Hedging of price elements – regulatory and tax considerations

Katarzyna Knawa; Konrad Stolarski

doi:10.18778/1509-877X.2020.01.02

Authors

Katarzyna Knawa Tax advisor, counsel at FinTaxLegal Długosz Stolarski, Radcowie Prawni Spółka Partnerska
Konrad Stolarski Attorney-at-law, partner at FintaxLegal Długosz Stolarski, Radcowie Prawni Spółka Partnerska

DOI:

https://doi.org/10.18778/1509-877X.2020.01.02

Keywords:

MIFID2, hedging, derivatives, tax, financial supervision

Abstract

Due to the fact that the market price of raw materials has indirect or even direct impact on goods and services’ price, hedging of price elements play a key role in a successful business. The purpose of this article is to present available instruments to address or even eliminate raw material price level insecurity, in particular through the acquisition off financial instrument, like derivatives. The purpose of this article is also to present the theoretical tax implications of hedging of price elements, and to analyse cash flows as a price adjustment mechanism.

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