Monument relief: purchases of monuments eligible for tax relief until end of year only

The tax relief for monuments will be affected too. The government initially wanted to abolish that relief altogether but eventually, after public consultation, decided to modify it. Who and how can benefit? 

The monument relief introduced by the Polish Deal has been in place since the beginning of 2022. It allows tax-deductibility of a part of expenses for restoration, conservation and construction work on a monument, as well as expense for purchase of a monument. 

The relief for monuments allows tax-deduction of:

The relief is available to taxpayers liable to PIT, who account for the tax using the tax brackets, linear tax or the flat-rate tax on recorded income.

Contributions to the renovation fund and expenses for restoration, conservation and construction work may be deducted in the tax return for the year in which they are actually incurred. 

Expenses for purchase of a monument should be deducted in the tax return for the year in which the first expense for any work on that monument is incurred. 

If the annual income is lower than the deduction amount, it may be deducted in the subsequent years but in no more than six subsequent years.  

Following the revision to the PIT Act as part of the Polish Deal, the rules of the monument relief will change as well. 

Starting from 1 January 2023, taxpayers will no longer be able to enjoy the relief in respect of expenditures incurred to buy an immovable monument entered in the monument register, or a share in such a monument. Consequently, starting from 2023, the base for assessment of the relief will amount to the contributions to the renovation fund and for conservation, restoration or construction work on the monument. 

Also the rules of deductibility of expenses for conservation, restoration and construction work on an immovable monument will change. It will be necessary to obtain a certificate from the provincial historic preservation officer that the work has been completed. This means that the benefits of the relief will not be available until after the repair and conservation work is done. 

The explanatory notes to the statute say that the rights already vested remain. This means that a taxpayer who purchases an immovable monument until the end of 2022 will enjoy the relief in the tax return for 2022, that is on the rules applicable since the beginning of this year. The legislation applies to all expenses incurred in 2022, i.e. for conservation, restoration or construction work on an immovable monument or for a purchase of an immovable monument.