Poland plans to abolish tax relief on the internet

Poland’s Ministry of Finance plans to abolish the tax relief on internet usage expenses starting from 2027. It is currently used by hundreds of thousands of taxpayers every year. At the same time, the ministry proposes to eliminate the relief for companies that spend money on expanding sales markets.

The relevant changes are contained in the government draft law UD461, submitted to the list of legislative works of the Council of Ministers. The Polish Ministry of Finance explains the review of reliefs by the need to adapt the tax system to current socio-economic conditions.

Currently, a taxpayer in Poland can deduct actually incurred internet usage expenses, but not more than 760 zlotys per tax year. This can be used for two consecutive years, if the person has not previously applied this deduction.

According to the Ministry of Finance, in the declarations for 2024, about 465 thousand taxpayers used the relief. The total amount of their deducted expenses was 298 million zlotys.

The relief was introduced in 2005, when internet access was much less widespread and the state tried to stimulate connecting households to the network. The Ministry of Finance believes that this goal has lost its relevance: in 2025, 96.2% of Polish households had internet access. The further existence of the deduction, in the ministry’s opinion, no longer contributes to digitalization, but reduces budget revenues.

Protection of already acquired rights is provided. If a taxpayer uses the relief for the first time in a tax year preceding the entry into force of the new law, they will be able to apply the deduction for the next year as well.

Other changes will apply to business. The Ministry of Finance proposes to abolish the so-called expansion relief. It allows entrepreneurs to additionally deduct expenses related to expanding sales of their own products, including for advertising, participation in exhibitions, preparation of websites and marketing materials. The maximum amount of additional deduction is 1 million zlotys per year.

In 2024, 300 PIT payers used this relief, deducing 43.1 million zlotys, and 315 corporate tax payers CIT with deductions of 136.1 million zlotys. The Ministry of Finance considers the mechanism not sufficiently effective: the state actually subsidizes part of the expenses that companies could carry out even without the tax incentive.

At the same time, the government not only cuts reliefs. The project provides for extension for another ten tax years of the relief for robotization of enterprises, as well as increasing the tax deduction for blood donors.

So far, it is about a draft law. The Polish government plans to consider it in the third or fourth quarter of 2026, after which the document must pass the parliamentary procedure.

Based on materials: Government of Poland, Business Insider Polska, podatki.gov.pl