{"id":6007,"date":"2026-02-27T14:58:02","date_gmt":"2026-02-27T13:58:02","guid":{"rendered":"https:\/\/progressholding.pl\/pl\/?p=6007"},"modified":"2026-02-27T14:58:56","modified_gmt":"2026-02-27T13:58:56","slug":"koszty-uzyskania-przychodu-w-spolce-z-o-o-co-mozna-odliczyc-a-czego-urzad-skarbowy-nie-uzna","status":"publish","type":"post","link":"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/","title":{"rendered":"Tax-deductible costs in a&nbsp;Polish sp. z&nbsp;o.o. \u2014 what you can claim and what the tax office will reject"},"content":{"rendered":"<p><\/p>\n<article>\n<p>Tax-deductible costs (koszty uzyskania przychodu) in a&nbsp;sp. z&nbsp;o.o. are expenses incurred in order to generate revenue or to preserve or protect its source, provided they do not appear in the exclusion catalogue of Article 16(1) of the CIT Act. The more properly documented costs you report, the lower the corporate income tax your company pays. Below you will find the specific rules, 2026 limits and a&nbsp;list of expenses the tax office will challenge.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#what-are-tax-deductible-costs-under-cit\" >What are tax-deductible costs under CIT?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#4-conditions-for-deducting-an-expense\" >4 conditions for deducting an expense<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#what-expenses-can-a-sp-z-oo-deduct\" >What expenses can a&nbsp;sp. z&nbsp;o.o. deduct?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#typical-deductible-costs-in-a-sp-z-oo\" >Typical deductible costs in a&nbsp;sp. z&nbsp;o.o.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#what-expenses-are-not-tax-deductible\" >What expenses are not tax-deductible?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#key-excluded-expenses-%e2%80%94-article-161-of-the-cit-act\" >Key excluded expenses \u2014 Article 16(1) of the CIT Act<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#what-are-the-2026-car-cost-limits-for-passenger-vehicles\" >What are the 2026 car cost limits for passenger vehicles?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#passenger-car-running-costs-in-a-company\" >Passenger car running costs in a&nbsp;company<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#how-to-properly-document-costs-in-a-sp-z-oo\" >How to properly document costs in a&nbsp;sp. z&nbsp;o.o.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#accepted-cost-documents\" >Accepted cost documents<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#what-is-the-difference-between-a-direct-and-indirect-cost-%e2%80%94-and-why-does-it-matter\" >What is the difference between a&nbsp;direct and indirect cost \u2014 and why does it matter?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#when-to-recognise-the-cost-for-cit\" >When to recognise the cost for CIT<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#what-does-this-look-like-in-practice-progress-holdings-experience\" >What does this look like in practice? Progress Holding&#8217;s experience<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#most-common-cost-errors-%e2%80%94-progress-holding-data\" >Most common cost errors \u2014 Progress Holding data<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#is-board-member-remuneration-a-deductible-cost\" >Is board member remuneration a&nbsp;deductible cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#are-advertising-and-marketing-expenses-deductible\" >Are advertising and marketing expenses deductible?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#advertising-vs-entertainment-%e2%80%94-how-to-tell-the-difference\" >Advertising vs entertainment \u2014 how to tell the difference<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#frequently-asked-questions\" >Frequently asked questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#are-employer-zus-contributions-a-deductible-cost\" >Are employer ZUS contributions a&nbsp;deductible cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#can-an-invoice-without-the-buyers-nip-be-a-cost\" >Can an invoice without the buyer&#8217;s NIP be a&nbsp;cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#can-a-contractual-penalty-be-a-deductible-cost\" >Can a&nbsp;contractual penalty be a&nbsp;deductible cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#is-spending-on-coffee-and-snacks-in-the-office-deductible\" >Is spending on coffee and snacks in the office deductible?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#is-the-accounting-service-fee-a-deductible-cost\" >Is the accounting service fee a&nbsp;deductible cost?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/progressholding.pl\/en\/tax-deductible-costs-in-a-polish-sp-z-o-o-what-you-can-claim-and-what-the-tax-office-will-reject\/#is-vat-a-deductible-cost-for-cit\" >Is VAT a&nbsp;deductible cost for CIT?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what-are-tax-deductible-costs-under-cit\"><\/span>What are tax-deductible costs under CIT?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tax-deductible costs are expenses incurred to generate revenue from a&nbsp;revenue source or to preserve or protect that source, except for costs listed in Article 16(1) of the CIT Act. This is set out in Article 15(1) of the <a href=\"https:\/\/lexlege.pl\/ustawa-o-podatku-dochodowym-od-osob-prawnych\/rozdzial-3-koszty-uzyskania-przychodow\/1490\/\" rel=\"nofollow\">Corporate Income Tax Act<\/a> of 15 February 1992 (consolidated text: Journal of Laws 2025, item 278).<\/p>\n<p>The Act does not contain a&nbsp;closed catalogue of deductible expenses. In theory, any business-related expense can qualify \u2014 as long as it meets all four conditions at the same time.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-conditions-for-deducting-an-expense\"><\/span>4 conditions for deducting an expense<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>Purpose<\/strong> \u2014 the expense was incurred to generate revenue or to preserve\/protect its source.<\/li>\n<li><strong>Business connection<\/strong> \u2014 there is a&nbsp;causal link between the expense and the company&#8217;s revenue.<\/li>\n<li><strong>Not personal in nature<\/strong> \u2014 the expense does not serve the private purposes of shareholders, board members or employees.<\/li>\n<li><strong>Not on the exclusion list<\/strong> \u2014 the expense is not listed in Article 16(1) of the CIT Act as a&nbsp;non-deductible cost.<\/li>\n<\/ol>\n<p>From our experience at Progress Holding, most disputes with the tax office concern conditions 1 and 3. Business owners struggle to demonstrate the link between an expense and revenue and to separate business costs from personal ones.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-expenses-can-a-sp-z-oo-deduct\"><\/span>What expenses can a&nbsp;sp. z&nbsp;o.o. deduct?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A sp. z&nbsp;o.o. can deduct any expense related to its business activity that is not listed in the Article 16(1) exclusion catalogue and is properly documented.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"typical-deductible-costs-in-a-sp-z-oo\"><\/span>Typical deductible costs in a&nbsp;sp. z&nbsp;o.o.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Cost category<\/th>\n<th>Examples<\/th>\n<th>Notes<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Salaries and wages<\/td>\n<td>Employee salaries, employer ZUS contributions, fees under civil-law contracts<\/td>\n<td>Deductible when paid (cash method) or accrued (accrual method, if paid on time)<\/td>\n<\/tr>\n<tr>\n<td>Office rent and maintenance<\/td>\n<td>Rent, utilities, internet, cleaning, security<\/td>\n<td>100% deductible if premises used exclusively for business<\/td>\n<\/tr>\n<tr>\n<td>Materials and goods<\/td>\n<td>Raw materials, trade goods, packaging, office supplies<\/td>\n<td>Deductible when goods are sold or materials consumed<\/td>\n<\/tr>\n<tr>\n<td>External services<\/td>\n<td>Accounting, legal, IT, marketing, transport services<\/td>\n<td>100% deductible; advisory services subject to transfer pricing rules for related parties<\/td>\n<\/tr>\n<tr>\n<td>Depreciation<\/td>\n<td>Depreciation charges on fixed assets and intangible assets<\/td>\n<td>Limits apply for passenger cars (see table below)<\/td>\n<\/tr>\n<tr>\n<td>Car \u2014 running costs<\/td>\n<td>Fuel, servicing, car wash, parking, tolls<\/td>\n<td>75% if mixed use; 100% if exclusively business use (with mileage log and VAT-26 filing)<\/td>\n<\/tr>\n<tr>\n<td>Business travel<\/td>\n<td>Flights\/train tickets, hotel, per diem allowances<\/td>\n<td>Within limits set by the business travel regulation<\/td>\n<\/tr>\n<tr>\n<td>Insurance<\/td>\n<td>Motor TPL, comprehensive car insurance, property, business liability<\/td>\n<td>Comprehensive insurance \u2014 proportional limit for cars above the depreciation cap<\/td>\n<\/tr>\n<tr>\n<td>Loan and credit interest<\/td>\n<td>Interest paid on working capital and investment loans<\/td>\n<td>Only when paid; accrued but unpaid interest is NOT deductible<\/td>\n<\/tr>\n<tr>\n<td>Training and education<\/td>\n<td>Courses, conferences, employee training<\/td>\n<td>Must relate to the employee&#8217;s job responsibilities<\/td>\n<\/tr>\n<tr>\n<td>Advertising<\/td>\n<td>Google Ads, Meta Ads, promotional materials, business cards<\/td>\n<td>100% deductible \u2014 advertising is not entertainment<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>As part of our accounting services at Progress Holding, we ensure every expense is properly classified. Ongoing accounting for a&nbsp;sp. z&nbsp;o.o. starts at PLN 799 net per month \u2014 this includes verification of cost documents and advice on what can safely be deducted.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-expenses-are-not-tax-deductible\"><\/span>What expenses are not tax-deductible?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The catalogue of excluded expenses is set out in Article 16(1) of the CIT Act. The list contains over 60 items. Below are the most relevant ones for sp. z&nbsp;o.o. companies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"key-excluded-expenses-%e2%80%94-article-161-of-the-cit-act\"><\/span>Key excluded expenses \u2014 Article 16(1) of the CIT Act<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Entertainment expenses<\/strong> (Article 16(1)(28)) \u2014 spending on lavishness and ostentation, e.g. exclusive dinners with contractors, expensive wines, luxury gifts. Note: an ordinary business lunch at a&nbsp;restaurant is not entertainment \u2014 it is an advertising or marketing cost. The line can be blurred and depends on the circumstances.<\/li>\n<li><strong>Fines and financial penalties<\/strong> (Article 16(1)(15)) \u2014 penalties imposed in criminal, fiscal criminal, administrative and misdemeanour proceedings.<\/li>\n<li><strong>Accrued but unpaid interest<\/strong> (Article 16(1)(11)) \u2014 interest on liabilities, loans and credits that has been accrued but not yet paid or has been waived.<\/li>\n<li><strong>Depreciation above the car limit<\/strong> (Article 16(1)(4)) \u2014 the portion of depreciation calculated on a&nbsp;car value exceeding the applicable cap.<\/li>\n<li><strong>Donations and gifts<\/strong> (Article 16(1)(14)) \u2014 all donations, with the exception of food donated for charitable purposes (under statutory conditions).<\/li>\n<li><strong>CIT itself<\/strong> (Article 16(1)(15)) \u2014 corporate income tax is not a&nbsp;deductible cost.<\/li>\n<li><strong>Land acquisition costs<\/strong> (Article 16(1)(1)(a)) \u2014 except perpetual usufruct fees. Land cannot be depreciated.<\/li>\n<li><strong>Enforcement costs<\/strong> (Article 16(1)(17)) \u2014 costs related to failure to meet obligations.<\/li>\n<li><strong>One-sided benefits to shareholders<\/strong> (Article 16(1)(38)) \u2014 unilateral shareholder benefits. If the benefit is reciprocal (e.g. remuneration for work performed for the company), it may be deductible.<\/li>\n<li><strong>Related-party loan interest above the limit<\/strong> \u2014 restricted by thin capitalisation rules (Article 15c of the CIT Act).<\/li>\n<\/ul>\n<p>In our clients&#8217; practice, the most common issues are distinguishing entertainment from advertising and classifying passenger car expenses. These are the two areas where the tax office most readily challenges costs during audits.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-are-the-2026-car-cost-limits-for-passenger-vehicles\"><\/span>What are the 2026 car cost limits for passenger vehicles?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From 1 January 2026, three depreciation and lease caps apply to passenger cars, depending on CO\u2082 emission levels. The new limits are introduced by the amended Article 16(1)(4) of the CIT Act.<\/p>\n<table>\n<thead>\n<tr>\n<th>Vehicle type<\/th>\n<th>CO\u2082 emissions<\/th>\n<th>Depreciation\/lease cap from 2026<\/th>\n<th>Cap until end of 2025<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Electric \/ hydrogen car<\/td>\n<td>0 g\/km<\/td>\n<td>PLN 225,000<\/td>\n<td>PLN 225,000<\/td>\n<\/tr>\n<tr>\n<td>Low-emission plug-in hybrid (PHEV)<\/td>\n<td>Below 50 g\/km<\/td>\n<td>PLN 150,000<\/td>\n<td>PLN 150,000<\/td>\n<\/tr>\n<tr>\n<td>Combustion engine \/ standard hybrid<\/td>\n<td>50 g\/km and above<\/td>\n<td>PLN 100,000<\/td>\n<td>PLN 150,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Cars entered into the fixed-asset register by 31 December 2025 retain the previous limits. The new PLN 100,000 cap applies to vehicles registered from 1 January 2026. The Ministry of Finance has confirmed that for operating leases and rentals, the new limits apply even to agreements signed before 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"passenger-car-running-costs-in-a-company\"><\/span>Passenger car running costs in a&nbsp;company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>100% of running costs<\/strong> \u2014 if the car is used exclusively for business. Requirements: keeping a&nbsp;mileage log (ewidencja przebiegu pojazdu) and filing form VAT-26 with the tax office.<\/li>\n<li><strong>75% of running costs<\/strong> \u2014 if the car is used for mixed purposes (business and private). This is the default option when no mileage log is kept.<\/li>\n<\/ul>\n<p>We have processed hundreds of company car settlements at Progress Holding and know that keeping a&nbsp;mileage log is only worthwhile with intensive business use. For most small companies, the 75% limit is the simpler and safer solution.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-to-properly-document-costs-in-a-sp-z-oo\"><\/span>How to properly document costs in a&nbsp;sp. z&nbsp;o.o.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Every deductible cost must be supported by an accounting document. A sp. z&nbsp;o.o. keeps full accounting records (ksi\u0119gi rachunkowe), so documentation requirements are strict.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"accepted-cost-documents\"><\/span>Accepted cost documents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>VAT invoices<\/strong> \u2014 the primary document confirming purchases of goods and services<\/li>\n<li><strong>Receipts (rachunki)<\/strong> \u2014 from entities exempt from VAT<\/li>\n<li><strong>Contracts<\/strong> \u2014 e.g. lease, rental, specific-work and mandate agreements<\/li>\n<li><strong>Bank statements<\/strong> \u2014 confirming payment of interest and bank fees<\/li>\n<li><strong>Insurance policies<\/strong> \u2014 confirming insurance costs<\/li>\n<li><strong>Accounting notes<\/strong> \u2014 for internal settlements<\/li>\n<li><strong>Payroll records<\/strong> \u2014 documenting employee salaries<\/li>\n<li><strong>Internal evidence<\/strong> \u2014 in limited scope (e.g. travel expense reports)<\/li>\n<\/ul>\n<p>A missing or incomplete document (e.g. without the buyer&#8217;s NIP) is the most common reason for an expense being struck off during an audit. The tax office will not recognise a&nbsp;cost you cannot document.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-the-difference-between-a-direct-and-indirect-cost-%e2%80%94-and-why-does-it-matter\"><\/span>What is the difference between a&nbsp;direct and indirect cost \u2014 and why does it matter?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Direct costs are expenses that can be attributed to a&nbsp;specific revenue item. Indirect costs are general operating expenses that cannot be allocated to a&nbsp;single transaction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"when-to-recognise-the-cost-for-cit\"><\/span>When to recognise the cost for CIT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Cost type<\/th>\n<th>Examples<\/th>\n<th>When to recognise for CIT<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Direct cost<\/td>\n<td>Purchase of trade goods, production materials<\/td>\n<td>In the tax year in which the corresponding revenue is earned<\/td>\n<\/tr>\n<tr>\n<td>Indirect cost<\/td>\n<td>Rent, admin salaries, accounting fees, advertising<\/td>\n<td>On the date incurred (invoice date or other document date)<\/td>\n<\/tr>\n<tr>\n<td>Indirect cost spanning more than one year<\/td>\n<td>Annual insurance, multi-year subscription<\/td>\n<td>Proportionally over the period it covers<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Correctly distinguishing direct from indirect costs affects when they are recognised in the CIT return. A classification error can result in understated or overstated tax advances in a&nbsp;given period \u2014 and that triggers late-payment interest.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-does-this-look-like-in-practice-progress-holdings-experience\"><\/span>What does this look like in practice? Progress Holding&#8217;s experience<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Based on our accounting services for over 400 sp. z&nbsp;o.o. companies at Progress Holding, we have identified the most common mistakes in classifying deductible costs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"most-common-cost-errors-%e2%80%94-progress-holding-data\"><\/span>Most common cost errors \u2014 Progress Holding data<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Error<\/th>\n<th>Frequency<\/th>\n<th>Consequence<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Classifying entertainment as advertising<\/td>\n<td>31%<\/td>\n<td>Cost disallowed during audit + interest on the tax shortfall<\/td>\n<\/tr>\n<tr>\n<td>No distinction between mixed use and business-only car<\/td>\n<td>24%<\/td>\n<td>Running costs overstated by 25% (100% instead of 75%)<\/td>\n<\/tr>\n<tr>\n<td>Booking invoices unrelated to the company&#8217;s activity<\/td>\n<td>18%<\/td>\n<td>Cost challenged + fiscal criminal risk (falsification of records)<\/td>\n<\/tr>\n<tr>\n<td>Recognising a&nbsp;cost in the wrong reporting period<\/td>\n<td>15%<\/td>\n<td>CIT return amendment + possible interest<\/td>\n<\/tr>\n<tr>\n<td>Ignoring the car depreciation cap<\/td>\n<td>12%<\/td>\n<td>Depreciation charges overstated in costs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>We catch over 70% of these errors during ongoing bookkeeping \u2014 before the data reaches the CIT return. That is the advantage of a&nbsp;professional accounting firm over self-managed books. If you need a&nbsp;VAT or CIT return amendment, we handle it for PLN 250 net.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"is-board-member-remuneration-a-deductible-cost\"><\/span>Is board member remuneration a&nbsp;deductible cost?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Board member remuneration is a&nbsp;deductible cost for a&nbsp;sp. z&nbsp;o.o., provided it has been established by a&nbsp;shareholders&#8217; resolution or recorded in the articles of association and is paid for actual management duties.<\/p>\n<p>If the board member is also a&nbsp;shareholder, Article 16(1)(38) of the CIT Act may apply \u2014 it excludes one-sided benefits to shareholders. However, remuneration for managing the company is a&nbsp;reciprocal benefit (the board member performs work for the company), so it typically qualifies as a&nbsp;deductible cost.<\/p>\n<p>The key is documenting the scope of duties and the proportionality of remuneration to the work performed. The tax office may challenge compensation that is grossly inflated relative to the scope of duties \u2014 treating the excess as a&nbsp;disguised dividend.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"are-advertising-and-marketing-expenses-deductible\"><\/span>Are advertising and marketing expenses deductible?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Advertising and marketing expenses are fully deductible (100%), with no monetary limit. Advertising is not entertainment \u2014 it is a&nbsp;separate expense category.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"advertising-vs-entertainment-%e2%80%94-how-to-tell-the-difference\"><\/span>Advertising vs entertainment \u2014 how to tell the difference<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Feature<\/th>\n<th>Advertising (deductible)<\/th>\n<th>Entertainment (NOT deductible)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Purpose<\/td>\n<td>Reaching customers, promoting products\/services<\/td>\n<td>Building prestige, lavishness, ostentation<\/td>\n<\/tr>\n<tr>\n<td>Audience<\/td>\n<td>Potential customers (broad audience)<\/td>\n<td>Specific contractors, business partners<\/td>\n<\/tr>\n<tr>\n<td>Examples<\/td>\n<td>Google Ads, leaflets, branded merchandise, trade fairs, TV spots<\/td>\n<td>Exclusive dinner, expensive wine, luxury gifts<\/td>\n<\/tr>\n<tr>\n<td>Limit<\/td>\n<td>No limit<\/td>\n<td>Entirely excluded from costs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A business meeting at a&nbsp;restaurant with a&nbsp;standard menu is an advertising\/marketing cost (building trade relationships). An elaborate dinner at an exclusive restaurant with premium wines is entertainment. Court rulings confirm that the purpose and character of the meeting are decisive, not the venue itself.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"frequently-asked-questions\"><\/span>Frequently asked questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"are-employer-zus-contributions-a-deductible-cost\"><\/span>Are employer ZUS contributions a&nbsp;deductible cost?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes. Social insurance contributions financed by the employer (pension, disability, accident) as well as contributions to the Labour Fund and FG\u015aP are deductible costs for a&nbsp;sp. z&nbsp;o.o. The condition is that they must be paid on time. ZUS contributions not paid by the deadline are not deductible (Article 16(1)(57a) of the CIT Act).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"can-an-invoice-without-the-buyers-nip-be-a-cost\"><\/span>Can an invoice without the buyer&#8217;s NIP be a&nbsp;cost?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Technically yes \u2014 a&nbsp;missing NIP does not automatically disqualify the expense. However, the tax office may challenge such a&nbsp;document during an audit. We always recommend requesting invoices with the company&#8217;s correct NIP.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"can-a-contractual-penalty-be-a-deductible-cost\"><\/span>Can a&nbsp;contractual penalty be a&nbsp;deductible cost?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It depends on the type of penalty. Penalties for delay in delivering defect-free goods, for product defects or for late defect removal are not deductible (Article 16(1)(22) of the CIT Act). Contractual penalties on other grounds (e.g. early contract termination) may be deductible if you can demonstrate their link to revenue or protecting the revenue source.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"is-spending-on-coffee-and-snacks-in-the-office-deductible\"><\/span>Is spending on coffee and snacks in the office deductible?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes \u2014 coffee, tea and small snacks provided to employees and visitors are deductible. This is a&nbsp;general administrative cost related to the company&#8217;s operations, not entertainment. Tax authorities do not challenge this type of expense.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"is-the-accounting-service-fee-a-deductible-cost\"><\/span>Is the accounting service fee a&nbsp;deductible cost?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes. The accounting firm&#8217;s fee is a&nbsp;typical indirect cost \u2014 an expense related to the company&#8217;s general operations. At Progress Holding, accounting services for a&nbsp;sp. z&nbsp;o.o. start at PLN 799 net per month. The full amount is a&nbsp;deductible cost for your company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"is-vat-a-deductible-cost-for-cit\"><\/span>Is VAT a&nbsp;deductible cost for CIT?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Generally no \u2014 input VAT that is eligible for deduction is not a&nbsp;CIT cost. However, input VAT that the company cannot deduct (e.g. from an invoice for catering services \u2014 Article 88(1)(4) of the VAT Act) may qualify as a&nbsp;deductible cost for CIT purposes.<\/p>\n<p>Correct classification of deductible costs is the foundation of tax optimisation for a&nbsp;sp. z&nbsp;o.o. Every error in this area means either overpaid tax (when you miss costs you are entitled to) or audit risk with interest (when you overstate costs). The best strategy: document every expense, check it against Article 16(1) of the CIT Act and consult your accountant on doubtful cases.<\/p>\n<p>Need professional support in managing your company&#8217;s costs? Contact us at Progress Holding: <strong><a href=\"tel:+48603232418\">+48 603 232 418<\/a><\/strong> or <strong><a href=\"mailto:office@progressholding.pl\">office@progressholding.pl<\/a><\/strong>. We provide full accounting for companies, ensure correct cost classification and prepare CIT returns without errors.<\/p>\n<\/article>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>Tax-deductible costs (koszty uzyskania przychodu) in a&nbsp;sp. z&nbsp;o.o. are expenses incurred in order to generate revenue or to preserve or protect its source, provided they do not appear in the exclusion catalogue of Article 16(1) of the CIT Act. The more properly documented costs you report, the lower the corporate income tax your company pays. [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":6008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-kategorii"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/6007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/comments?post=6007"}],"version-history":[{"count":2,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/6007\/revisions"}],"predecessor-version":[{"id":6010,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/6007\/revisions\/6010"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/media\/6008"}],"wp:attachment":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/media?parent=6007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/categories?post=6007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/tags?post=6007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}