Company kindergarten in company costs

From January 1, 2016, entrepreneurs have been able to count as tax costs expenses incurred on the company's kindergarten, as well as on nurseries and children's clubs. The costs may include expenses incurred for their construction and part of the subsidy for parents for arranging childcare.

Corporate kindergarten - when can it be an entrepreneur's cost?

According to Art. 22 sec. 1p of the Personal Income Tax Act, tax deductible costs include expenses incurred by the employer, provided that they were not financed from the Company Social Benefits Fund:

• for the creation of a company nursery, company children's club or company kindergarten,
• for the operation of the above facilities, up to a monthly amount not exceeding for each employee's child:
• attending a nursery or children's club - PLN 400,
• attending kindergarten - PLN 200.

However, by the employee's child, pursuant to Art. 27f paragraph. 1 of the PIT Act, it is understood as a minor child in relation to whom, in the tax year, the employee:

• exercised parental authority,
• acted as a legal guardian if the child lived with him,
• cared for by performing the function of a foster family on the basis of a court decision or an agreement concluded with the starost.

What expenses on the company kindergarten can be included in the tax costs?

The costs related to the company's kindergarten include the following expenses:

• costs of acquiring fixed assets and intangible assets, or
• costs of own production of fixed assets, reconstruction, expansion, reconstruction, adaptation, modernization, renovation of fixed assets or
• costs of acquiring other assets.

In the case of expenses incurred after obtaining an entry in the relevant register in terms of meeting the conditions required to establish a nursery, children's club or kindergarten, tax costs are those relating to fixed assets, as well as intangible assets and other assets.

On the other hand, the costs of running a company kindergarten, nursery or children's club include the purchase by the employer of a service that consists in providing care for the employee's child in one of the above-mentioned facilities. Therefore, the entrepreneur may include in the tax costs not only the expenses related to the construction of the company's kindergarten, nursery or children's club, but also those related to its running.

Co-financing a kindergarten for employees' children

The entrepreneur may also include co-financing of expenses for the employee in the tax costs, up to the amount not exceeding the amount of expenses incurred and documented by him related to:

• taking the employee's child under the care of a day caregiver or attending a nursery or children's club, but not more than PLN 400 per month for each child,
• attending the employee's child in kindergarten, but not more than PLN 200 per month for each child.

In connection with the above, parents have the opportunity to obtain funding for the stay of their children in other institutions. However, in order for this co-financing to be the cost of the entrepreneur, it cannot be financed from the funds of the Company Social Benefits Fund.

Company kindergarten and employee income

According to Art. 21 sec. 1 point 67b of the Personal Income Tax Act, income tax is free of benefits that have not been financed from the Social Fund, and have been received from the employer due to:

• taking the employee's child under the care of a day caregiver or attending a nursery or children's club, up to PLN 400 per month,
• attendance of the employee's child to kindergarten, up to the amount not exceeding PLN 200 per month

- for every child.

To sum up, at present, an entrepreneur can include as tax costs expenses incurred on the company's kindergarten, children's club and nursery. It is a great convenience for an entrepreneur, and above all for working parents.