Poland proposes ending internet tax relief while extending robotization incentives

Elimination of the internet tax deduction

Poland's Ministry of Finance has prepared a draft bill to remove the personal income tax deduction for internet expenses. The tax preference was originally introduced in 2005 to combat digital exclusion and encourage widespread network access across Poland. Under modifications enacted in 2013, the relief was restricted to two consecutive tax years, capping deductions at 760 PLN per individual or 1,520 PLN for married couples filing jointly. Government data from the Central Statistical Office (GUS) indicates that 96.2% of Polish households currently maintain internet connectivity, leading the ministry to conclude that the social goal of the policy is fulfilled.

Rationale and transitional protections

The ministry stated that the internet deduction now reduces public revenues without promoting further digital adoption. In 2024 alone, 465,000 taxpayers claimed the relief, accounting for 297 million PLN in total deductions. Tax experts noted the fiscal scale of the benefit, which provided an average deduction of 640 PLN per claimant.

In 2024, more than 465,000 people took advantage of this deduction. The amount of deductions reached 297 million PLN, an average of 640 PLN per person.

The draft legislation includes transitional protections for taxpayers who claimed the deduction for the first time in the year immediately preceding the law's entry into force. These individuals will retain the right to complete their standard two-year deduction cycle under the acquired rights principle.

Changes to corporate tax reliefs

Alongside personal tax adjustments, the bill modifies two preferences for businesses established in 2022. The government plans to repeal the business expansion relief (ulga na ekspansję), which allowed companies to deduct costs related to foreign trade fairs, international advertising, and product certifications. According to government records, nearly five years of implementation revealed a deadweight loss effect, as public funds subsidized commercial marketing activities that companies would have conducted regardless of tax incentives.

Experiences from the nearly five-year period of operation of the expansion relief indicate that this preference did not ensure the effective achievement of the goals that justified its introduction. The functioning of the relief in question leads to the creation of the so-called deadweight effect, consisting in financing from public funds ventures that would have been carried out by entrepreneurs in the ordinary course of business anyway, regardless of the existence of the tax incentive.

Conversely, the draft extends the robotization relief (ulga na robotyzację) for an additional 10 years. The measure, which allows industrial enterprises to deduct 50% of the purchase costs of industrial robots from their taxable base, was scheduled to expire at the end of the 2026 tax year.

Support for blood donors and next legislative steps

The proposed package also expands tax deductions for honorary blood donors across standard personal income tax and flat-rate tax schedules. The government plans to raise the statutory deduction rates for donated blood and blood components, aiming to increase donor participation and enhance national healthcare supplies. The draft bill was entered into the government's legislative work list on 27 August 2026. The Council of Ministers plans to review the formal legislative package at the turn of the third and fourth quarters of 2026.