50% tax deductible costs

as a way to increase employees' salaries

Increasing competition in the labor market forces the employers to race for the best employees – to aiming to retain key talents and attract new ones. Alongside a positive working atmosphere and an extensive employee benefits system, an attractive remuneration scheme is  a crucial factor for employees when deciding where to work.

Therefore, employers face the challenge of how to design effective remuneration systems without onloading the company’s budget.

Many employees, especially those making creative work, are entitled to benefit from 50% tax deductible costs. A careful analysis and implementation of an appropriate model for applying this tax preference may provide employees with higher net salary of even several thousand zlotys per year without additional costs for the employer.

The Personal Tax and Employer Advisory team at MDDP has extensive experience in identifying employees entitled to 50% tax-deductible costs and in implementation this scheme in practice.

How can we help?

  • We will verify whether your employees may benefit from the preferential tax regime with 50% tax deductible costs, taking into account the nature of your business, the scope of your employees’ duties and the results of their work.
  • We will determine the terms and conditions for applying 50% tax deductible costs in your company.
  • We will assist you in proper implementation of 50% tax deductible costs, including drawing up appropriate documentation.

Example

Comparison of the effects of implementing the 50% tax deductible costs system for selected wage levels*.

Gross monthly salaryAverage net salary without 50% tax deductible costsAverage net salary with 50% tax deductio appliedEmployee benefit (per month / per year)
8 000 PLN5 784 PLN6 115 PLN+ 331 PLN/ + 3 972 PLN
10 000 PLN
7 147 PLN7 561 PLN+ 414 PLN / + 4 968 PLN
15 000 PLN
10 030  PLN11 195 PLN+ 1 165 PLN / + 13 980 PLN
20 000 PLN
12 907 PLN15 191 PLN+ 2 284 PLN / + 27 408 PLN
30 000 PLN
18 663 PLN21 863 PLN+ 3 200 PLN / + 38 400 PLN
* Assuming the application of 50% tax deductible costs to 80% of gross salary.

Feel free to contact us

Ania Misiak 600
Anna Misiak

Partner | Tax adviser
E: anna.misiak@mddp.pl
T: (+48) (22) 376 52 86

Agnieszka Telakowska Harasiewicz kwadrat
Agnieszka Telakowska-Harasiewicz

Senior Manager | Tax adviser
E: agnieszka.telakowska-harasiewicz@mddp.pl
T: (+48) 503 971 849

Rafał Sidorowicz
Rafał Sidorowicz

Senior Manager | Tax adviser
E: rafal.sidorowicz@mddp.pl
T: (+48) 506 788 582