Electricity price increase relief not subject to corporate income tax

Olga Rybak, Rafał Kosiń
Rzeczpospolita

Taxpayers from energy-intensive industries are eager to use governmental support payable on the back of increasing prices of natural gas or electricity. Unfortunately, they continue to be uncertain whether these amounts represent taxable income for them in terms of corporate income tax.

While lower courts consistently rule that the support is a subsidy and hence exempt from income tax, tax authorities still claim it is not.

Ultimately, then, the dispute will be resolved before the Supreme Administrative Court. But given the top court’s taxpayer-friendly case law in relation to similar schemes, here, too, taxpayers can count on judgments in their favour.