Important Judgment on the Costs of Accommodation for Employees Seconded to Polan

The case concerned the tax implications of providing free accommodation to an employee seconded to Poland, following a negative tax interpretation obtained by the taxpayer.

The court ruled in favor of MDDP’s client, stating that the accommodation costs paid by the employer should not be considered as income for the employee.

This case is different from previous ones on this topic, as the interpretation was sought by a foreign employee seconded to work in Poland, employed by a foreign entity, rather than by the delegating company. It is important to highlight that the court considered arguments stating that both the value of in-kind benefits provided by employers and their reimbursement of any expenses incurred by seconded employees, such as travel, meals, and accommodation costs, are not regarded as part of the employee’s remuneration.

According to the court, any expenses incurred in this regard do not constitute a benefit for the employees and are fully borne by the employer sending the employee from one EU Member State to another, including Poland.

Work abroad, including the employment of foreign workers in Poland, is becoming increasingly common. This judgment is significant for all foreign individuals who face additional tax burdens imposed by the Polish tax authorities due to employer-provided benefits related to their work in Poland.

The representatives in the case were Anna Misiak, Head of the Personal Taxes and Employer Advisory Team, and Jakub Warnieło, Head of the Tax Litigation Team at MDDP.