaw (file no. PPB2/436-159/08-2/AS) a loan obtained by a Polish company from abroad is not subject to the tax on activities which fall within the scope of civil law.

The above interpretation was issued in an individual case concerning a loan granted by one Polish company to another. The loan agreement was concluded abroad and the money was kept in a foreign bank account belonging to the lender at the time the agreement was concluded.

Pursuant to the act on tax on activities which fall within the scope of civil law, activities whose subjects are located abroad or property rights exercised abroad can be taxed only if two conditions are met: Firstly, the buyers should be domiciled or have their seat in the territory of Poland. Secondly, the civil activities should be performed in the territory of the Republic of Poland.

Compiled by Peter Nielsen & Partners Law Office
Contact: Mirosław Stefanik