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Creative Work Tax Relief

This document refers to KUP50: a 50% tax deduction scheme in Poland that allows eligible individuals to deduct a percentage of their gross income as tax-deductible expenses.

Criteria​

  • work is externalized (source code produced)
  • work is original (objective new value)
  • work is individual (result of an individual's effort)

Applicable to​

  • Direct Activity: Computer program, source code, result code, algorithms, interfaces, scripts
  • Indirect Activity: graphics, animations, documents, tests, specs

Not applicable to:​

  • reports, opinions, ideas, proof-reading (editing), calculations
  • minor changes to source code (e.g., small bug fixes, comments, changes in parameters/formatting)

Example financial benefit:​

At 65% (time working in creative work), and an annual gross salary of 60K zl, the net annual salary would increase by ~3400 zl.

This is not applied on months when creative work was not performed.

Requirements:​

  • Job is eligible
  • Agreed to participate
  • Activities result in work whose copyright is passed to the employer
  • On the month, you reported the work, and it was approved.

Author's obligations:​

  • Work must belong to a project and contain: title, type, project name, the work (in case it's not source code), reporting period, description of the work.
    • In case of confidential work, a broad description of what makes it unique
  • Work must be reported in each reporting period (monthly)
  • Employee must print yearly reports for tax auditing