Draft, subject to legal review. Not an offer or legal advice.
The 50% author's costs (KUP): what they are and how to use them
Version 0.2 of 04/10/2026
Employees in Poland who create copyright works as part of their job (for example developers, architects, designers, journalists) can deduct 50% tax-deductible costs from part of their pay instead of the usual fixed costs. The employee pays less income tax in advance, and the employer's payroll costs (gross pay and social contributions) stay the same. The condition: the company must be able to show that the works were really created and the rights passed to the employer.
The legal basis in brief
- Art. 22(9)(3) of the Polish PIT Act: 50% costs on income from copyright (using it or transferring it).
- Art. 22(9b): a closed list of fields where the relief applies, including software, games, architecture, civil engineering, literature, visual arts, music, photography, audiovisual work, journalism, research and development. Details: Who it is for.
- Art. 22(9a): costs are capped at PLN 120,000 per tax year (the first threshold of the tax scale).
- A work under art. 1 of the Polish Copyright Act: any manifestation of creative activity of an individual nature, recorded in any form.
The relief applies to employment contracts, and to mandate and specific-task contracts that transfer copyright. It does not apply to the self-employed (B2B); they have other options such as IP Box.
What it is worth: a simplified example
A developer earns PLN 10,000 gross a month, and the contract assigns all of the pay to creative work.
| Standard costs | 50% KUP | |
|---|---|---|
| Gross pay | PLN 10,000 | PLN 10,000 |
| Employee social contributions (13.71%) | PLN 1,371 | PLN 1,371 |
| Tax-deductible costs | PLN 250 | approx. PLN 4,315 |
| Taxable base (rounded) | approx. PLN 8,379 | approx. PLN 4,314 |
| Difference in advance tax at 12% | approx. PLN 490 a month less |
That is about PLN 5,900 a year per person with no change to the employer's payroll costs. At higher pay (32% rate) the difference is larger, up to the annual cap of PLN 120,000 in costs. The example leaves out individual allowances and does not replace a payroll calculation.
Conditions the company must meet
- The contract states that the job includes creating works, which part of the pay (or what share of time) covers creative work, and that copyright passes to the employer.
- A policy or regulation describes who creates works, in which roles, and how they are recorded.
- Works are really created: specific, individual results of work, not routine activities (meetings, support, administration).
- A record of works: for each person and month it shows what was created, when and where to find it (link, commit, file), and that someone checked and accepted it.
- The creative part of pay is calculated consistently: from hours in that month or a fixed percentage per job role.
Common failures in a tax audit
- A creative percentage written into the contract "just in case", with no record of works.
- Records created after the fact, just before an audit, with no dates or approval trail.
- Routine activities claimed as works: meetings, reports, scripted testing, user support.
- A field of work outside the list in art. 22(9b).
- 50% costs applied to pay for holidays, sick leave or other periods without creative work (tax authorities are often strict here).
- No proof that copyright actually passed to the employer.
How Kronika Pracy helps
Each month employees list their works in one submission. An AI pre-review checks each entry against the legal criteria and the company's policy, and their approver accepts it or returns it with feedback. Approved submissions are locked, and a correction creates a new, linked version. From the register you can prepare an evidence pack (PDF) for an audit. Kronika Pracy does not run payroll: payroll receives the approved creative percentage.
See also: Who it is for, Getting started, Security and data.
This page is general information, not tax advice. Confirm the rules for your company with a tax advisor. Book a demo.