JDG: progressive PIT or flat tax
Tax-deductible expenses may reduce PIT taxable income. The entrepreneur's private spending does not become a business cost merely because they run a JDG.
A guide for businesses in Poland
What can your business deduct in Poland?
An expense may reduce taxable income if the correct taxpayer incurs it, it supports business revenue, it is documented and no statutory exclusion applies. A business invoice alone is not enough. Assess VAT separately.
Legal rules checked: 13 November 2026. Prepared by Norman.
Start with your business and tax system
This guide covers ordinary expenses for a JDG taxed under progressive PIT or the flat tax (podatek liniowy), and a company paying ordinary CIT. It does not determine individual cases or specific tax reliefs.
Sp. z o.o.: ordinary CIT
The company assesses the expense as a separate taxpayer. A shareholder's spending, a dividend or a withdrawal from the company is not automatically a tax-deductible expense.
JDG: ryczałt
Ordinary business expenses do not reduce revenue subject to this revenue-based tax. You still need records, and input VAT deductibility is assessed separately.
Company: Estonian CIT
Do not use the simple model of an expense reducing current CIT. This system needs a separate analysis, including hidden profits and non-business expenditure.
Find your expense
Each category is a starting point. Purpose, evidence, actual use and specific statutory rules determine the treatment.
Categories shown: 13 / 13
Office and coworking
- When it may qualify
- Rent, coworking fees, utilities and cleaning may be deductible when they relate to premises used for business.
- What to check
- A refundable deposit is different from rent. Repairs, improvements and equipment purchases may need different accounting treatment.
- Records to keep
- Lease or coworking agreement, invoices, utility statements and evidence of business use.
Practical tip: Separate the refundable deposit from recurring charges when describing the bank transfer.
Laptop, phone and equipment
- When it may qualify
- Equipment used in the business may be deducted directly or through depreciation.
- What to check
- For an item meeting the fixed-asset conditions, an initial value up to PLN 10,000 allows a direct expense deduction. Above that threshold, check depreciation and specific reliefs. The threshold does not always use the net invoice price.
- Records to keep
- Invoice identifying the correct buyer, initial-value calculation, date placed in service and asset records where required.
Practical tip: Delivery and installation may form part of initial value. VAT you cannot deduct may also increase it.
Phone plans and internet
- When it may qualify
- Calls, mobile data and internet charges may be deductible to the extent they relate to business use.
- What to check
- Separate private use. There is no single automatic deductible percentage for every phone or home internet connection.
- Records to keep
- Invoices, contract, a description of use and a reasoned split between business and private costs.
Practical tip: A separate business number or plan helps show the purpose. Calling a contract a business plan does not decide its tax treatment.
Software, SaaS and hosting
- When it may qualify
- Work subscriptions, domains, hosting and tools used by your team may be business expenses.
- What to check
- An acquired licence may require amortisation. Services from a foreign supplier may require Polish import-of-services VAT accounting, even for a VAT-exempt business.
- Records to keep
- Invoice, licence or subscription terms, service period and supplier details, including its country.
Practical tip: Enter the business details and check VAT treatment before paying. An annual subscription may need to be allocated across periods.
Accounting, legal and advisory services
- When it may qualify
- Bookkeeping, legal advice and consulting connected to the business may be deductible running costs.
- What to check
- A shareholder's private legal matter does not become a company expense because the company pays. The service must concern the correct taxpayer.
- Records to keep
- Contract or order, invoice and evidence of the work, such as an opinion, report or case documents.
Practical tip: If the invoice simply says “consulting”, record which business problem was addressed and for which company.
Advertising and your website
- When it may qualify
- Advertising campaigns, promotional materials and maintaining a business website may serve the generation of revenue.
- What to check
- Advertising is different from representation. Purpose and substance matter; adding a logo does not establish deductibility.
- Records to keep
- Invoice, brief, campaign scope, examples of materials and evidence that the service was delivered.
Practical tip: Save the campaign materials and delivery report before they disappear from the supplier's dashboard.
Training and professional reading
- When it may qualify
- A course, conference or publication may be deductible where it has a specific connection to the business and its revenue.
- What to check
- General self-improvement or a private hobby is not enough. Assess the nature of the education and its relationship to the work performed.
- Records to keep
- Invoice, programme, attendance confirmation and a description of how the knowledge supports the business.
Practical tip: Before buying, write one sentence identifying the service or task where you will use the knowledge.
Banking, payments and business insurance
- When it may qualify
- Business bank charges, payment processing fees and insurance against business risks may be deductible.
- What to check
- Repaying loan principal is not an expense in the same way as a fee. Interest, insurance and financing have additional conditions and limits.
- Records to keep
- Bank or fee statement, agreement, insurance policy and coverage period. Use records appropriate to the transaction.
Practical tip: Do not count a processing fee twice when it appears in both the payment provider's settlement and the bank statement.
Employees and subcontractors
- When it may qualify
- Remuneration, employer-funded social contributions and subcontracted services may be business expenses.
- What to check
- The tax recognition date for pay and contributions depends, among other things, on payment deadlines. Work by a shareholder or board member needs an appropriate legal basis.
- Records to keep
- Contracts, payroll records or invoices, ZUS documents, payment confirmations and evidence of the work.
Practical tip: Reconcile gross pay, employer contributions and the net transfer separately. They are not three independent expenses for the same salary.
Business travel and accommodation
- When it may qualify
- Transport, accommodation and business travel settlements may be deductible, subject to the rules applying to the traveller.
- What to check
- An employee, a board member without an employment contract and a JDG owner do not automatically follow identical rules. Input VAT on accommodation and restaurant services is generally excluded, with statutory exceptions.
- Records to keep
- Business purpose and dates, travel settlement, tickets, invoices and records of meals and advances.
Practical tip: Record who you met and why. Separate any private extension of the trip from the business portion.
Cars, fuel and parking
- When it may qualify
- Costs of a car used for business may be deductible, subject to specific limits and conditions.
- What to check
- Do not apply one percentage to purchases, leasing, fuel and VAT. Ownership, use, vehicle type, emissions and the applicable transition dates matter.
- Records to keep
- Purchase or lease agreement, invoices, vehicle details and usage records where required.
Practical tip: Agree the vehicle's treatment with your accountant before the first claim. Do not copy a deduction percentage from office equipment.
Client gifts and business meetings
- When it may qualify
- Promotional spending and business meetings may require a separate assessment of purpose, recipient and substance.
- What to check
- Representation expenses are excluded from PIT/CIT deductions. VAT rules on free transfers and low-value gifts are not income-tax expense limits.
- Records to keep
- Invoice, purpose, details of the gift or meeting, recipients and transfer records where required.
Practical tip: Do not automatically classify every business meal as representation or every branded gift as advertising. Assess the circumstances.
Working from home and mixed use
- When it may qualify
- Housing costs genuinely connected to business may require a supported allocation between business and private use.
- What to check
- A company cannot treat a shareholder's home as though it were the owner's JDG. Establish the right to use the premises and attribute the expense correctly. Property depreciation has separate restrictions.
- Records to keep
- Legal basis for use, bills, a description of the space and its use, and support for the allocation.
Practical tip: The allocation must reflect reality. Registering a business at an address does not justify deducting the entire home.
An expense deduction and input VAT are different
Example: a company paying ordinary CIT at 19% buys a business service for PLN 1,000 net plus PLN 230 VAT. The whole service qualifies as an expense in the period and supports VAT-taxable sales. The company has full input VAT deduction rights and taxable income against which to deduct the expense.
- Payable to the supplier
- PLN 1,230
- Input VAT deduction
- PLN 230
- Lower CIT: 1,000 × 19%
- PLN 190
The expense does not reduce income tax by the full PLN 1,000 or produce an immediate cash refund. A different rate, a tax loss, ryczałt, restricted VAT rights or depreciation will change the result and timing. VAT exemption does not itself rule out a PIT/CIT expense; non-deductible VAT may form part of it where the conditions are met.
What should you not automatically deduct?
Private purchases
Household shopping, a private holiday or an ordinary business suit do not become deductible by adding a tax ID to the invoice. Documented protective clothing or workwear needs a different assessment.
Fines and tax late-payment interest
Fines and penalties imposed in criminal, petty-offence and administrative proceedings, as well as late-payment interest on tax arrears, are subject to exclusions. Contractual penalties need a separate check, not one rule for every case.
Representation and shareholders' private costs
Representation is statutorily excluded. A shareholder's personal spending is not the company's revenue-generating expense; document real services, agreements and business purpose.
Before you hand an expense to your accountant
- Check the buyer: the correct JDG or company, its name and NIP. A business bank transfer does not replace evidence of the expense.
- Keep the invoice or other appropriate record, agreement and evidence of delivery. A receipt without buyer details is not always sufficient.
- Add the business purpose, service period and beneficiary. Support any split between business and private use.
- Determine the expense amount, deductible VAT and recognition date separately. A fixed-asset purchase may require depreciation.
- Check payment-method, VAT whitelist and split-payment requirements where applicable. Identify refunds, corrections and advances to avoid double counting.
Business expense questions
Is every business invoice tax-deductible?
No. The expense must relate to generating, preserving or securing revenue, be incurred by the correct taxpayer and have appropriate evidence. Statutory exclusions still apply.
Can a business on ryczałt deduct expenses?
Ordinary business expenses do not reduce revenue taxed under ryczałt od przychodów ewidencjonowanych. This does not rule out an input VAT deduction when its separate conditions are met, or other statutory deductions.
Is the deductible expense net or gross?
With full input VAT deduction rights, the expense is usually the net amount. Non-deductible VAT may form part of the expense or initial asset value where the law allows. Partial VAT deduction requires a split.
Can a laptop up to PLN 10,000 be deducted immediately?
If it meets the fixed-asset conditions and its initial value does not exceed PLN 10,000, PIT/CIT rules allow a direct expense deduction in the month it is placed in service. Initial value includes the relevant acquisition costs and VAT treatment; it is not always the net invoice price.
Can a partly private purchase qualify?
Do not automatically deduct the whole amount. Establish actual business use, support the allocation and check the rules for that expense. VAT, vehicles and benefits to shareholders may require a separate analysis.
Explore the detailed rules
Depreciation in Poland 2026: PLN 10,000, one-off write-offs, cars
When a purchase can be expensed at once in Poland, when it must be depreciated, and the limits for 2026 and 2027: PLN 10,000, PLN 100,000, de minimis PLN 213,000 and the car caps.
Read the guideA company mobile phone in Poland: purchase, bills and VAT
Buying a phone through a Polish sp. z o.o.? Check purchase costs, monthly bills, VAT, the PLN 10,000 threshold and records needed for private use.
Read the guideEmployee business travel in Poland: per diem and expenses
Settle an employee’s domestic business trip in Poland: the PLN 45 per diem, meal deductions, hotel costs, records and a worked example with an advance.
Read the guideClient gifts in Poland: VAT limits and corporate tax
Buying gifts for Polish business partners? Check the PLN 20 and PLN 100 VAT limits, recipient records, corporate tax treatment and documents to prepare.
Read the guideSources and scope
Primary legislation and official guidance, in Polish. If the treatment is unclear, review the particular expense with your accountant or tax adviser.
Organise your business bookkeeping
Explore Norman for Polish sole proprietors and limited companies. Start with the right business details, documents and accounting rules.