With the use of factoring services, the full value of the debt sold can be accounted for in costs, but only if the transaction is not carried out between related parties — general interpretation of MF from 17 February 2020
On 17 February Minister of Finance published 3 general interpretations and therefore February is a month of abundant interpretation of the provisions made by the Minister in this form.
One of the fresh interpretations concerns the determination of the amount of income obtained when selling own claims under the factoring agreement. The reason for this general interpretation is the discrepancy noted by MF in the individual interpretations issued by the Director of KIS.
In the case of interpretations issued under the provisions of the PIT Act in the settlements issued, the interpretative authority stated that, where the factor buys the claim in 100% the gross value, the taxable person is not entitled to charge the expenditure incurred for the cost of obtaining revenue.
In contrast, in the interpretations published under the provisions of the CIT Act, the Director of KIS stated that the taxpayer could count the net receivables (excluding VAT) as the cost of obtaining income.
By issuing a general interpretation to remove these discrepancies, the Minister of Finance expressed the following position:
The disposal of claims to a third party is not related to the transaction between the creditor and the debtor — it is a separate economic event and the operation consequently produces income tax effects on the seller.
The taxpayer disposing of claims to the fact that 100% its gross value may be included in the cost of obtaining income in the full value of the debt transferred (including the amount of VAT).
Exception from Article 16(1)(39) The CIT Act, namely the prohibition on showing in the cost of obtaining income loss on the disposal of the claim, refers to a loss understood as a negative difference between the gross value of the claim and the amount of revenue resulting from its disposal.
This principle also applies to situations where a taxable person disposes of the same claim to two different facts, provided that these two transactions result in a transfer 100% the gross value of the debt disposed of.
The MF stated that its interpretation applies only to those debt disposal transactions which were not affected by the link within the meaning of the transfer pricing rules.
Source:
https://www.gov.pl/web/finanse/sprzedaz-przedmiotow-w-leasingu-opodatkowanie-szkolen-zawodowych-i-sprzedaz-wierzytelnosci-trzy-nowe-interpretacje-ogolne-mf