The tax office confirms – the entrepreneur who supported the fight against the pandemic will benefit from this when paying tax. This is the result of the interpretation that has just been issued by the tax office.
The government in the anti-crisis shield encouraged such action through tax breaks. It allowed for all donations (in cash or in kind) to be deducted from the income. Depending on the date of their transfer, up to 200% of their value could be deducted.
How it’s working? – Suppose an entrepreneur who pays 19 percent. In December 2020, linear PIT provided blankets for residents of the nursing home. He bought them for 1,000 PLN. He included the expense as costs, thanks to which he reduced his tax by 190 PLN. A 200 percent donation value, i.e. 2,000 PLN, will be deducted from the income in the annual tax return. This will lower his PIT by 380 PLN. The total tax benefit will therefore amount to 570 PLN – explains Wojciech Jasiński, tax consultant at ATA Finance.
It is easy to calculate that such a donation will ultimately cost him not 1000 PLN, which he paid for the donated items, but only 430 PLN. The rest will be regained thanks to the tax reduction.