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.
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.
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:
It is worth mentioning that the possibility of using a 50% tax deductible costs requires:
Comparative table: maximum benefit to be achieved by the employer and employee.
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