Lower taxable income? The tax authorities have loosened the regulations for some municipalities in Poland

From this year, some companies will be able to use individual depreciation rates, which allow for faster write-off of investment costs. In practice, this means lower taxable income and lower tax in the first years of depreciation of new buildings. Entrepreneurs from communes with a high level of unemployment will benefit from the refreshed preference.

From January 1, 2026, entrepreneurs running micro, small and medium-sized enterprises will gain easier access to preferential depreciation of buildings and structures. One of the most problematic criteria, i.e. the commune's wealth index, disappears from the regulations. In practice, the right to individual depreciation rates only the level of unemployment will decide.

One criterion instead of two

So far, preferential depreciation was only available in communes and cities with county rights that met two conditions at the same time: high level of unemployment (at least 120 percent of the national average) and low wealth index. Many locations were eliminated due to this second requirement. It was met by communes and cities with county rights, where the commune's wealth index was lower than 100%. wealth index of all communes or cities with poviat rights.

Advertisement

From 2026, this problem disappears. It is enough that the investment is carried out in an area where unemployment significantly exceeds the average for the entire country.

The new regulations will speed up the recognition of expenses as costs

According to the regulations, individual depreciation rates are set on easier terms applicable to fixed assets that are buildings non-residential (premises) and buildingsfor which after December 31, 2025:

1. occurred the decision on the building permit becomes finalor
2. the deadline for filing an objection has expired against the submitted construction notification or issuing a certificate confirming that there are no grounds to raise such an objection, or
3. occurred introduction for the first time to the register of fixed assets and intangible assetsif the construction of this fixed asset does not require obtaining a building permit or submitting a construction notification, or for other reasons no such decision or notification has been issued.

Individual depreciation rates will enable entrepreneurs faster write-off of investment valueand thus earlier recognition of all expenses in costs. This results in a reduction of income and the tax base, which in the first years after the start of depreciation of new buildings translates into lower income tax.

The publication contains affiliate links.

Source: