Poland MOF Clarifies Tax Treatment of Bad Debt Relief on Unpaid Invoices

The Polish Ministry of Finance March 15 clarified bad debt relief for taxpayers with unpaid invoices. The agency clarified that: 1) the relief applies to individual income tax, corporate income tax, and VAT; 2) taxpayers have the option of reducing their income tax base by the value of the debt, and adjusting their returns after payment is received; and 3) taxpayers can modify the VAT amounts on their receivables within 90 days, for outstanding taxable transactions that remain unsettled beyond their payment deadline. [Poland, Ministry of Finance, 03/15/23]

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