Already almost 280 thousand. people use 50% costs of obtaining income – according to data from Grant Thornton. This is one option if you want to pay lower taxes and thus receive a higher salary every month. Employees benefit from copyright costs, but for companies it can also be a good argument to encourage them to choose full-time employment.
— As statistics show, the use of 50% copyright costs of obtaining income is a tool increasingly used by entrepreneurs. This not only allows for an effective increase in employees' net remuneration while maintaining the same gross level, but is often a factor influencing the positive conclusion of the recruitment process. The trend is still growing and I do not expect it to change in the near future – says Łukasz Boszko, tax advisor and manager in the Grant Thornton Advisory Department.
We explain what the 50% potential is. costs, who can use them and what conditions must be met.
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Who benefits from 50% proprietary tax deductible costs?
Using this solution requires meeting several conditions (we remind them later in the article). One of the key issues is that the remuneration covered by 50% of the costs concerns the use of copyrights by creators or related rights by performers.
In practice, however, as the authors of the Grant Thornton report “50 percent tax-deductible costs. How do taxpayers use the potential of this solution?” point out, almost every business entity will have people who perform activities that qualify for such costs.
Interest in this solution is systematically growing. In 2024, over 285 thousand PIT taxpayers obtained income from an employment relationship, to which a 50% tax rate was applied. costs. This is according to data from the Ministry of Finance.
As experts Grant Thornton note, still only less than 2 percent taxpayers (several thousand people) use the limit on copyright costs. So the potential is great.
How much is left in your pocket if you can factor in 50 percent of the costs?
You can deduct 50% from the tax base. revenues obtained, but not more than PLN 120,000 PLN per year. Experts emphasize that these costs cannot be applied to the entire employee's remuneration, but only to the part that corresponds to the creative activities actually performed.
An additional limitation is the obligation to pay at least the minimum wage without any increased costs. “In practice, this means that even if an employee performs 100 percent creative work, the amount of the minimum wage must be settled anyway, without the possibility of applying 50%. “costs of obtaining income” – remind the authors of the report.
According to Grant Thornton's calculations, already with revenues of PLN 10,000. PLN per month and assuming that the employee's creative work constitutes 40 percent. entire working time, the annual profit is approximately PLN 2,880, i.e. PLN 240 per month.
Why are companies interested in 50% costs
The higher the revenue and the more time devoted to creative work, the higher the profit.
Therefore, as Łukasz Boszko says, the use of proprietary tax-deductible costs is a tool increasingly used by entrepreneurs.
— Moreover, the changes currently being processed in the scope of the National Labor Inspectorate and the potential risk of reclassification of B2B contracts into employment contracts may result in some companies will completely abandon the B2B model. This will then significantly increase the number of people on employment contracts, who will undoubtedly want to use legally available solutions, such as proprietary tax deductible costs. – says Łukasz Boszko.
Which professions benefit from 50 percent? costs
Although, as the authors of the report point out, specialists from the IT industry most often use preferences, but interest in proprietary costs is also growing among architects, construction engineers, research and development (R&D) employees and journalists.
Persons conducting business activities may benefit from 50% of the costs of obtaining income creative, research or artistic (Article 22(9b) of the Personal Income Tax Act). This preference includes:
1. creative activity in the field of architecture, interior design, landscape architecture, construction engineering, urban planning, literature, fine arts, industrial design, music, photography, audio and audiovisual works, computer programs, computer games, theater, costume design, set design, directing, choreography, artistic violin making, folk art and journalism;
2. artistic activity in the field of acting, stage, dance and circus art, as well as in the field of conducting, vocal and instrumental music;
3. audio and audiovisual production;
4. journalistic activities;
5. museum activities in the field of exhibition, science, popularization, education and publishing;
6. conservation activities;
7. dependent right referred to in Art. 2 section 2 of the Act of February 4, 1994 on copyright and related rights (Journal of Laws of 2022, item 2509), to prepare another person's work in the form of a translation;
8. research and development, scientific, scientific and teaching, research, research and teaching activities as well as teaching activities conducted at the university.
This is a closed directory, which means that only representatives of the above professions can use this solution.
Moreover, the result of the creator/artist's work must be a work within the meaning of the Act on Copyright and Related Rights. Pursuant to this Act:
— the subject of copyright is any manifestation of creative activity of an individual nature, established in any form, regardless of value, purpose and method of expression (work),
— in particular, the subject of copyright are works: expressed in words, mathematical symbols, graphic signs (literary, journalistic, scientific, cartographic and computer programs); plastic; photographic; violin making; industrial design; architectural, architectural-urban and urban planning; musical and verbal-musical; stage, stage and musical, choreographic and pantomime; audiovisual (including film).
Grant Thornton experts also indicate how courts approach the premises of a “work”. They point to the following “work” criteria: manifestation of creative activity, lack of repeatability, formulaic nature, possibility of creative freedom and expression, lack of reproductive activity, original, individual character, creative purposefulness, personal approach, result of human (creator's) work, fixed work in any form, result of intellectual effort.
Author: Łukasz Zalewski, journalist of the Law section, Business Insider Polska
