The rules for taxing salaries and the possibility of applying 50% of income tax deductible costs for creative activities raise doubts among both employers and employees. Our law firm advises on the interpretation of tax regulations and copyright law, developing legally compliant remuneration models that minimize tax risk and increase the efficiency of settlements.
Our law firm provides comprehensive advisory services on the taxation of employee remuneration, including in particular in the context of the possibility of applying increased tax-deductible costs. We prepare documentation including employment contracts and remuneration regulations which provide for the payment of fees for the transfer of copyright to works created within the scope of the employment relationship.
We support companies in the IT, architecture, engineering, graphic design, and R&D industries in developing remuneration models based on creative activity, in accordance with the provisions of the PIT Act and the Copyright Act. We help prepare records of creative work and procedures for documenting the scope of activities covered by copyright protection. We also represent clients in proceedings for individual interpretations before the Director of National Tax Information.
For years, we have been advising clients on the implementation of effective remuneration systems and the interpretation of tax regulations in the context of creative activities. We have carried out projects for both large employers with hundreds of creative employees and smaller entrepreneurs in the B2B model. Our solutions have been implemented in the software, visual communication, architecture, engineering, and R&D industries, among others.
Thanks to our knowledge of both the Personal Income Tax Act and the Act of February 4, 1994, on copyright and related rights, we are able to advise in a way that reduces the risk of disputes with tax authorities and ensures compliance with applicable formal requirements. Our recommendations also take into account issues related to tax audits and documentation requirements in the event of an audit.
KWKR’s advice on the tax treatment of remuneration allows you to effectively reduce labor costs while creating transparent, legally compliant incentive systems. For employers, this means lower financial burdens, and for employees, higher net remuneration for the same gross amount.
The law firm provides support both in implementing solutions enabling the application of 50% of tax-deductible costs and in formally securing this model under the Personal Income Tax Act. If necessary, we prepare applications for individual interpretations, which significantly reduces the risk of disputes with tax authorities and enables long-term application of preferential settlement rules.
Pursuant to Article 22(9)(3) of the Personal Income Tax Act, it is possible to apply 50% of tax-deductible costs in the case of creative activities, provided that the conditions specified in Article 1 of the Copyright and Related Rights Act are also met. In order to take advantage of this preference, it is necessary to properly document the creative nature of the work and transfer the property copyrights.
Not every activity of an employee can be considered creative activity – it is necessary to meet the requirements of both tax law and copyright regulations. In practice, this means keeping records, providing a precise description of the results of the work, and implementing appropriate regulations and contractual provisions. Our law firm provides comprehensive advice in this area, helping clients to implement a model that is safe, effective, and tailored to the specific nature of their business.
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