Tax preferences and deductions in PIT for 2024

Polish tax regulations offer taxpayers many opportunities to reduce their tax liability for 2024.

In 2024 Polish annual tax return the taxpayer may include deductions handed over until the end of December 2024 for purposes:

public benefit organizations,
blood donation (the so-called blood relief),
religious worship as well as charitable and welfare activities of the Church,
vocational training to public schools providing vocational training and public establishments and centers.

At the same time, it is important to remember to appropriately confirm the donation made (donations made in cash will not be deducted) and that for the above deductions we will deduct no more than 6% of the taxpayer's income (note: the exception is donations made to the Church's charitable and welfare activities, which we will deduct without limit).

Examples of deductions and preferences in the PIT for 2024 that are worth mentioning

Expansion relief

Expansion relief allows for an additional deduction from the tax base for costs related to expanding sales markets, both domestically and abroad. It consists of expenses incurred by the taxpayer to increase revenues from the sale of their products. It can be used by taxpayers whose income is taxed on general rules according to the tax scale or a flat tax.

The relief allows for the settlement in income tax of 200% of the incurred costs:

100% as a cost of obtaining income,
100% as a deduction under the relief.

The maximum amount a taxpayer can deduct in a given tax year is PLN 1 million.

Preferential settlement for spouses and single parents in 2024

Under current tax regulations, a marriage entered into any month in 2024 entitles you to a joint tax return for the entire 2024 year. In years before 2022, to benefit from a joint tax return settlement in a given tax year, spouses had to be married for the entire year.

When filing a 2024 PIT, a single parent will still be able to take advantage of the single parent relief after meeting certain conditions. Filing joint tax returns with a child may be more beneficial for a single parent than filing an individual tax return.

The relief for robotization

The relief for robotization in 2024 will be used by taxpayers settling their income according to the tax scale and flat tax. Importantly, together with the submitted PIT-36 or PIT-36L settlement, a list of costs deducted under the relief should be submitted according to the template (PIT-RB or PIT-RBS appendix), including, among others, the costs of purchasing brand new: industrial robots; machines and peripheral devices related to robots or systems and devices used, for example, to monitor and service robots.

It is possible to deduct from income a sum equal to 50% of the tax deductible expenses incurred for robotization in the tax year, but this amount cannot be higher than the non-agricultural business income earned in that tax year, and the taxpayer may incur expenses related to robotization between 2022 and 2026. It is only possible to take advantage of the relief in the PIT return in which expenses for robotization were included.

Deduction for cultural and sports activities

In 2024, a taxpayer running a non-agricultural business activity may also deduct from income 50% of the expenses incurred for sports, cultural activities or activities supporting higher education and science, but up to a limit not exceeding the amount of income earned in a given tax year from business activity. At the same time, the deduction applies to entrepreneurs who settle their income with a flat tax or general rules and is only possible in a tax return filed in the year in which the expenses were incurred.

Some examples of deductible costs under the deduction (subject to certain conditions) are expenses for financing, e.g.

sports club,
sports scholarship,
a sports event,
cultural institutions,
cultural activities of art colleges and public art schools.
academic scholarships.

What is important, the taxpayer is obliged to submit an information PIT-CSR listing the deductible costs incurred, by the deadline for filing the tax return in which he/she takes advantage of the relief.

Other reliefs and deductions available in 2024

Taxpayers who want to reduce their PIT liability for 2024 can take advantage of the following reliefs: rehabilitation relief, internet relief, thermo-modernization relief, or the so-called "relief for young" or "children's relief," as well as: the IKZE deduction.

Moreover, people who have sold a property before the end of 5 years after the purchase can avoid paying tax (this is known as a housing relief) if they use the profit from the sale of the property for their own housing purposes within 3 years of the sale.