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Expenses Incurred to Finance Trade Union Activities Not Deductible

Written by
Raczkowski largest boutique firm focusing on HR law.
What is the situation in Poland on expenses incurred to finance trade union activities?

Expenses incurred to finance activities of the trade unions are not tax-deductible, the Supreme Administrative Court affirmed in a ruling of 28 August 2009 (II FSK 517/08). According to Art. 33 and 33(1) of the Act on Trade Unions, an employer is obliged to provide trade unions with space and equipment necessary to conduct their activities and to transfer membership fees from the employees’ salaries. The court decided that the related costs do not come within the definition of tax-deductible costs because they are not costs incurred to earn revenues.