On January 1, 2018, the amendment to the Personal Income Tax Act (PIT) came into force. The two most important changes introduced by the new regulation include: raising the limit of tax deductible costs for employees performing creative work and introducing a closed catalog of activities entitled to use 50% tax deductible costs.

Benefits coming from new refulation

The 50% limit raised to PLN 85 528 tax deductible costs (by the end of 2017, the limit was PLN 42,764). This raise of limit 50% tax deductible costs offers the opportunity to obtain both lower costs for the employer, as well as higher net remuneration for employees, In practice, the use of increased costs is connected with the possibility of using the R+D and IP Box discounts.

Catalog of entitled kinds of activity

Article 22 para. 9b of the PIT Act introduces a closed catalog of activities entitling to take advantage of 50%  tax deductible costs, which include, among others:

  • research, development or scientific activity;
  • creative activity in the field of architecture, interior design, landscape architecture;
  • construction engineering, urban planning of computer programs or computer games;
  • creation and production of audio and audiovisual activity;
  • derivative copyrights to prepare translation.

It is worth mentioning that the possibility of using a 50% tax deductible costs requires:

  • the employee's performance of the work constituting the subject of copyright law,
  • transferring copyrights from the employee to the employer
  • dividing employee's remuneration into the part related to the use of copyrights and the part related to the performance of other employee duties.
Salary for creative works Contract of employment  Contract of employment with creative activities 
Gross  400 000 PLN  400 000 PLN
 Net  263 00 PLN  290 00 PLN

Comparative table: maximum benefit to be achieved by the employer and employee.

How can we help?

  1. Analysis of the structure, specifics and scope of activities performed by employees in terms of the possibility of using 50% tax deductible costs in the company.
  2. Analysis of the amount of possible benefits, due to 50% tax deductible costs.
  3. Assistance in preparing applications for individual interpretations to appropriate tax authorities,
  4. Assistance in preparing the records necessary to effectively manage the effects of creative work of employees.
  5.  Analysis of the possibility of using additional R+D and IP Box reliefs.

Find out how we can help you


For more information, please contact our expert.
Agata Nie┼╝ychowska
Agata Nie┼╝ychowska
Tax Director, Partner