The Supreme Administrative Court in its judgment of 25 August 2010 case file II FSK 627/09 held that only a registered trade mark may be depreciated. The Court ruled according to the provisions of Article 16b(1) pt. 6 of the Polish Act of 15 February 1992 on the Legal Entities’ Income Tax – LEIT – (in Polish: Ustawa o podatku dochodowym od osób prawnych) consolidated text published in Journal of Laws (Dziennik Ustaw) of 2000, No. 54, item 654 with subsequent amendments.

Art. 16b. 1. The following intangible assets, acquired and fit for commercial use as at the date of acceptance for use, shall be depreciated, subject to Article 16c:
1) the cooperative ownership right to an apartment;
2) the cooperative ownership right to commercial premises;
3) the right to a single-family house in a housing cooperative;
4) copyright or related proprietary rights;
5) licences;
6) rights to: inventions, patents, trademarks, designs;

The SAC noted although that the LEIT does not provide the definition of registered trade mark or trade mark itself. However, not the same “mark”, but right of protection to the trade mark, which must meet the criterion for classification as a property right (intangible assets), is subject to depreciation.

Categories: Art. 16(1) LEIT | income tax | Polish Act on Legal Persons Income Tax | Polish institutions | Polish Supreme Administrative Court | Tax Chamber | tax law | Tax Office | trade mark depreciation.