New limitations in applying the 50% rate of tax-deductible costs
The legislator has made a change in the form of narrowing of the group of entities that will be entitled to apply the increased tax-deductible costs on account of performance of creative work. The scope of the revenue catalogue, which will come into force as of 1 January 2018, is as follows:
- Creative work in the field of architecture, interior architecture, landscape architecture, city planning, belles-lettres, visual arts, music, photography, audio-visual works, computer programs, choreography, artistic violin-making, folklore arts and journalism;
- Revenues from research and development work as well as scientific and didactic work;
- Revenues from artistic work in the field of acting and stage performance, theatre and performance directing, dancing and circus arts, conducting, vocal arts, instrumental arts, costume design and scenography;
- In the field of audio-visual production of directors, screenwriters, photography and sound directors, editors and stuntmen;
- Revenues from publicity work.
- Moreover, the new provisions increase the annual limits related to the use of the 50% rate of TDC by 100%, i.e. to the amount of PLN 85,528. (Currently: PLN 42,762). Any type of creative work, which is not included in the catalogue, will not offer the possibility of recognising 50% of TDC from revenues obtained from the transfer of copyrights.
Changes in the field of the tax exempt amount
As of the beginning of the new year, the tax exempt amount will increase from PLN 6,600 to PLN 8,000. At the same time, the tax exempt amount will be still decreasing along with the increase of the revenues constituting the tax base, which exceed the amount of PLN 8,000 but do not exceed the amount of PLN 13,000. Persons earning over PLN 13 thousand but less than PLN 85,528 may use the exempt amount of PLN 3,091 (in practice, it means decrease of tax by 556.02 groszy). On the other hand, the exempt amount will be also decreasing for the taxpayers with revenues exceeding the amount of PLN 85,528 and in case of revenues exceeding the amount of PLN 127 thousand, it will amount to zero.
As of the beginning of the new year, the legislator introduces the provisions that exclude the revenues obtained from the motivational schemes from the source of the monetary capitals (19% tax rate). Consequently, such revenues will be included in revenues from employment relationship or from activity conducted personally. Revenues from motivational schemes will be taxed according to the tax scale (18% and 32%). Also the tax point of the revenues from sale of the stocks acquired within the motivational schemes has been regulated. The taxable revenue will occur at the moment of sale of these stocks.