Lidia Strzelecka, Joanna Parysek

The article discusses how tax authorities and administrative courts differ in their approach to calculation of thin capitalization limit. According to the former, deductibility is limited either by the PLN 3 million threshold or by the 30% EBITDA limit on exceeding borrowing costs. In contrast, courts say that the PLN 3 million threshold should be applied in combination with the 30% EBITDA limit. The article also refers to Finance Ministry’s promise to resolve these controversies when amending the law.