On 15 February 2021 the Minister of Finance, Funds and Regional Policy of Poland issued a public tax ruling on factoring regarding the quantification of tax-deductible costs attributable to sales of own receivables under factoring contracts. The new ruling is a step towards ending the disputes and doubts about the calculation of tax-deductible costs in income tax in those situations.
The new ruling on factoring applies where a taxpayer (principal) in Poland uses a factoring contract to assign to another party (factor) so-called “own receivables”, meaning claims from the taxpayer’s earlier sales of goods or services to a third party (debtor).
Source WTS
