Tax-deductible costs (KUP) are expenses that: 1. Are related to your business activity 2. Are not on the list of non-qualifying expenses (Art. 23 of the PIT Act) 3. Are documented (invoice, receipt, internal voucher) The rule: if an expense helps you earn income — it's a cost. If it doesn't — it isn't.

1. Office and premises rent Office / coworking rent Workshop, warehouse, studio rent Utilities: electricity, water, gas, internet, phone If you work from home — proportionally (office floor area vs. entire home) 2. Equipment and tools Computer, laptop, phone Office furniture, chairs, desks Machinery, tools, devices Software, licenses, subscriptions Value up to 10,000 zł net — you deduct it in full in the month of purchase. Value above 10,000 zł net — you depreciate it (spread over years). 3. Car In a sole proprietorship (JDG) you can deduct car costs in two ways: Option A: Company car (full costs) Registered as a business asset in CEIDG Full costs: fuel, servicing, insurance, leasing VAT: 50% on fuel (depreciation limit 150,000 zł for combustion-engine cars, 225,000 zł for electric) PIT: 75% of costs recognized (if used privately) or 100% (if 100% business) Option B: Private car (mileage allowance) Rate per km: Passenger car: 1.15 zł/km (2026) Motorcycle: 0.69 zł/km Limit: 30,000 zł per year Requires mileage logs (date, route, purpose, km) 4. Fuel On tax scale / flat tax — you deduct fuel as a cost (if company car) On VAT — 50% VAT on fuel (limit 15,000 zł) On lump-sum tax (ryczałt) — you cannot deduct 5. Training and education Professional courses (skill development) Conferences, webinars Books, industry subscriptions Language courses (if related to your business) 6. Marketing and advertising Online advertising (Google Ads, Facebook Ads) Website (hosting, domain, design) Marketing materials (flyers, business cards) Social media (tools, agencies) 7. Outsourced services Accounting services (from 49 zł + VAT/month) Legal and advisory services Outsourcing (IT, marketing, HR) Subcontractors 8. Insurance Business liability insurance (OC) Property insurance (equipment, premises) Not: life insurance, private health insurance 9. Business travel Foreign and domestic per diems Accommodation (up to the limit) Airline, train, bus tickets Taxi, Uber (related to business) 10. Social insurance (ZUS) and contributions Social insurance (ZUS) contributions (mandatory and voluntary) — you always deduct Health insurance contribution — only the 7.75% portion (tax scale / flat tax), not deductible from revenue Employees' social insurance contributions

Tax-Deductible Costs (KUP) for Sole Proprietorship (JDG) in Poland 2026

Q: What can you NOT deduct?

Personal expenses (Art. 23 of the PIT Act) Clothing (unless protective/workwear with company logo) Food (restaurants, meals — unless on a business trip) Alcohol, cigarettes Gifts (but: promotional items up to 100 zł are deductible) Fines (traffic tickets, contractual penalties) Life insurance Loan repayments (loans, borrowings — principal repayment is not a cost) Representation vs. marketing Representation (goal: to impress) — you CANNOT deduct Marketing / advertising (goal: to acquire clients) — you CAN deduct The line is thin. A dinner with a business partner = representation (not deductible). Flyers with your company logo = marketing (deductible).

Tax-deductible costs (KUP) for a sole proprietorship (JDG) in Poland in 2026. What to deduct, limits, documentation. Full guide for tax scale and flat tax.

Tax-deductible costs (KUP) are expenses you can deduct from your revenue, lowering your taxable base. But only on the tax scale or flat tax — not on the lump-sum tax (ryczałt).

In this guide, I explain what you can deduct in a sole proprietorship (JDG) in Poland in 2026.

What are KUP?

Tax-deductible costs (KUP) are expenses that:

Are related to your business activity
Are not on the list of non-qualifying expenses (Art. 23 of the PIT Act)
Are documented (invoice, receipt, internal voucher)

The rule: if an expense helps you earn income — it's a cost. If it doesn't — it isn't.

What can you deduct?

1. Office and premises rent

Office / coworking rent
Workshop, warehouse, studio rent
Utilities: electricity, water, gas, internet, phone
If you work from home — proportionally (office floor area vs. entire home)

2. Equipment and tools

Computer, laptop, phone
Office furniture, chairs, desks
Machinery, tools, devices
Software, licenses, subscriptions

Value up to 10,000 zł net — you deduct it in full in the month of purchase. Value above 10,000 zł net — you depreciate it (spread over years).

3. Car

In a sole proprietorship (JDG) you can deduct car costs in two ways:

Option A: Company car (full costs)

Registered as a business asset in CEIDG
Full costs: fuel, servicing, insurance, leasing
VAT: 50% on fuel (depreciation limit 150,000 zł for combustion-engine cars, 225,000 zł for electric)
PIT: 75% of costs recognized (if used privately) or 100% (if 100% business)

Option B: Private car (mileage allowance)

Rate per km:
- Passenger car: 1.15 zł/km (2026)
- Motorcycle: 0.69 zł/km
Limit: 30,000 zł per year
Requires mileage logs (date, route, purpose, km)

4. Fuel

On tax scale / flat tax — you deduct fuel as a cost (if company car)
On VAT — 50% VAT on fuel (limit 15,000 zł)
On lump-sum tax (ryczałt) — you cannot deduct

5. Training and education

Professional courses (skill development)
Conferences, webinars
Books, industry subscriptions
Language courses (if related to your business)

6. Marketing and advertising

Online advertising (Google Ads, Facebook Ads)
Website (hosting, domain, design)
Marketing materials (flyers, business cards)
Social media (tools, agencies)

7. Outsourced services

Accounting services (from 49 zł + VAT/month)
Legal and advisory services
Outsourcing (IT, marketing, HR)
Subcontractors

8. Insurance

Business liability insurance (OC)
Property insurance (equipment, premises)
Not: life insurance, private health insurance

9. Business travel

Foreign and domestic per diems
Accommodation (up to the limit)
Airline, train, bus tickets
Taxi, Uber (related to business)

10. Social insurance (ZUS) and contributions

Social insurance (ZUS) contributions (mandatory and voluntary) — you always deduct
Health insurance contribution — only the 7.75% portion (tax scale / flat tax), not deductible from revenue
Employees' social insurance contributions

What can you NOT deduct?

Personal expenses (Art. 23 of the PIT Act)

Clothing (unless protective/workwear with company logo)
Food (restaurants, meals — unless on a business trip)
Alcohol, cigarettes
Gifts (but: promotional items up to 100 zł are deductible)
Fines (traffic tickets, contractual penalties)
Life insurance
Loan repayments (loans, borrowings — principal repayment is not a cost)

Representation vs. marketing

Representation (goal: to impress) — you CANNOT deduct
Marketing / advertising (goal: to acquire clients) — you CAN deduct

The line is thin. A dinner with a business partner = representation (not deductible). Flyers with your company logo = marketing (deductible).

How to document costs?

Invoice

From an active VAT taxpayer
Must include: seller's and buyer's NIP (tax ID), date, description, amount, VAT
The best proof of a cost

Receipt

From an individual who is not a VAT taxpayer
Amount up to 450 zł (2024)

Internal voucher

For expenses without an invoice/receipt (e.g., employee per diem)
Your own internal company document

Bank transfer confirmations

Proof of payment (confirms the expense was incurred)

KUP limits — 2026

Fuel (car)

VAT deduction limit: 15,000 zł per year (50% VAT on fuel)

Car (value)

Depreciation limit: 150,000 zł (combustion-engine car), 225,000 zł (electric)

Foreign per diems

Depend on the country (e.g., Germany: 49 €/day, France: 50 €/day)
Accommodation: up to the country's hotel limit

Training

No monetary limit (but must be related to your business)
Professional training = yes, hobby = no

FAQ

Can you deduct costs on the lump-sum tax (ryczałt)?

No. On ryczałt you do not deduct costs — only revenue × rate = lump-sum tax. But you can deduct ZUS, IKZE, and tax reliefs from the ryczałt.

Can I deduct the purchase of a laptop?

Yes, if you use it for your business. Value up to 10,000 zł net — in full. Above that — depreciation.

Can I deduct my apartment rent?

Only if you have a separate office in it (floor area proportion). The entire apartment rent — no.

Is food on a business trip a cost?

Per diem yes (up to the country limit). But a private restaurant meal — no.

Can I deduct company clothing?

Yes, if it's protective workwear or branded with a logo. Private clothing — no.

Need help?

I handle sole proprietorship (JDG) accounting — KUP, tax scale / flat tax, costs, record-keeping. From 49 zł + VAT per month.

Write to [email protected] or visit oxyok.com/pl.

Note: You deduct KUP only on the tax scale / flat tax, not on the lump-sum tax (ryczałt). The expense must be related to your business and documented with an invoice or receipt. Consult an accountant before making decisions.