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In brief

Stay up to date with all the latest news and publications on employment law in Poland and the potential impact it may have.

Issue: The Ministry of Finance issued a general interpretation of 18 September 2020 on the application of 50% of tax-deductible costs (KUP) on the remuneration of employees who create copyrighted works. This allows for a reduction in the taxation of employees who create works under an employment relationship, and their compensation for assigning copyrights is clearly separated from other components of remuneration. In particular, according to this interpretation:

  • as a rule, the amount of the remuneration for assigning copyrights may be indicated as the actual amounts, as a percentage of the total remuneration, or can even be based on the time spent by the employee on creating the works – as long as it is linked to specific works,
  • the works may be documented in the form of a register of created works or a statement on the creation of a specific work,
  • 50% of tax-deductible costs (KUP) can be applied to programmers, provided that the employment contract states that the economic copyrights to the computer program are vested primarily in the employee, and only secondarily acquired by the employer.

Legal risks: Incorrect application of 50% of tax-deductible costs of employees may result in the obligation to return outstanding tax with interest as well as in personal liability under the Penal fiscal code.

Recommended actions: Analyze if the employer can apply 50% of tax-deductible costs to particular employees. Verify if the internal documentation and procedures comply with the new general interpretation.

Click here to access the Polish version: HR Alert Polska | Grudzień 2020


Michał is experienced in labor and employment matters. He advises on all aspects of individual and collective labour law, in particular on hiring staff, redundancies, compensation and benefits, employment policies, discrimination, employment litigation as well as trade unions. He has extensive experience in handling HR issues in M&A deals and reorganizations.