Poland: Tax Office Conducts Checks on Creative Employees’ Remuneration
50% tax-deductible costs may only be applied to the part of the remuneration that constitutes the royalty payable to the employee for the transfer of copyright. Checks by the tax authorities mainly concern determining whether the basic part of the employees’ remuneration (non-author’s remuneration) has been set at a level that corresponds at least to the minimum salary for work as defined in the legislation. This is because the royalty is not taken into account in the calculation of the minimum salary for work.
If the basic salary was not set at least at the minimum salary, employees may be entitled to compensation. Therefore, we recommend verifying and possibly adjusting salaries to align them with the requirements.