Bigger Tax Credit For Creators

Government officials announced there will be amendments made in the regulation concerning taxation on creators. Today, they enjoy a tax credit of 50% of the revenue accrued in a given year, up to a certain threshold stipulated by legal provisions. Now, the government wants the threshold to be higher. Much higher. In fact, officials are planning to double the level of income on which the amount of tax credit depends. The new limit will be 171 056 PLN.

The regulation applies to artists and creators. Under these terms fall, as one may expect, musicians, painters, screenwriters or actors, but also other professions that are not automatically associated with artistry: translators, journalists, graphic designers, and scientists. In other words, the tax credit applies to all those creating original content.

The plans were announced by Mateusz Morawiecki, the Minister of Finance and Piotr Gliński, the Minister of Culture. New regulations are to come into effect in January 2018. As Minister Morawiecki highlighted, the move is possible due to positive results of fighting tax crime and “sealing” of the fiscal system and the VAT gap, i.e. the difference between the expected and actual fiscal revenue obtained through the tax on goods and services.

Some artists hoped the government would dispose of the threshold altogether. Even though there were projects introducing such radical change, this was not debatable for state officials. A bill removing the threshold for tax credits for creators was debated in Sejm, the lower body of the Polish parliament, but was not passed. It is, however, likely that next year the threshold will be raised even further. From the point of view of the budget, the change will cost 200 million PLN, but as Morawiecki and Gliński noted during their conference, the state of public finances is good and allows for such moves.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.