CIT reliefs. Part 3
Through our third publication concerning the possibility of applying for Corporate Income Tax reliefs, we present the key principles governing the so-called relief for consolidation as well as relief for entities supporting sport, culture, and education (CSR relief).
- Consolidation tax relief
Who may apply?
This form of relief is available to entities that acquire shares or stocks, provided that, among other things, the company being acquired conducts the same business as that of the taxpayer or the activities of such a company can reasonably be considered ones that support the taxpayer's business.
How much can you gain?
The consolidation relief allows you to deduct expenses connected with the purchase of shares or stocks (e.g., expenses for legal services, notary, court, and stamp fees). The amount deducted cannot exceed PLN 250,000.00.
- CSR tax relief
Who may apply for the CSR tax relief?
This form of relief can be applied for by entities that incur expenses connected with:
- sports activities,
- cultural activities,
- supporting higher education and science.
How much can you gain?
As a result of applying the CSR tax relief, taxpayers may deduct from the tax base 50% of certain expenses incurred in connection with CSR activities (e.g., the purchase of sports equipment, covering the costs of organizing or participating in sports competitions, financing a sports scholarship, or financing cultural activities carried out by art colleges and public art schools). This means that taxpayers who earn income other than that derived from capital gains can deduct a total of 150% of the expenses they incur - 100% will be tax-deductible by default, and then 50% of the same expenses will again be deducted from the tax base. The relief allows for a maximum deduction of up to the amount of income earned in a given tax year.
Should you have any additional questions relating to Corporate Income Tax reliefs, please contact TIAS Tax Department at: email@example.com.
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