Tax optimisation is not tax avoidance — it is smart use of the law. We have compiled 10 legal and proven methods that can significantly reduce your income tax.
Many entrepreneurs pay more tax than they have to — not because it is fair, but because they are not aware of all the legal tools available. Tax optimisation is entirely legal and is one of the key services of a good accounting firm. Here are 10 methods worth considering before the end of the tax year.
R&D Relief: deduct 100% (or 200% for R&D centres) of costs incurred on research and development. This applies not only to start-ups — any company creating new products or processes can use it. IP Box: preferential taxation of income from qualifying intellectual property rights at 5% PIT/CIT instead of the standard 19%/32%. Especially popular among developers, software creators and designers. Start-Up Relief (first 6 months of JDG): no ZUS social contributions for the first half-year. Saving of approx. PLN 9,600 per year.
Choosing the right tax form: tax scale (12%/32%), flat rate (19%), lump-sum tax (2–17% depending on PKD code) or Estonian CIT (no tax until profit is distributed). The right choice can save tens of thousands of PLN annually. One-off depreciation: fixed assets up to PLN 10,000 can be expensed in full at once. Above that — consider one-off depreciation under de minimis aid (limit EUR 50,000 per year). Accelerated depreciation: for brand-new fixed assets you can use the declining-balance method or increased rates — shortening the expensing period from 5 years to 2–3.
Optimising business costs: home office, electronic equipment, training courses, professional literature, insurance — these are all legitimate business costs. The key is proper documentation. Company car: operating lease or acquisition into company assets gives full VAT deduction (with 100% business use) and depreciation. Car up to PLN 150,000 in value — full depreciation; above — a cap applies. Hiring a spouse or adult child: the salary is a business cost and reduces the tax base. Condition: the work must be real and the remuneration market-rate.
Estonian CIT means taxation only when profit is distributed from the company. As long as the profit remains in the company and is reinvested, you pay no tax. This is a revolution for companies that want to grow quickly. Conditions: limited liability company (sp. z o.o.) or joint-stock company, revenue up to PLN 100 million, min. 3 employees on employment contracts, no shares in other entities (broadly). Effective Estonian CIT rate after dividend distribution: approx. 20% (small taxpayer) or 25% (others), vs 19% standard CIT + 19% PIT on dividend = approx. 34% via the standard route.
Tax optimisation is year-round work — not just something to do before December. Schedule a consultation with Danexis and we will review your tax situation together. Often a few changes are enough to save several thousand PLN per year.