22 September 2025

Operational leasing due to changes in limits for passenger cars

More and more taxpayers are choosing operational leasing for purchasing passenger cars due to their business profiles and the more favorable tax treatment it offers. This flexible form of financing allows them to deduct lease payments directly from their revenue-generating costs, eliminating the need for long-term depreciation. This is particularly appealing in light of rapidly changing business needs and rising vehicle prices, making it a strong alternative to traditional purchases. Furthermore, operational leasing provides greater flexibility in managing vehicle fleets.

Key Requirements for Operational Leasing

Certification of a contract as an operational lease for tax purposes requires meeting specific criteria outlined in Article 17b of the Corporate Income Tax Act.

1. The first requirement is that the contract must be for a fixed term lasting at least 40% of the standard depreciation period for the leased asset. For passenger cars, this means the contract should be a minimum of 24 months, since the standard depreciation period for this type of fixed asset is 5 years.
2. The second important requirement pertains to the total fees specified in the lease agreement, which, after deducting the applicable VAT, must be at least equal to the initial value of the fixed asset.
3. The third important requirement is that the financing party of the operational lease must not benefit from income tax exemptions, including those pursuant to the provisions on special economic zones or the subjective exemptions specified in Article 6 of the Corporate Income Tax Act.

For operational leasing of passenger cars, special attention should be paid to the cost limit of 150,000 PLN (225,000 PLN for electric vehicles). Lease payments are exempt from tax-deductible costs in excess of the proportion of 150,000 PLN or 225,000 PLN to the value of the car subject to the agreement.

Changes to the Car Limit

Starting in 2026, the limits for passenger cars will change and will be as follows:

• 225,000 PLN – for passenger cars with electric or hydrogen-powered engines,
• 150,000 PLN – for cars with internal combustion engines, if CO2 emissions are less than 50 g per kilometer,
• 100,000 PLN – for cars with internal combustion engines, if CO2 emissions are at least 50 g per kilometer.

The transitional provisions raise controversy over the unequal treatment of operating leases compared to passenger cars that constitute fixed assets within a company. While in the latter case, passenger cars purchased before 2026 can be accounted for under the old, more favorable limits until the end of their depreciation, this option is not provided for operating lease agreements concluded before 2026.

Is there a solution for leased cars?

You can purchase a passenger car through an operating lease and convert it into a fixed asset before 2026. In this case, the passenger car will be eligible for tax treatment under the previous, more favorable limits that are in effect until the end of 2025.

However, beware of potential pitfalls that could result in an unpleasant tax adjustment of the costs. Pursuant to Article 17b of the Corporate Income Tax Act, the key requirement for buying a car under an operating lease is that the buyout itself takes place after 24 months of the lease term (in accordance with the requirement that the lease term must be at least 40% of the standard depreciation period of the car as a fixed asset). Therefore, buying out an operating lease cannot take place earlier than two years into the lease term – this could lead to a disadvantage resulting in an adjustment of the costs in income tax.

In such a situation, it is necessary to analyze and consider whether a more tax-efficient leasing solution is possible before the end of 2026. This could translate into additional tax benefits.

If you are wondering whether there is a more favorable tax solution before the new limits for passenger cars come into force, please contact our experts.