Poland: Tax disputes on credit guarantees at no charge finally solved
01 July 2012
Credit securities are recently among the tax issues of special
interest in Poland. Disputes arose on whether guarantee provided at no
charge or for the fee lower than on the market constitutes taxable
revenue for the entity that receives such credit collateral. The point
of these arguments was whether credit guarantee is a service that should
be remunerated at the moment it is issued or only in case the debtor
fails to pay secured liabilities. The issue was particularly important
for multinationals that widely use intra group guarantees to support
financing of their subsidiaries.
When should intra-group credit guarantee be remunerated?
The answer to...
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