Apple Tax Breaks

Apples for Poland

Apples for Poland

The tax chamber in Katowice has issued an interpretation granting tax allowances to companies that buy apples for their employees. Apples and taxes have been a topical issue for several months now. Everything started when Ryszard Florek, CEO of Fakro, the global number two manufacturer of roof lights, sent a letter to the minister of economy. Florek mooted the idea of how to utilise Polish apples after the Russian embargo on fruit, vegetables and other agroalimentary products was introduced in August. He suggested that companies buy the fruit for their employees. Poland produces 3 million tonnes of apples annually and before the embargo its exports to Russia stood at 0.7-0.8 million tonnes, which made the country the world’s greatest exporter of the fruit. The ministry of finance assured tax payers that certain tax allowances would be possible but each company should apply for an individual tax interpretation. Florek did so at the beginning of September and has just received a response. Two questions had to be resolved. The first was whether the purchase of apples could be recognised as a tax-deductible expense. The application argued that if expenses that directly or indirectly increase company revenues could be deducted from taxes, apples fall into this category. Making apples available to employees is a form of contributing to their good health and well-being, which may help improve the atmosphere at work and, as a result, enhance performance thanks to greater motivation and reduced absenteeism. The second question was whether the value of the apples should be included in employee income before taxes and social insurance contributions. The company claimed this should not be the case since the fruit was made available in common spaces in offices and manufacturing plants and not handed to individuals so it would be impossible to determine who ate how many, if at all. The tax chamber agreed with the company’s position on both matters.

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