Effects of Granting Freebies by Entrepreneurs to Contractors in Income Tax
Abstract
In economic practice, there are often situations where an entity organizes promotional campaigns under which it provides its contractor with free products. Usually it is connected with the necessity to purchase a certain amount of goods covered by the action. Such action is aimed at increasing sales and promoting a given product. The provision of freebies may consist, in particular, in the provision of goods for free or at a significantly reduced price: directly as well as through a third party. Nevertheless, such action is not neutral from the point of view of tax law. In this paper, the author will present the legal effects of granting contractors freebies in personal and corporate income tax. The author hypothesizes that the legal effects depend on the form of the gratis. However, in no case will the contractor receive any revenue in connection with the bonus.
Keywords:
Income tax, gratis, revenue, tax deductible costReferences
Bartosiewicz, A., Kubacki, R. (2015). PIT. Komentarz. Warszawa: Wolters Kluwer.
Brzostowska, M., Kubiesa, P. (2022). PIT. Komentarz. Warszawa: Wolters Kluwer.
Małecki, P., Mazurkiewicz, M. (2021). CIT. Podatki i rachunkowość. Komentarz. Warszawa: Wolters Kluwer.
Modzelewski, W. (red.). (2022). Komentarz do ustawy o podatku dochodowym od osób prawnych. Legalis.
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
