E-TOLL relief

According to the official website on the title system: "The e-TOLL system is a modern solution built, implemented, maintained and supervised by the Head of the National Tax Administration in order to collect tolls on toll roads in Poland managed by the General Directorate of National Roads and Motorways"[1].

Apart from automotive issues, the service can be beneficial to income tax taxable persons who equip their vehicles with toll collection devices in a given system. From 29 June 2021 in income taxes, the so-called e-TOLL relief was introduced.

But what is the e-TOLL relief and who can benefit from it? It has been regulated accordingly under Article 52ja(1) Personal Income Tax Act[2] and Article 38ea(1) Corporate Income Tax Act[3]. According to the provisions in question, the taxable person may deduct from the income from non-agricultural economic activity or from the income from special agricultural production units established for 2021, or from income from other sources of income than capital gains to deduct incurred in 2021:

• expenditure on the acquisition of an external location system or on-board facility,
• fees for the contract for the operation of an external location system or on-board equipment referred to under Article 13i(3b) sentence second Act dated 21 March 1985 on public roads,
• charges for the lease, lease or lease of an external location system or on-board facility or other similar contract under which such system or such equipment was put into service
• - less tax on goods and services.

In addition, according to Article 52ja(2) Personal income tax laws, deduction from income from special agricultural production departments shall apply if this income has been established on the basis of accounts or tax revenue and income statements.

The expenditure mentioned above shall be deducted up to the amount of the product 500 PLN and the number of external location systems or on-board devices.

At the same time, the number of these systems or devices must not exceed the number of vehicles which they have made in 2021 at least one the journey for which the taxable person, and in the case of taxable persons who are members of a company which is not a legal person, paid an electronic charge using this external location system or on-board device.

It should also be added that expenditure is deductible if it has not been reimbursed to the taxpayer in any form or deducted from revenue under the flat-rate income tax Act.

According to the Personal Income Tax Act, the deduction is made in the statement for 2021, However, is it the same in the Corporate Income Tax Act? Under that provision, the deduction shall be made in a statement made for the tax year in which the expenditure was incurred and, in the case of a taxable person whose tax year is different from the calendar year, the deduction may be made in a statement made for the tax year covering the day 31 December 2021

Where the deduction in question is used, the provisions on the exclusion from the cost of obtaining revenue from the consumption of fixed assets and intangible assets made from that part of their value which corresponds to the expenditure incurred for the acquisition or production of those assets or intangible assets, deducted from the tax base by income tax or reimbursed to the taxpayer in any form.

Michał Zdanowski

Tax consultant in Russell Bedford Poland. Graduate of the Faculty of Law and Administration of the University of Warsaw, Graduate of the Postgraduate Tax and Tax Law Studies of the University of Warsaw, Graduate of the Postgraduate Accounting and Finance Studies of the Warsaw School of Economics. During his studies, he gained experience in law and tax law firms. Since September 2013 is associated with the law firm Russell Bedford Poland. It specialises in documenting transactions between related parties.