Mandatory contributions to the tourism guarantee fund paid by travel agencies constitute the cost of obtaining income in CIT. This results from the interpretation of the National Tax Information Director dated 24 May 2017 reference no. 0114-KDIP2-3.4010.81.2017.1.JBB
The interpretation concerns a limited liability company organising tourist events. Amendment Act dated 29 August 1997 on tourism services (Journal of Laws of 2016, item 187 i.e. as amended, further: UOUT) caused that from 26 November 2016 The taxpayer is obliged to pay contributions to the Tourist Guarantee Fund (hereinafter: TFG). The contribution is non-refundable. The purpose of this fund is, among other things, to allow participants to return to the country in the event of insolvency of the travel agency.
The company constructs contracts with customers in such a way that TFG contributions form an integral part of the price of the tourist service.
The applicant pointed out that the contribution is an expenditure definitely incurred by which it fulfils one from the conditions for considering it as the cost of obtaining income.
Fulfillment of this obligation is a condition for conducting business activities within the tourism industry in the field of the organisation of tourist events and brokering of such services.
By Article 15(1) Corporate Income Tax Act (CIT) the cost of obtaining revenue is the costs incurred in order to generate revenue or preserve or secure the source of revenue.
The applicant pointed out that ‘the tax cost should be definitively incurred in order to obtain income or to preserve its source’ and that, therefore, the compulsory contribution should be considered as the cost of obtaining income, the applicant’s own position was considered correct.
Author:
Paweł Kula From 2016 related to Russell Bedford Poland. Graduated from law school. Tax Advisor No. 12969. He specializes in excise duties and transfer pricing records. Author of tax-related articles published on industry websites.