Sponsorship relief

13 November 2025

In recent years, more entrepreneurs have been participating in sports sponsorship, supporting local clubs, young athletes, and organizing sporting events. However, they are not always aware that this also results in lower tax payments. This is due to the so-called sponsorship tax relief, which is one of the tools encouraging businesses to support the development of sports, culture, and science in Poland.

Who is this relief for?

Sponsorship relief was introduced for taxpayers engaged in business activities, regardless of their legal structure. It is available to both sole proprietors and legal entities, such as limited liability companies and joint-stock companies.

Suppose you generate income (revenue) from non-agricultural business activities, the income from which is taxed under general principles according to the tax scale (i.e., at a rate of 12% or 32%) or a flat tax. In that case, you can benefit from the sponsorship relief.

In the Polish tax system, sponsorship relief is covered by Article 18ee of the Corporate Income Tax Act (CIT) and Article 26ha of the Personal Income Tax Act (PIT).

The key requirement for applying this preference is that the expense in question be tax-deductible. This is particularly important because the line between donation and sponsorship can be very narrow. However, in the context of sponsorship relief, the requirement of mutual benefit must be met.

Sponsorship should be arranged so that the beneficiary (such as a sports club or a cultural institution) provides a service or benefit to the sponsor in return for financial support, usually through logo display, advertising, or brand promotion. This is when the expense becomes deductible and eligible for tax relief.

What does it involve?

The relief consists of the possibility of an additional deduction from the tax base of 50% of the costs incurred for the activity:

Sports;
cultural within the meaning of the Organizing and Conducting Cultural Activities Act of October 25, 1991, or;
supporting higher education and science.

In practice, this means that an entrepreneur can deduct up to 150% of sponsorship costs.
This includes:

100% of the costs of obtaining revenues (standard settlement),
+50% additional deduction as part of the relief.

This solution is available to both PIT and CIT taxpayers, provided they generate income from business activities (PIT) or from sources other than capital gains (CIT).

What expenses for sports activities can be covered by the tax relief?

The relief applies to financing, among others:

Sports clubs pursuing sports objectives specified in the Sports Act, operating in a given area of a local government unit, which does not conduct profit-making activities and may receive a subsidy from the local government budget, in accordance with the provisions of the Public Finance Act
Sports scholarships – understood as unilateral, non-repayable monetary benefits provided to athletes to reward achievements or prepare for competitions.
Sports events – excluding mass events, which are subject to a separate Safety of Mass Events Act.

How to calculate sponsorship relief?

The deduction is made in the annual tax return for the tax year in which the costs were incurred.
The taxpayer must also submit information using a specific template, listing the expenses subject to deduction.

It is worth remembering that the deduction cannot exceed the amount of income earned in a given tax year.

Why is it worth using?

Sponsorship relief is not only a tax benefit but also an investment in local community development, young talent, and a healthy lifestyle. It provides businesses with real financial support and allows sport to develop more sustainably and independently of public funds.

The relief is part of a broader strategy to support CSR (Corporate Social Responsibility), build a positive image of the company, and strengthen its relations with the local community.

Summary

Sponsorship relief is a key mechanism that links the worlds of business and sport in a mutually advantageous way. Due to straightforward accounting rules and measurable financial gains, it can become an essential tool for supporting Polish sport, from local clubs to nationwide programs.

Our law firm is happy to help you with any issues regarding sports and tax law. We have a dedicated tax law team that effectively handles even the most complex problems.

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