A new tax deduction for businesses employing soldiers has been introduced in Poland, allowing significant income reductions based on the length of the soldier's service.
In Poland, the recent tax declarations for the previous year feature a significant change, introducing a novel deduction for businesses that employ members of the Territorial Defense Forces and Active Reserve. This deduction allows companies to reduce their annual income, consequently lowering their tax liability. To claim this benefit, businesses are required to report it in their tax returns and fill out an additional attachment.
The amount of the deduction is contingent on the duration of the soldier's service. For soldiers who have served continuously for at least a year, a deduction of 12,000 PLN is available. This amount increases with the length of service: 15,000 PLN for two years, 18,000 PLN for three years, 21,000 PLN for four years, and 24,000 PLN for five years of service. The Ministry of Finance emphasizes that these deductions are applicable to each soldier employed by the company, thus encouraging the recruitment of military personnel within civilian businesses.
This initiative not only aims to lower the tax burden for companies but also supports the integration of military personnel into the workforce, contributing to their financial stability and promoting the spirit of national defense. As Poland continues to support its military and enhance civilian-military relations, this tax incentive reflects the government's commitment to fostering employment opportunities for veterans and reservists.
