Changes in the settlement of the tax loss in Poland

Changes in the settlement of the tax loss as from 2019

Till the end of 2018 tax law provisions allowed to reduce the tax base by maximum 50% of the tax  loss from one fiscal year. As from 2019 it will be possible to settle the loss in the full amount in one of five subsequent years, but the deduction cannot exceed 5 million PLN in one year. The not deducted amount of the tax loss can be settled in the next years of this five-year period.  

The change will be applicable for the losses which occurred in 2019 which means in practice the new regulation will be used for the first time next year for calculation of 2020 taxes.

One-off deduction will not be mandatory, so the taxpayers will be allowed to decide if they want to use new regulations or reduce income from a given source within five fiscal years by maximum 50 percent, as was possible till now.