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Insufficient capitalization (tax capitalization) - a notion of tax law relating to the financing of subsidiaries by affiliated entities. In Poland, according to the relevant tax law (as of April 2015), interest on loans granted to a company by its shareholder does not constitute tax deductible when:

The cost of revenue does not also include interest on loans given to a company by another company when:

These provisions shall apply mutatis mutandis to cooperatives, cooperative members and the own fund of such cooperative. Bibliography Read about legal notices in Wikipedia.

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