Expenditure on benefits for B2B colleagues can be claimed as a deductible expense.
An individual interpretation by the Director of the National Fiscal Information dated 19 December 2024 (ref. 0111-KDIB1-3.4010.629.2024.2.ZK) confirms that expenses incurred by the company for benefits for co-workers operating in the B2B model may be recognised as tax deductible costs.
Pursuant to the provisions of the CIT Act, expenses may be recognised as tax deductible costs if they were incurred in order to obtain, preserve or secure revenue or had an impact on the amount of revenue, provided that they are not excluded from costs under Article 16(1) of the Act. These expenses must be incurred by the taxpayer, be definite, related to the business, properly documented and purposeful in the context of generating revenue.
In turn, Article 16(1) of the CIT Act lists the costs that cannot be classified as tax deductible, e.g. costs of representation, such as catering services, purchase of food and beverages, including alcoholic beverages (Article 16(1)(28) of the CIT Act). Therefore, costs of representation are deemed to be expenses incurred to build a specific image of the company in the eyes of its potential or current business partners.
In the facts presented, the company cooperates with experts and specialists in various areas in a B2B model (associates). As part of the contracts, in addition to cash remuneration, it offers so-called benefits, such as Multisport cards, medical packages, lunch cards and life insurance. The company’s associates will only receive benefits for the duration of their contract with the company.
The company indicated that the purpose of the benefits is to increase motivation to establish and maintain cooperation, which is expected to have a positive impact on the company’s business. In addition, the benefits are seen to promote a healthy and active lifestyle for co-workers, which is conducive to the uninterrupted and continuous provision of services.
In conclusion, the company’s planned expenses for non-wage elements of remuneration, such as Multisport cards, medical packages, lunch cards and life insurance for co-workers, may constitute deductible expenses under Article 15(1) of the CIT Act. This is due to the existence of a causal relationship between these expenses and the achievement, preservation or safeguarding of the company’s revenue. Therefore, the company’s position regarding the recognition of these expenses as tax deductible costs in the B2B cooperation model is correct.