The law prevents businesses from supporting culture

A new tax credit called sponsorship tax credit, effective since January, gives individuals the option to deduct 50 percent of the costs incurred for cultural activities from their taxable income. As a result, entrepreneurs who support culture can claim 150 percent of the costs incurred. It isn't easy, however, to take advantage of this solution, as representatives of business and culture point out. In addition to being unclear in several key areas, the provisions only apply to art schools and universities and cultural activities that they conduct.

“Sponsorship relief implies that the legislator intended to cover primarily the advertising expenses incurred by the entity. As a result, sponsorship agreements must include reciprocal benefits in the form of promotion or advertising for the entrepreneur," said Prof. Adam Marinski, Director of Lazarski University's Center for Tax Thought.

(WBJ)