Income taxes
Tax-deductible costs: what is it?
Costs incurred to earn revenue or to preserve its source
Tax-deductible costs are expenses incurred to earn revenue or to preserve its source, except those excluded by art. 23 of the PIT Act.
Key answers
- What it is
- Expenses connected with the business, incurred and documented, that reduce revenue when income is calculated (art. 22(1) of the PIT Act). Art. 23(1) excludes some expenses, among others representation costs, including catering and alcohol (item 23), and part of the costs of a passenger car (items 46 and 46a). With ryczalt costs do not reduce the tax, so they are not entered in the register.
- Who it affects
- PIT taxpayers taxed on the tax scale or with the flat tax. Employees have costs in fixed amounts (art. 22(2)), not from invoices.
- When
- A cost is deducted, as a rule, in the tax year in which it was incurred (art. 22(4)). Exceptions concern, among others, costs directly related to revenue and the cash method. In KPiR you enter expenses in columns 12-15, on the basis of the accounting document.
- Where
- Rules: art. 22 and 23 of the PIT Act. A passenger car also used privately: 75% of the expenses are a cost (25% excluded, item 46a). The taxpayer's private car (not a business asset) that is also used in the business: 20% of the expenses are a cost (item 46).
This is information, not legal advice. As of 2026-10. Deadlines and rules may change, so check them in the official source.
