On 10 December 2021 Tax explanations have been provided on the rules for the clearing of corporate tax funds from the fund for investment purposes. This is a new tax model for the accounting of investment expenditure by including them in the cost of obtaining income even before the start of the investment.
The use of the fund for investment purposes is possible from 1 January 2021 From next year, however, thanks to the solutions contained in the tax package of the Polish Deal, this preference will become even more available. It will be abolished in 2021 income limit (100,000,000 PLN Each year).
Apart from public limited liability companies and limited liability companies, the solution will also be open to limited liability companies, limited liability companies and limited liability companies, simple joint stock companies and cooperatives.
The tax explanations present key and practical issues related to the Fund's investment activities, among others:
- entities entitled to this preferential arrangement,
- the conditions for setting up the fund, the way in which write-downs are made and the time limits for spending funds,
- references to accounting records and practical examples.
The fund's preference for investment is addressed to a similar group of entities as in the case of a lump sum on company income (the so-called Estonian CIT).
These are entities with a simple organisational structure, with the most limited access to debt financing and active operational activities, among others, with a minimum level of employment.
However, it should be remembered that the use of write-downs for the fund for investment purposes is one from a preference for a taxable person settling in a ‘classical’ CIT system (this is therefore a certain alternative to a lump sum on company income).
In the case of an investment fund, a condition for carrying out certain investments is necessary. This is due to the main objective and nature of this preferential solution. This regulation is highly pro-investment in order to stimulate business development and support overall economic growth through investment incentives.
Tax explanations will be binding on the tax administration.
Get the explanation below.