Incentive programs

as an attractive form of additional remuneration

A carefully designed and effectively implemented incentive program can be beneficial both for the participants and the employer. This is because theidea of incentive schemes is  to combine the participants’ achievements with the company’s growth. Greater involvement in the development of the company and, consequently, the achievements of eligible persons and their additional rewardsare reflected in an increase in the employer’s financial performance. Incentive programs are effective HR management tool to retain key employees or managers and attract new talent.  But they also have tax implications which need to be taken into account.

Therefore, employers are very often faced with the challenge of designing an incentive program in such a way that it is attractive to the participants, while at the same time being sensible from the tax and social security contributions perspective for both the employer and the beneficiaries.

The Personal Tax and Employer Advisory team at MDDP has extensive experience in this area and specialises, among other things, in verifying the terms and conditions of all types of incentive programs and assessing their tax and social security implications.

How can we help?

We will assist in creating an incentive scheme model tailored to the individual needs of the employer

We will provide assistance in defining the terms and conditions of the program

We will draw up necessary documents and provide support in the incentive scheme implementation

We will determine the source of income for participants receiving incentive benefits

We will verify whether the incentive program qualifies for a preferential tax regime

We will assess the tax and social security consequences related to the participation in incentive schemes of all types

We will identify the company's obligations as a remitter of PIT and ZUS contributions

We will determine whether the company may classify expenses incurred in connection with the incentive program as tax deductible costs

Feel free to contact us

Anna Misiak

Partner | Tax adviser
T: (+48) (22) 376 52 86

Agnieszka Telakowska-Harasiewicz

Senior Manager | Tax adviser
T: (+48) 503 971 849

Rafał Sidorowicz

Senior Manager | Tax adviser
T: (+48) 506 788 582

Dorian Jabłoński

Senior Consultant
T: (+48) 504 400 031

Karolina Demska

Senior Consultant | Tax adviser
T: (+48) 503 972 813