Just like in most countries certain expenses cannot be tax deductible in Poland. Since this issue is quite complicated and it is regulated by CIT and PIT acts and non-uniform practice of tax offices please contact us.
As a general rule in order to be recognised as tax deductible cost in Poland, an expenditure incurred by a taxpayer should meet the listed below criteria:
• the expenditure was incurred with purpose of generating income, retaining or protecting sources of income,
• it is not listed in the catalogue of expenditures not being tax-deductible costs.
The revenue earning costs can be classified as direct costs or other costs.
As a rule, direct costs are tax deductible in the tax year in which the related revenue was earned. Other costs are tax deductible on the date they were incurred.