Tax credits for entrepreneurs

Tax credits for entrepreneurs

If you are self-employed, you can reduce your taxes through various tax breaks. Which tax breaks you can take advantage of is dictated by the form of taxation you have chosen for your business. Read the article to the end to find out more about tax reliefs for entrepreneurs

Internet tax relief

It is available to entrepreneurs taxed under the tax scale (PIT-36) and as a lump sum on registered income (PIT-28).
The tax deduction is available only for two consecutive tax years. The Internet deduction allows for a deduction of up to PLN 760 in a given year.

Tax deductions for entrepreneurs – Child tax deduction

  • This tax deduction may only be taken advantage of by entrepreneurs taxed in accordance with the tax scale (PIT-36).

The tax deduction is available for each minor child as well as for an adult child in a situation when:

  • the child receives a nursing allowance or social pension (regardless of age)
  • the child is under 25 years of age and attends schools referred to in the provisions of the educational system or higher education law, if the child did not earn income up to PLN 3089 in the tax year.

The amount of the deduction depends on the number of children and, in the case of a single child, whether the entrepreneur is a single parent. The amount of the deduction is calculated from the income tax less the contribution for health insurance.

Thermomodernization relief

  • It may be taken by entrepreneurs taxed under the tax scale (PIT-36), the flat-rate tax (PIT-37) or the lump-sum tax on registered income (PIT-28).

The relief is available to taxpayers who are owners or co-owners of a single-family residential building. They are entitled to deduct costs related to construction materials and services aimed at thermomodernization of the residential building. In order to take advantage of this allowance you must complete the thermomodernization of the building within 3 years from the end of the year in which you incurred the first expenses related to thermomodernization. If you do not manage to complete the thermomodernization within 3 years, you have to add the settled thermomodernization relief to your income for the tax year in which the 3-year period expired.

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