Overview of CIT calculations
The deadline for filing the annual CIT return for 2023 is fast approaching - for most taxpayers it will be at the end of March 2024.
Therefore, it is high time to prepare for the tax calculation, check the correctness of the methodology applied and clarify any doubts.
So that you do not expose yourself to the risk of penalty interest and possible personal sanctions, but also do not unnecessarily overpay tax.
To this end, we offer a review of the CIT calculation for the 2023 tax year.
The scope and cost of the review is subject to individual agreement (it may be limited to a review of the calculation methodology alone, or it may involve a broader analysis). Below is an example of the scope.
We note the need to review the so-called flipped income tax. This may relate to payments made to foreign related parties (e.g. for royalties, interest or intangible services). The rules on this tax have changed since the beginning of 2023, placing the burden of proof on the Polish taxpayer that the conditions for considering the payments made as “passed-through income” have not been met.
If you are interested in our offer, you are welcome to contact us.
Review of CIT calculations – sample scope
- Verification of the reconciliation of the accounting result to the tax result in terms of the methodology applied (verification of the correctness of the inclusion of individual revenue and cost items, including items added to or excluded from the Company’s accounting result within the calculation).
- Analyse the correct allocation of income and expenses to the appropriate sources (income from capital gains and other sources of income and exempt activities).
- Verification of the methodology for the allocation of costs and revenues (and adjustments) at the turn of the fiscal years (allocation of costs and revenues to the appropriate fiscal year).
- Verification of the calculation of debt financing costs.
- Application of allowances and deductions from income.
- Verification of the accounting for the changes that came into effect in 2023 (tax on flipped income).
- Verification of the approach taken on significant business issues of tax concern (e.g. accounting for contractual penalties) – option.
- Verification of the most significant unusual transactions that occurred in 2023. – option.