Legislative work is underway on the draft law amending certain laws to introduce simplifications for entrepreneurs in tax and economic law. In the above draft, the cost of obtaining income shall be deemed to be the value of the work of the spouse or minor children, as well as of the spouses and minor children of the partners, irrespective of their form of employment. Changes would enter into force 1 January 2019
The simplification project for entrepreneurs in tax and economic law assumes that a person conducting an economic activity will be able, after the entry into force of the legislation, to consider as a cost of obtaining income the value of the work of a spouse or minors of children, as well as spouses and minors of the children of partners, regardless of their form of employment.
The condition to demonstrate the link between remuneration and income from business remains unchanged. The salary will therefore be included in the costs for both the contract and the contract contract.
The purpose of the proposed change in Article 23(1)(10) is to introduce a regulation allowing a taxable person pursuing an economic activity to consider the cost of obtaining income for the work of a spouse or minor children, as well as spouses and minor children of partners, whatever the form of employment takes.
After the changes enter into force, any entrepreneur employing children or a spouse in the company will be given the opportunity to credit not only the contributions paid to the Social Security Institution, but also the full amounts spent on salaries for members of the immediate family.
Currently Article 23(1)(10) The PIT Act indicates that the costs of obtaining the income of the taxpayer's own work, his spouse and minors, and, in the case of operating in the form of a company which is not a legal person, also the spouses and minors of the shareholders of the company.
Despite the ban on including the remuneration of a family member in the company's costs, the current tax rules did not remove the obligation of the entrepreneur to deduct from the amount of such remuneration the ZUS contributions as well as the advance on income tax. The legislation so far has not been conducive to the employment of family members, which has hampered the development of family businesses. The cost ban was for spouses but did not include partners in informal relationships.
In response to Question No 17558 of 1 December 2017 on the cost of obtaining revenue, it was pointed out that:
„The purpose of the proposed change in Article 23(1)(10) is to introduce a regulation allowing a taxable person pursuing an economic activity to consider the cost of obtaining income for the work of a spouse or minor children, as well as spouses and minor children of partners, whatever the form of employment takes. There will therefore no longer be a difference in the cost of obtaining income for the work of the spouse and minors and the remuneration of other persons employed by the entrepreneur."