Starting with January, the amended provisions of the Act on Corporate Income Tax have been in force, which relate to depreciation of property items contributed in-kind to partnerships. Now the principle of continued evaluation and depreciation of property items is applied in evaluation and depreciation. This means that if a contribution was previously recorded in the records of fixed and intangible assets of a partner, now the partnership has to include write-offs made by the partner in the books kept by the partnership. If the contribution was not depreciated at the partner’s, the value of the contribution for depreciation purposes will amount to the value of expenses borne by the partner for purchasing or manufacturing of the contribution.

The above provisions apply to incomes earned since January 1, 2011. At the taxpayers’ whose financial year started before January 1, 2011 the provisions binding until December 31, 2010 apply.

Contact person: Małgorzata Lewandowska, mlw@pnplaw.pl