Increasing competition in the labor market forces the employers to race for the best employees – to aiming to retain key talents and attract new ones. Alongside a positive working atmosphere and an extensive employee benefits system, an attractive remuneration scheme is a crucial factor for employees when deciding where to work.
Therefore, employers face the challenge of how to design effective remuneration systems without onloading the company’s budget.
Many employees, especially those making creative work, are entitled to benefit from 50% tax deductible costs. A careful analysis and implementation of an appropriate model for applying this tax preference may provide employees with higher net salary of even several thousand zlotys per year without additional costs for the employer.
The Personal Tax and Employer Advisory team at MDDP has extensive experience in identifying employees entitled to 50% tax-deductible costs and in implementation this scheme in practice.
How can we help?
- We will verify whether your employees may benefit from the preferential tax regime with 50% tax deductible costs, taking into account the nature of your business, the scope of your employees’ duties and the results of their work.
- We will determine the terms and conditions for applying 50% tax deductible costs in your company.
- We will assist you in proper implementation of 50% tax deductible costs, including drawing up appropriate documentation.
Example
Comparison of the effects of implementing the 50% tax deductible costs system for selected wage levels*.
| Gross monthly salary | Average net salary without 50% tax deductible costs | Average net salary with 50% tax deductio applied | Employee benefit (per month / per year) |
| 8 000 PLN | 5 784 PLN | 6 115 PLN | + 331 PLN/ + 3 972 PLN |
| 10 000 PLN | 7 147 PLN | 7 561 PLN | + 414 PLN / + 4 968 PLN |
| 15 000 PLN | 10 030 PLN | 11 195 PLN | + 1 165 PLN / + 13 980 PLN |
| 20 000 PLN | 12 907 PLN | 15 191 PLN | + 2 284 PLN / + 27 408 PLN |
| 30 000 PLN | 18 663 PLN | 21 863 PLN | + 3 200 PLN / + 38 400 PLN |
* Assuming the application of 50% tax deductible costs to 80% of gross salary.
Feel free to contact us
Anna Misiak
Partner | Tax adviser E: anna.misiak@mddp.pl T: (+48) (22) 376 52 86
Agnieszka Telakowska-Harasiewicz
Senior Manager | Tax adviser E: agnieszka.telakowska-harasiewicz@mddp.pl T: (+48) 503 971 849
Rafał Sidorowicz
Senior Manager | Tax adviser E: rafal.sidorowicz@mddp.pl T: (+48) 506 788 582