According to a decision given by the Supreme Administrative Court on 27 March 2014 (ref. no. II FSK 1049/12), the company has the right to include holiday benefits paid out under tax deductible costs, regardless whether the benefits have been paid out from the monies deposited in the company social fund or not.

In the matter of a binding ruling examined by the Fiscal Chamber in Poznań (no. ILPB3/423-250/11/14-S/JG), the Supreme Administrative Court emphasised that the costs treated as tax deductible are holiday benefits which are paid out in accordance with the Company Social Fund Act but not necessarily from the monies deposited in such fund.  

Our expert, Marcin Sobieszek, comments as follows: It is absurd to make the possibility to include holiday benefits under costs dependent on the number of employees. So it is good that the Court showed a common sense. The tax regulations prescribe only that the company should not deduct the same amount twice: first as a contribution to the company social fund and again as an actual expense to co-finance the employee’s holiday.

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