Tax on written off liabilities

The tax on overdue and written off liabilities can be very high and difficult to pay.

Pursuant to the Debt Collection Act, which is being processed, it is proposed to introduce a ban on amicable debt collection in relation to debts that, due to the statute of limitations, can no longer be pursued in court. In this way, such receivables will become unenforceable and, as expected, will most likely be written off. This will entail consequences in the form of the obligation for the debtors to immediately pay the income tax on the written-off amounts together with accrued interest. For debtors who are already facing financial problems, it may be impossible to pay such tax. In turn, according to representatives of the Ministry of Finance, the exemption from the need to pay the tax would be simply unfair. Moreover, in this way a signal would be sent about preferential treatment of debtors who do not pay their debts. Nevertheless, you can always apply for a postponement of the payment date, spreading it into installments or redemption.

Source: https://www.pb.pl/niedzwiedzia-przysluga-dla-dluznikow-1173968