Costs related to the adaptation of housing for the disabled person, as opposed to the purchase of equipment, equipment and technical tools, do not require the so-called individual nature. In the case of the renovation of an apartment where a disabled person lives, the most important thing is whether the expenses for the renovation have been incurred in order to facilitate the performance of life activities for the disabled person.
The National Tax Information Director received an application for an individual interpretation of tax law on personal income tax in the field of rehabilitation relief. The taxpayer who applied is a person with moderate disability with a symbol 05-R.
The woman indicated that she had to bear the expenses of adapting the apartment according to the needs of her disability. This would involve a massive renovation of the bathroom, which is in very good condition, but does not have improvements for the disabled.
The renovation would consist of replacing the bath tub with a shower cabin equipped with a handle, battery and floor drain, and the floor throughout the bathroom would be lined with anti-slip tiles.
According to the applicant, it would also be necessary to replace the toilet shell with a sub-mountain set as it would be possible to lower the shell height below the standard and the applicant is a low-growth person.
The washing machine would be in a different place than today, which would require the replacement of water and sewerage and electrical installations. For these reasons, walls throughout the bathroom would have to be lined with new tiles.
The taxpayer stressed that expenditure on adapting the bathroom to the needs of its disability would be financed entirely from its own resources.
According to the applicant, all of these expenses should be deducted as part of the rehabilitation allowance, including those incurred for labour.
The Director of KIS agreed, who noted that the expenses incurred in adapting and equipping housing and residential buildings in accordance with the needs of disability are considered to be expenses related to facilitating the performance of life activities.
Subject to the fact that the adaptation and equipment of a housing unit must facilitate the residence of a disabled person in that premises, given the type of disability.
The Interpreting Body also indicated that the applicant’s factual situation also fulfilled the conditions of Article 26(7b) Personal Income Tax Act (Journal of Laws of 2019, item 1387 i.e.
of 25 July 2019), establishing that the expenditure in question Under section 7a, are deducted from income if they have not been financed (financed) from the resources of the occupational rehabilitation fund for persons with disabilities, the occupational activity fund, the State Fund for the Rehabilitation of Persons with Disabilities or the National Health Fund, the occupational social benefit fund or have not been reimbursed to the taxpayer in any form.
The Director of KIS therefore considered that the costs mentioned by the applicant relating to the adaptation of the bathroom to the needs of its disability would be expenditure meeting the rehabilitation relief requirements. Therefore, the applicant will be able to deduct them from personal income tax.
However, it should be taken into account that, for each disabled person, expenditure on adaptation and housing may be different, as it should reflect the needs of the disability of the person benefiting from the rehabilitation relief.
On the basis of the individual interpretation No 0112-KDIL3-2.4011.191.2019.2.MKA
Author: Paweł Boś
Junior Tax Consultant, related to Russell Bedford Poland 2018. Author of numerous articles on legal and tax matters, published in the industry press. Law student at Leon Kozminski Academy in Warsaw.