Most forms of tax relief are granted in the form of a deduction from taxable income:
The initial allowance to a resident is in the sum of PLN 573. 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 1,170 per child.
BUSINESS DEDUCTIONS
In addition to the deductions / credits listed above, deductions and business expenses may be claimed according to the following:
Offset of losses A loss from one source of income may be offset against income from another source in the same tax year.
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 in which a foreign resident owns more than 25% of the shares or control of the borrower, will not be allowed when the amount of the loan is more than 3 times higher than the paid up share capital of the company taking the loan.
Interest in respect of debts to income tax is not a recognized expenditure
Donations Donations for defined aims, such as for educational, technological institutions and more are recognized to a limit.
Depreciation expenses The customary method of depreciation in Poland is the straight line method.
In certain circumstances, when real estate, machinery and equipment is concerned, depreciation according to the "depreciated balance" method may be requested.
Local companies in areas stricken with unemployment are eligible, subject to certain conditions, to increased rates of depreciation.
