Intangible services purchased by SSE entrepreneurs – a favourable resolution of the Province Administrative Court in Kraków on the limit of costs pursuant to Article 15e of the CIT Act

Michał Wilk, acting for a Client of Andersen in Katowice, has won a favourable decision of the Province Administrative Court in Kraków (Case Ref. No I SA/Kr 577/19) on the method of calculation applied by entities operating in special economic zones to determine the limit of costs of intangible services acquired from related parties.

The court in Kraków accepted the taxpayer’s arguments that, when calculating the limit of costs and comparing the value of purchased services against the amount of PLN 3 million not subject to limitation, one should recognise only the costs allocated to revenues from activities not subject to tax exemption in the zone (i.e. the so-called taxable activity).

This is one of the first resolutions concerning this issue. The matter is crucial for many companies operating in special economic zones which face the challenge of limiting the costs of services purchased within a group.

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