Relief for CSR activity

What’s going to change?

Polish New Deal introduces the possibility to deduct from the tax base an amount up to 50% of the tax deductible costs incurred for the: 

• sport activity 
• cultural activity  
• activity supporting higher education and science 

– no more than taxpayer’s income from other than capital gains sources of income.

What are the eligible costs?

The Act defines what costs are understood to be eligible for the relief in each of the areas listed, e.g.: 

• costs incurred on financing of a sports club or a sports scholarship may be regarded as costs of sporting activities, 
• on the other hand, costs incurred on financing of cultural institutions listed in the relevant register or activities carried out by artistic academies may be regarded as costs incurred for cultural activities, 
• whereas costs supporting higher education and science are, e.g. expenditures on scholarships, financing certain types of studies or internships.

What does it mean?

The area of CSR is becoming increasingly important nowadays and companies more frequently put activities connected with broadly understood corporate social responsibility on their agenda. It is worth verifying whether the costs incurred in this respect may contribute to tax savings of the company.