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Recognition of depreciation costs as income generation costs P 11/24

Ref.No. P 11/24

JUDGMENT
IN THE NAME OF THE REPUBLIC OF POLAND

Warsaw, 21 November 2024

The Constitutional Tribunal, composed of:

Zbigniew Jędrzejewski – Presiding Judge
Krystyna Pawłowicz
Stanisław Piotrowicz
Rafał Wojciechowski – Judge Rapporteur
Jarosław Wyrembak,

Recording Clerk – Grażyna Szałygo,

having considered, at the hearing on 21 November 2024, the question of law referred by the Voivodeship Administrative Court in Poznań, as to whether:

Article 23(1)(45a)(a) of the Personal Income Tax Act of 26 July 1991 (Journal of Laws – Dz. U. of 2018, item 1509) in conjunction with Article 4(1) of the Act of 15 June 2018 amending the Personal Income Tax Act, the Corporate Income Tax Act, as well as the Act on the Flat Tax on Certain Types of Personal Income (Journal of Laws – Dz. U. item 1291, as amended) – insofar as it does not permit recognising as income generation costs the following: depreciation charges on the initial value of tangible assets and intangible assets, acquired free of charge via donations which are exempt from the inheritance and donations tax, the depreciation of which began but did not end before 1 January 2018 – is consistent with the principle of the protection of ongoing interests, arising from Article 2 of the Constitution;

adjudicates as follows:

Article 23(1)(45a)(a) of the Personal Income Tax Act of 26 July 1991 (Journal of Laws – Dz. U. of 2024, item 226, as amended) in conjunction with Article 4(1) of the Act of 15 June 2018 amending the Personal Income Tax Act, the Corporate Income Tax Act, as well as the Act on the Flat Tax on Certain Types of Personal Income (Journal of Laws – Dz. U. item 1291, as amended) – insofar as it rules out the possibility of recognising as income generation costs the following: depreciation charges on the initial value of tangible assets and intangible assets, acquired free of charge via donations which are exempt from the inheritance and donations tax, the depreciation of which began but did not end before 1 January 2018 – is inconsistent with the principle of the protection of ongoing interests, arising from Article 2 of the Constitution.

The ruling was unanimous.

Zbigniew Jędrzejewski
Krystyna Pawłowicz
Stanisław Piotrowicz
Rafał Wojciechowski