We continue our success story in the area of exemptions for holding companies

This time, the case concerned CIT exemption on the sale of shares in a subsidiary 🏢➡️🏢

One of the conditions for benefiting from the exemption is that more than 50% of the subsidiary’s assets must not consist of real estate located in Poland.

The Director of the National Tax Administration agreed with GWW’s position that the term ‘real estate’ in the CIT Act should be understood in accordance with the definition in the Civil Code and that even if the majority of the subsidiary’s assets in the balance sheet are:

• ‘fixed assets under construction’,
• ‘advances for fixed assets under construction’,
• this does not automatically mean that we are not entitled to the exemption, and each item must be analysed individually in terms of the definition of ‘real estate’ in the Civil Code. (ref. 0111-KDIB2-1.4010.175.2025.3.DD).

This is very good news, especially for holding companies selling shares in subsidiaries that are still at an early stage of investment and should not be automatically excluded from the exemption.

We would also like to remind you of an earlier landmark ruling by the Supreme Administrative Court, which was received by our experts. In case II FSK 1425/24, the Supreme Administrative Court upheld our argument and confirmed that by requiring information on the status of all dispersed shareholders, including entities listed on stock exchanges and, indirectly, natural persons, the claimant (GWW’s client) was imposed obligations that were impossible to fulfil.

As the Supreme Administrative Court emphasised at the time, in such exceptional circumstances, in order to ensure the fair and effective application of the law, it is necessary to depart from a rigid literal interpretation in favour of a purposive interpretation.

 

Details: https://gww.pl/przelomowy-wyrok-nsa-w-sprawie-zwolnienia-holdingowego-sukces-zespolu-gww/

 

This is further confirmation that an efficient approach to regulations, good argumentation and knowledge of the practices of authorities allow for the effective protection of taxpayers’ interests.

 

Co-authors of the entry: Sebastian Gumiela, Patrycja Woźniewska, Julia Dziedzic, Przemysław Matyja