When we pay taxes, we expect them to be used to finance healthcare, education, infrastructure, social welfare, culture, and sports, among other things. Certainly, many people complain about the underfunding of hospitals, sports infrastructure, or the poor condition of national monuments.
While financing of such institutions is the domain of the state, it can also be co-financed by private entities – both individuals and legal entities. Special incentives are provided for entrepreneurs for sponsorship activities. Activities consistent with corporate social responsibility (CSR) are not only welcomed by contractors but also bring significant tax benefits.
Entrepreneurs who incurred business expenses during the tax year:
- sports,
- cultural,
- supporting higher education and science
— they can deduct 50% of the expenses incurred from the tax base.
This constitutes an additional benefit, as they are also entitled to deduct 100% of their expenses as tax-deductible costs. In total, they are entitled to deduct 150% of their expenses.
Eligible costs are expenses for:
- sports activities:
- financing of a non-profit sports club intended for:
- implementation of sports training programs,
- purchase of sports equipment,
- covering the costs of organizing sports competitions or participating in these competitions,
- covering the costs of using sports facilities for sports training purposes,
- financing sports scholarships and training staff salaries,
- sports scholarship,
- a sporting event that is not a mass sporting event;
- financing of a non-profit sports club intended for:
- cultural activities:
- financing of state and local government cultural institutions,
- financing cultural activities carried out by art universities and public art schools;
- higher education and science:
- financing scholarships for scientific or sports results for students and doctoral students,
- paying fees for postgraduate studies, specialist education or other forms of education for the employed employee,
- financing the remuneration of students undertaking internships and apprenticeships with the taxpayer as part of the study program,
- paying for dual studies
- payment of six months' salary to an employee employed through an academic careers office who is a graduate of a given university.
By engaging in sponsorship, we can not only show support for a local sports club or contribute to the development of cultural activities. The value we receive in return is increased brand recognition. We also benefit from reduced tax burdens. By engaging in employee training, we not only enhance competencies that can translate into business results, but also increase our attractiveness as an employer and benefit from tax preferences.
We'd like to remind you that the deadline for filing your annual CIT return is just a week away. Personal income tax payers have until the end of April to do so.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of March 24, 2025
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