MF updates tax explanations on the fund for investment purposes
The Ministry of Finance has published a new version of the explanations regarding the fund for investment purposes. The previous version of the document was dated 21 January this year.
In the explanations, the taxpayers will find the explanation of the provisions of the CIT Act regarding recognition of write-offs for the fund established for investment purposes, separated in reserve capital, as tax deductible costs. This is a preference, which allows for the settlement of costs before the commencement of the investment.
The explanations present the key issues related to the operation of the fund for investment purposes, i.a.: entities entitled to this solution; conditions regarding the creation of the fund, manner of making write-offs and dates of disbursement of funds; references to accounting records and examples.
– The new version of the explanations takes into account the amendments to Article 15.1hd.1 of the CIT Act, introduced by the Act of 9 December 2021 amending the Excise Duty Act and certain other acts (Journal of Laws 2021, item 2427). As explained by the MF, the changes concern the effects of an expense from the fund which was financed or returned to the taxpayer in any form (the effects will not include a sanction in the form of temporary loss of the right to make write-offs). The explanations are 22 pages long and are published on the ministry’s website – explains Łukasz Kupryjańczyk, partner at Thedy & Partners.