Sponsorship relief (for CSR – Corporate Social Responsibility) is a solution proposed as part of the tax reboot of the economy, which will benefit entities operating in the field of culture, sport, science and higher education. It will make supporting activities in these areas more attractive. Entrepreneurs, celebrities or great artists will be more interested in cooperation with, for example, cultural institutions, sports clubs or universities, which will allow these entities to obtain additional funds for their cultural, sports or scientific activities.

The sponsorship market in Poland is developing rapidly. In 2020, only sports sponsorship is – according to various estimates – up to PLN 1 billion spent by companies on supporting the activities of sports clubs or on scholarships for athletes. It is estimated that as a result of applying the tax relief in 2022, companies will save about PLN 100 million.

Sponsorship relief (CSR) is a tax incentive. Each sponsor who comes to Poland and invests, for example, PLN 1 million for a socially important goal, will be able to charge PLN 1.5 million in the costs. The relief on the same terms will also be open to every Polish entrepreneur. No lower and upper limits. In this way, companies will be more than ever interested in, for example, cooperation with cultural institutions, sports clubs or universities. This will allow the beneficiaries to obtain additional funds for their activities. It will be a strong impulse for the development of CSR for sponsors.

The deduction will apply to all entrepreneurs operating in Poland, i.e. both sole proprietorships and companies.

Thanks to the sponsorship relief, entrepreneurs will be able to additionally deduct 50% of the costs incurred for the indicated areas of activity from the income tax base (PIT and CIT). The taxpayer, in addition to including the costs incurred in 100% as tax deductible costs, will be entitled to additional income tax preferences by deducting 50% of the costs incurred from the tax base. In total, the entrepreneur will account for 150% of the cost incurred in the income tax.

• In the case of a discount for sports activities, the deduction will be made of costs incurred for financing a sports club (eg for the purchase of sports equipment), a sports scholarship or a sports event which is not a mass sports event.
• On the other hand, the relief for cultural activities enables the deduction of costs incurred for the creation, promotion and protection of culture. Costs incurred for the benefit of cultural institutions entered in the register will be deductible, as well as for the financing of cultural activities carried out by art academies and public art schools.
• However, in the case of tax relief for activities supporting higher education and science, the deduction will be, inter alia, costs incurred for student scholarships for academic performance, research scholarships for doctoral students, costs of fees related to the education of an employed employee on postgraduate studies and other forms of education, costs of remuneration of students during internships in workplaces. Certain costs, e.g. those related to the remuneration of students during internships in workplaces, will be deductible if they are carried out on the basis of an agreement concluded by the taxpayer with the university.

In the event of using the sponsorship discount, the deduction will be made of costs that have not been reimbursed to the taxpayer in any way. The tax credit will be deducted from your tax return for the tax year in which the costs were incurred.

Source: https://www.podatki.gov.pl/polski-lad/pakiet-dla-biznesu-polski-lad/repatriacja-kapitalu-polski-lad/ulga-na-csr-polski-lad/

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