Dorota Białas

Tax adviser (Poland)
Associate Partner
Phone: +48 71 60 60 402

Losses are inevitable in any production process. Enterprises try to minimise them by carrying out current repairs and modernising their machinery, training their employees etc. However, such measures do not eliminate losses connected with material quality, IT-system failure, changes in customer order specifications or suppliers’ failures.

According to the interpretation of the Director of the Tax Chamber in Katowice of 6 November 2015, file no. IBPB-1-3/4510-298/15/SK, the value of such losses may be treated as tax-deductible costs. The loss must, however, be a random event, beyond the taxpayer’s control. The taxpayer must in no way contribute to the damage or make it easier to occur. Any fault of the taxpayer, such as a failure to act with due care required in a given case, or failure to make effort to avoid the damage, means that the damage cannot be regarded as a random event. Moreover, the damage must be real and properly documented.

If you conduct a business activity which involves frequent losses, we recommend reviewing your procedures and practices to prevent such losses.

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.