In an individual interpretation dated April 16, 2025 (ref. 0111-KDIB1-3.4010.87.2025.1.MBD), the Director of the National Tax Information (KIS) confirmed the possibility of recognizing unpaid PIT advances as tax-deductible costs. This decision enables taxpayers to simultaneously benefit from the R&D relief and the preference for employing innovative specialists in a way that generates a triple advantage: reduction of the CIT base through R&D relief, no obligation to pay PIT advances, and an additional deduction from the tax base for the value of unpaid advances.
The case concerned a company engaged in software development, providing high-end services in the area of research and development as well as prototyping of systems, subsystems, and implementation of complete products and services. Since the company focuses largely on digitizing processes and software development, its operations are based on cutting-edge IT technologies and the independent development of innovative IT solutions.
The company carries out R&D projects, which involve writing, modifying, restructuring, or adapting code to new solutions, resulting in the creation of innovative products and services. To support this work, the company employs highly qualified specialists such as software developers, software engineers, testers, and system/software architects. As a result, the company creates intangible assets like source code, which require innovative approaches from its personnel and are non-replicative in nature. The company uses both the R&D relief and the relief for innovative employees and had significant unclaimed qualified wage costs. Therefore, it requested an interpretation on whether it could recognize gross salaries of specialists as tax-deductible costs, including the portion representing PIT advances that were not remitted to the tax office under the innovative employee preference.
In its justification, the company relied on the literal wording of the CIT Act. According to the company, the Act does not introduce any special rules regarding the extent to which PIT advances may be deducted as tax costs. Therefore, pursuant to Article 15(4g) in conjunction with Article 16(1)(57) of the CIT Act, it argued that gross salaries can be included in tax-deductible costs as long as the remuneration is paid, settled, or made available to the employee. The company maintained that any different interpretation would contradict the principle of literal interpretation and the principles of certainty and predictability of tax law. The Director of KIS agreed with this reasoning and issued the interpretation without providing additional legal justification.
This individual interpretation opens the door to an exceptionally effective tax planning mechanism that can significantly reduce the actual tax burden for businesses engaged in R&D and employing qualified personnel. The same expenditure can be accounted for multiple times in different areas of tax settlements. Initially, the tax base can be reduced through qualified wage costs under the R&D relief; the unclaimed portion may then be used to reduce PIT advance payments; and finally, in line with the interpretation, the unpaid PIT advances can be recognized as tax-deductible expenses.