Revolutionary changes in the area of tax deductible costs of corporate income tax taxpayers shall come into force in Poland on January 1,2018. According to the wording of amendment (which is already adopted in final wording), a limit will be introduced for tax deductibility of costs incurred on some intangible services (e.g. advisory services – but with exceptions like accounting or legal services, market research, advertising services, data processing services, insurance) if these expenses were incurred to related entities or to entities with tax residency in countries applying harmful tax competition. Also fees for use or the right to use rights or values will be subject to this regulation. The threshold provided in the amendment to CIT Act is 5% tax EBITDA. Expenses incurred on said services and exceeding the above limit will be non-deductible. Simultaneously, the legislator provided that the expenses up to PLN 3,000,000 (without any reference to EBITDA) will not be triggered by the above restriction, only the relevant surplus. Finally, if in the given year the taxpayer was not allowed to treat given expense as tax deductible cost due to the above restriction, taxpayers will be entitled for 5 years carry forward of such costs.
New limits for intangible services as tax deductible costs in CIT from 2018