Poland Tax Deductions

• The initial allowance to a resident is in the sum of PLN 30,000.
  The credit is allowed is on the lower bracket in the salary tables.
• Deduction for a social security payment.
• Deduction for donations.
  (up to a limit).
• Deduction for medical expenses.
• Deduction for professional training courses.
• Alimonies for children, up to PLN 700 per month.
• Children allowance, PLN 1,112 per child.

Business Deductions in Poland

• Offset of losses A loss may be carried forward for 5 years on condition that in any one of the 5 years, no more than 50% of the loss carried forward is utilized.
  It is not possible to offset a loss retroactively.
• Transactions between associated parties Transactions with associated companies with whom there is a material connection of ownership or control are closely inspected by the tax authorities to compare prices with accepted market prices.
  The documentation of all transactions must be kept for which the amount in any one tax year is in excess of a sum stated by law.
• Financing expenses for a company are allowed for the higher of PLN 3 million or 30% of the EBITDA .
• Donations Donations for defined aims, such as for educational, technological institutions and more are recognized up to 6% of the taxable income.
• Depreciation expenses The customary method of depreciation in Poland is the straight line method.

Depreciation of Fixed Assets in Poland