The individual ruling issued by the Director of the National Tax Information (KIS) on 3 December 2025 (ref. 0111-KDIB2-1.4010.460.2025.1.KW) concerns the classification of expenses incurred by an employer for financing educational courses for employees’ children as tax-deductible costs.
In light of the growing importance of non-wage benefits in corporate HR policies, this ruling is particularly relevant for taxpayers considering the inclusion of such programs in their tax costs.
The factual background involved a program introduced by a manufacturing company under which employees could enroll their children, aged 2 to 18, in educational courses. The company covered the full cost of the courses based on invoices issued by the educational provider, while employees were responsible only for the cost of teaching materials. The program aimed to stabilize employment, reduce recruitment costs, and enhance the employer’s attractiveness in the labor market. Additionally, a partial reimbursement obligation was предусмотрено in the event of termination of employment during the benefit period.
The company argued that these expenses met the criteria set out in Article 15(1) of the Polish Corporate Income Tax (CIT) Act, as they were intended to secure the source of revenue by reducing employee turnover and limiting costs associated with filling vacancies. In its view, the program increased employee loyalty and improved organizational conditions, thereby providing an economic justification for recognizing these expenses as tax-deductible.
The Director of KIS disagreed with the company’s position. The authority stated that the costs of educational services provided to employees’ children do not fall within the category of employee-related expenses, as they are not linked to improving employees’ professional qualifications and do not demonstrate a direct connection with the taxpayer’s business activity. It was emphasized that employees’ children are not parties to the employment relationship, and the facts of the case did not indicate that the funded education was intended to prepare them for future employment within the company. Consequently, the authority concluded that such expenses do not serve the purpose of generating or securing revenue.
In its reasoning, the Director of KIS highlighted that classifying an expense as tax-deductible requires demonstrating an objective causal link between the cost incurred and the revenue generated. This link should be direct and economically justified from the perspective of the taxpayer’s business activity. The authority further underlined that benefits concerning employees’ family members are not of an employee-related nature and serve a different purpose than traditional HR policies focused on employees’ professional development.
However, in interpretative practice, a different approach can be observed. In a ruling dated 27 March 2023 (ref. 0114-KDIP2-2.4010.35.2023.2.PK), concerning the financing of a manager’s child’s education, the Director of KIS acknowledged that such an expense could qualify as tax-deductible, provided that the benefit remained functionally linked to retaining a key employee and implementing the company’s strategy. It was emphasized that factors such as employment stability and the attractiveness of working conditions may justify recognizing such expenses as tax-deductible, provided a clear connection to the employer’s business interest is demonstrated.
The differences between these rulings demonstrate that the assessment of non-wage benefits largely depends on the nature of the beneficiary and the degree of connection between the benefit and the employee’s work. In the case of benefits directed to employees’ children, tax authorities consistently indicate that there is insufficient linkage to business activity, and therefore no basis for recognizing such expenses as tax-deductible.
From a practical tax perspective, the December 2025 ruling confirms the restrictive approach of tax authorities toward family-related expenses. Employers planning to implement benefit programs covering employees’ children should carefully analyze their structure and assess whether a sufficient link to the company’s business activity can be demonstrated. Given the divergent positions presented in previous years, obtaining an individual tax ruling may be advisable in cases of uncertainty.
The ruling of 3 December 2025 indicates that financing the education of employees’ children does not meet the criteria for classification as tax-deductible costs under the CIT Act. At the same time, a comparison with earlier rulings shows that the assessment of similar benefits may vary depending on the specific circumstances, which requires taxpayers to exercise particular caution when designing and documenting non-wage benefit programs.