On 27 April 2011, the Supreme Administrative Court (“SAC”) issued a resolution favourable for a taxpayer having great importance to all employees participating in Employee Equity Plans (“EEP”) (ref. II FSK 1410/10). On 7 June 2011 a written justification of the resolution was published.

The SAC stated among others that preferential acquisition of a foreign company’s shares by employees who are not employed by this company does not constitute employment income within the meaning of the Article 12 Paragraph 1 of the Personal Income Tax Act (“PIT Act”).
According to the application investigated by the SAC, all plans were approved by the foreign company and the Polish company had no influence on the appointment of the employees entitled to participate in the plans. However, the costs of participation of the Polish employees in the plans were cross charged to the Polish company.

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