Tax Alert, 2 December 2013

On 4 September 2013 the Director of Tax Chamber in Poznan issued an individual interpretation (ref. no. ILPB4/423-194/13-2/DS) relating to the obligation of adjusting tax deductible costs resulting from depreciation allowances in case of untimely payment of lease instalments.

In line with the interpretation, if the company pays lease instalments within contractual deadlines (i.e. the company pays lease instalments in accordance with the payment schedule agreed upon with the lessor), the obligation to adjust tax deductible costs due to recognized depreciation allowances will not arise. However, the adjustment will be required if the value of paid principal instalments is lower than the sum total of accrued depreciation allowances and the company does not pay these instalments within 30 days after the due date. 

Should you be interested in discussing this topic in further detail, please do not hesitate to contact Mazars Tax Advisory Department.

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