On January 1, 2026, regulations reducing the limit of expenses for the purchase or leasing of a passenger car that can be classified as tax-deductible costs from PLN 150,000 to PLN 100,000 are to come into force.
This limit will apply to depreciation write-offs or lease installments calculated on the initial value of the vehicle, which generally consists of the net price plus 50% of the VAT (the remaining 50% of VAT is deductible in the VAT return).
For example, in the case of purchasing a car for PLN 123,000 gross (including PLN 23,000 VAT), its initial tax value will amount to PLN 111,500, meaning that PLN 11,500 will have to be excluded from tax-deductible expenses.
The restriction will apply to combustion engine cars emitting at least 50 grams of carbon dioxide per kilometer, which basically includes all combustion engines and some hybrids.
The limit for electric vehicles (excluding hybrids) and hydrogen-powered vehicles will remain unchanged at PLN 225,000. The limit for hybrids emitting less than 50 g of carbon dioxide per kilometer, which is PLN 150,000, will also remain unchanged.
According to transitional provisions, the reduced limit will not apply to vehicles purchased and recorded in the fixed assets register before January 1, 2026. However, it will apply to vehicles leased before that date.
Therefore, if you are planning to purchase cars for business purposes whose value will exceed the new limit of PLN 150,000, we recommend that you consider doing so in 2025. On the other hand, if you are considering leasing combustion engine cars worth more than PLN 100,000, it is worth checking whether purchasing them in 2025 instead of leasing them would be more cost-effective.
We are available to assist you with such calculations. |
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You will find here changes in the tax regulations discussed and commented by Forvis Mazars' experts.
