2025-06-17
Major changes to company car tax deductions starting in Poland from 2026
Major changes to company car tax deductions starting in Poland from 2026 Beginning January 2026, Polish rules for deducting the cost of passenger vehicles used for business purposes (tax depreciation) will undergo significant changes. The new regulations, adopted in 2021 yet effective 2026, will introduce stricter limits, shifting the focus from the vehicle’s value to its CO₂ emissions. This marks a major policy shift that will particularly impact businesses purchasing combustion engine vehicles.
Major changes to company car tax deductions starting in Poland from 2026
Beginning January 2026, Polish rules for deducting the cost of passenger vehicles used for business purposes (tax depreciation) will undergo significant changes. The new regulations, adopted in 2021 yet effective 2026, will introduce stricter limits, shifting the focus from the vehicle’s value to its CO₂ emissions. This marks a major policy shift that will particularly impact businesses purchasing combustion engine vehicles.
What’s changing?
Under the new framework, the maximum deductible amount for passenger cars acquired from 2026 onwards will depend on the car’s emissions:
• PLN 225,000 – for fully electric or hydrogen-powered vehicles
• PLN 150,000 – for vehicles emitting less than 50 g CO₂/km (primarily select plug-in hybrids)
• PLN 100,000 – for all other vehicles, including the majority of combustion engine and traditional hybrid models
Currently, only two limits apply: PLN 225,000 for electric vehicles and PLN 150,000 for all others. As of 2026, many businesses will no longer be able to fully deduct the cost of their vehicles.
Notably, the PLN 150,000 limit has remained unchanged since 2019, even as car prices have risen significantly in recent years. Instead of adjusting this threshold to reflect market realities, the government is now reducing it further.
What about leasing?
Leasing adds another layer of complexity. As of now, there are no clear transitional provisions ensuring that operational lease or rental agreements signed in 2025 will remain subject to the current (i.e. relatively better) tax treatment in subsequent years.
If you’re considering leasing, a safer approach may be purchasing the vehicle outright or opting for a finance lease, provided the vehicle is entered into your fixed asset register before the end of 2025.
What should you do now?
• If you’re planning to acquire a company vehicle, do so before the end of 2025.
• Always check the vehicle’s CO₂ emissions—this figure might determine your tax deduction limit.
• If you’re exploring leasing options, consult with a tax advisor to fully understand the implications and avoid surprises in 2026.
The new rules clearly reflect a policy shift toward incentivizing low-emission vehicles. However, for many businesses, this will result in higher tax liabilities and more complex compliance requirements—unless decisions are made strategically and in advance.
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