Cost within the meaning of the Personal Income Tax Act, Art. 22 of the Act



Reducing the amount of income tax is regulated by the Personal Income Tax Act, which says that income may be reduced by tax deductible costs.

Tax deductible costs include costs incurred in order to generate income or to maintain or secure a source of income. The legislator introduces a general definition of costs, but enumerates costs not classified as tax deductible costs (Article 23). As a rule, in order for an expense to be considered a tax deductible cost, two conditions must be met: the expense cannot be included in the catalog of non-tax deductible costs and the purpose of the expense is to achieve, maintain or secure the income. Thus, the expense does not have to be directly related to the cost (e.g. training cost, revenue source protection cost). In addition, the expenditure does not actually have to generate income, it is enough to meet the above purpose.

Tax deductible costs also include depreciation write-offs (in accordance with Art. 22 a - 22 o), development costs and costs related to the running of Employee Pension Programs. )

Who can benefit from tax deductible costs?

Tax deductible costs include not only entrepreneurs running a business, but also persons covered by an employment relationship, homework, cooperative employment relationship and a service relationship. In this case, the costs are determined on the basis of the number of employment relationships of the taxpayer and the workplace of the employee. The above dependencies are presented in the table:


Monthly value

Maximum annual value

Local worker

PLN 111.25

PLN 1,335 (one contract)


PLN 2,005 (more than one contract)

A commuting employee whose workplace is located outside the town where the workplace is located

PLN 139.06

PLN 1668.72 (one contract)


PLN 2,502.56 (more than one contract)

If the annual costs are lower than the expenses incurred by the employee for travel (by bus, rail, ferry or public transport) to the place of work - the costs may be increased to the actual value if the expenses are documented by means of personal season tickets. Objections may also arise from the determination of tax deductible costs on the basis of two employment relationships concluded in one workplace. In this case, the interpretation of the Ministry of Finance of March 24, 1995 (PO 5 / 9-0261 / 95) comes in handy, which states that if the contract is concluded as a separate employment relationship, it should be treated in the same way as concluded with various establishments.

Determining the date of deduction of tax deductible costs

As a rule, tax deductible costs are deductible only in the tax year in which they were incurred. On the other hand, for taxpayers who keep tax books and for taxpayers who keep tax books of revenues and expenditures, tax deductible costs directly related to revenues are deductible in the tax year in which the related revenues were obtained. The exemption does not apply to costs indirectly related to revenues that are deductible on the date they are incurred.


The day when the cost is incurred is determined based on the day the cost is booked. On the other hand, taxpayers who keep tax books of revenues and expenditures determine the date of incurring the cost on the basis of the date of issuing the invoice. In the case of abandoned investments, the costs are deductible at the time of sale of the investment or liquidation.