Dorota Białas

Steuerberaterin (Polen)
Associate Partner
Phone: +48 71 60 60 402

On 3 December 2015, the Finance Minister issued a general advance ruling (file no. FN3.8201.1. 2015) which allows tax-deductibility of expenses resulting from an early termination of derivative contracts, including currency options.

During the economic crisis parties to option contracts often decided to terminate it early in order to cut losses. That triggered additional expenses such as costs of settlements or costs of obtaining and servicing loans taken out to pay back liabilities resulting from the early contract termination. The Corporate Income Tax Act was unclear whether such expenses might be recognised as tax-deductible costs.

According to the general advance ruling currency options that hedged against the exchange risk connected with a taxpayer's business activity were used to "maintain and secure the revenue source" and, therefore, might be recognised as tax-deductible costs. Yet, the same does not apply to expenses for speculative options. 

This standpoint is favourable to taxpayers but it does not explain how to tell a hedging option from a speculative option. We would be glad to provide you with more information if you are interested in this issue. Tax advisors in the Rödl & Partner offices in Gdansk, Gliwice, Krakow, Poznan, Warsaw and Wroclaw, are at your disposal offering comprehensive tax advice in Poland.