As compensation for the various increases (for example the basis for the amount of health insurance contributions), the legislator has offered new reliefs that taxpayers are entitled to – depending on the fulfillment of certain criteria. This group includes pro-family relief, rehabilitation relief, innovation relief, or relief for the middle class, about which we wrote a separate article.
The sponsorship tax relief is a completely new form of financial support that is available to entrepreneurs when they engage in CSR (Corporate Social Responsibility) activities.
In general, CSR activities concern support in the fields of sport, culture, and local activities that fall within the scope defined by the ISO 2600 standard of the International Standardization Organization. An example of activities that will qualify the entrepreneur for the relief may be supporting local institutions, cooperation with local organizations, programs for children and youth, environmental activities, as well as investments (e.g. road building). Moreover, pro-ecological activities, social and employee campaigns, and volunteer work. More information on this subject can be found on the PARP website.
But one must remember that the Law introducing the sponsorship relief indicates only three fields of activity that will be taken into account during tax deductions:
The new form of financial support is available to a wide range of recipients without hidden exclusionary factors, in particular for:
According to the Act, the cost of CSR activities undertaken can be later deducted from the tax base in the total amount of 150% of the costs incurred, in the scheme below:
The deduction is made in the tax return for the tax year in which the costs were incurred. The taxpayer is obliged to submit information on the incurred CSR costs in the form of a listing.
The amount of the deduction cannot exceed the amount of income earned by the taxpayer in the given tax year (income other than income from capital gains).