A large proportion of companies operating in the broadly understood new technology industry not only rely on cooperation with persons employed under employment contracts, but also benefit from the work of other specialists and persons running their own sole proprietorships within the framework of so-called B2B cooperation. The regulations allow for this possibility, provided that the relevant conditions are met (we have written more about this here).
This is the result of a changing economic reality in which the self-employed work alongside full-time employees and are treated as an integral part of the team. Therefore, companies offer them various non-wage benefits, just like employees, and also invite them to participate in team-building events. However, the question arises as to whether the expenses for these benefits can be treated as tax-deductible expenses for the clients’ business.
Non-wage benefits
The benefits offered to B2B employees and co-workers mainly include health insurance, sports cards, cafeteria programmes and insurance. They are an addition to the basic salary and are intended to attract and retain specialists. Companies decide to finance such benefits to make working with them more attractive, especially since it has become the market standard.
Fortunately, regarding this type of benefits, the Director of the National Tax Information (NTI), responsible for issuing individual tax interpretations, adopts a taxpayer-friendly stance. For example, in an interpretation issued on December 19, 2024 (ref. 0111-KDIB1-3.4010.629.2024.2.ZK), it was stated that: When assessing the nature of the planned expenses incurred by your company for non-wage (non-monetary) components of the remuneration paid to collaborators (such as Multisport Cards, Medical Packages, Lunch Cards, and Insurance), and considering the explanations provided above, it should be concluded that under the circumstances described, these expenses may qualify as tax-deductible costs under Article 15(1) of the CIT Act. This is because the information included in the application clearly indicates a cause-and-effect relationship between the expenses incurred for the specified non-wage (non-monetary) remuneration components and the company’s revenue generation, as well as the maintenance or security of its revenue sources.
A similar position was taken by the NTI Director in an interpretation dated 25 October 2021 (ref. 0111-KDIB1-1.4010.312.2021.4.NL) concerning the possibility of including expenses for a cafeteria system in tax-deductible costs, in response to a question from a software development company.
In conclusion, the legitimacy of financing such benefits by clients and their relationship to the business activity are not questioned by the tax authorities.
What about team-building events?
The situation becomes more complicated when a company invites self-employed people to team-bilding events that are also organised for its employees. In such cases, the tax authorities generally consider that expenses for these purposes are of a representative nature, which means that they cannot be included in tax-deductible costs, even if they are related to the company’s activities.
This position is presented almost uniformly in the individual interpretations issued. For example, in one of them, a software development company asked whether expenses for organising team-building meetings for employees and contractors could constitute tax costs.
The application emphasised that the employees and contractors work in different locations, often remotely, and the organisation of meetings is aimed at improving cooperation, exchanging experiences and building relationships in the team. However, the NTI Director refused to recognise the expenses related to contractors as a tax cost for the IT company (interpretation of 12 June 2024, ref. 0114-KDIP2-1.4010.221.2024.2.DK).
A more liberal approach can be found among administrative courts. There are also positive rulings. An example is the judgement of the Regional Administrative Court in Poznań of 21 April 2023, file ref. I SA/Po 114/23, in which the court noted the company’s argument that within the company’s adopted work organisation model, associates are a permanent element of the company’s entire team, participating in projects carried out by the company on a similar basis to employees. It is important to emphasise that the associates are not the company’s clients and that they work on projects together with the employees, and that (…) All of the above elements translate into increased work efficiency and better work performance, which in turn improves the company’s financial results.
On the other hand, in the National Administrative Court judgement of 19 October 2022 (ref. II FSK 572/22), the court ruled that the self-employed are independent economic entities and do not require additional motivation, as it should result from the very nature of economic activity, which is by definition aimed at maximising profits. Therefore, expenses for their participation in team-building events should be treated as representation expenses and therefore not be tax-deductible.
Summary
In the case of non-wage benefits such as health insurance, cafeteria plans or insurance, the situation is clear – the tax authorities consider them to be tax-deductible expenses. However, the tax authorities have a more restrictive stance on team-building trips, although an increasing number of favourable rulings can be seen in the judgments of administrative courts. Hopefully, a uniform and more flexible approach will be developed in the future, taking into account changing work models and the need to build relationships in teams made up of both full-time employees and B2B colleagues.
