In its judgment of February 12, 2009 (case file no. III SA/Wa 1684/08), the Voivodship Administrative Court decided that expenses borne of the issuing of new shares on the stock exchange can be included in a tax deduction.

The Court found in favour of a limited liability company, agreeing that the increasing of a company’s capital allows the quality of services rendered to be improved, which in turn can result in the broadening of the scope of activity and subsequently in an increase of income. In connection with a stock exchange debut, it is possible in particular to include in the tax deductibles those expenses related with the increasing of the initial capital (notary and court fees, costs of announcements, tax on civil law transactions and expenses borne for legal consulting). These costs also include expenses related to the procedure of transforming a company into a joint-stock company and debuting on the stock-exchange (including the costs of preparing the transformation plan and notary fees).

Contact person: PaweÅ‚ Nowak, pn@pnplaw.pl