This is to let you know about the current approach of the tax authorities to the matter of calculating the 50% income deduction available for employees engaged in creative work ("50% Allowance").

The 50% Allowance may be used if a recordkeeping system is in place, the contracts of employment are properly formulated and there is evidence that copyrightable works have been created.

The tax authorities have recently been observed to take a stricter approach to these requirements. For example, they claim 50% Allowance is not available where the employer defines the creative element of the overall salary by reference to the working time devoted to creative activities or to a percentage working time ratio.

The authorities claim that the 50% Allowance is designed as relief not for the mere time during which creative activities are conducted but for their result, i.e. the development of a work of authorship and the transfer of the related copyrights to the employer.

This more radical treatment of recordkeeping requirements for the application of the 50% Allowance to employees may mean that businesses will have to revise their employment contracts and recordkeeping and evidence policies.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.


Doradztwo Podatkowe WTS&SAJA Sp. z o.o. 
Bałtyk Building, 13th floor
ul. Roosevelta 22
60-829 Poznań
tel. (+48) 61 643 45 50
fax. (+48) 61 643 45 51

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This Newsletter provides general information and is designed to keep you up-to-date with changes in tax law, tax rulings and interpretations, case law development and interesting commentaries.
Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions that follow from the contents hereof.

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