Will Financial Car Leasing Protect You from Tax Changes? Find Out Here

Starting in 2026, the cost limits for company-owned passenger cars will depend on the carbon dioxide emissions of their engines. If a vehicle emits 50 grams or more of CO2 per kilometer, the tax deduction limit will be PLN 100,000. Conversely, vehicles emitting less than 50 grams will have a limit of PLN 150,000. Additionally, electric vehicles will retain the current limit of PLN 225,000.

With these changes on the horizon, business owners are exploring ways to retain higher cost deductions. One option many are considering is financial car leasing rather than the more common operational leasing. Marzena Polaczek-Gierczak, the Operations Director of Superauto.pl, noted a significant increase in inquiries about financial leasing, as companies look for ways to navigate the new tax landscape.

Understanding Financial Car Leasing and Tax Implications

To maximize tax benefits, entrepreneurs needing a gasoline-powered vehicle should purchase it and register it as a fixed asset by the end of 2025. This approach allows them to benefit from the current PLN 150,000 limit. However, operational leasing does not offer the same advantage. According to tax advisor Piotr Juszczyk, only those who buy a gasoline vehicle and register it will be shielded from the tax changes, as operational leasing does not grant ownership.

• If a car is leased operationally before 2026, the taxpayer will only be eligible for a PLN 100,000 limit post-2025.
• Purchasing a vehicle before the deadline allows full amortization benefits under the current tax structure.

Financial Leasing Benefits

Financial leasing allows businesses to introduce the car into their fixed assets, thus preserving the PLN 150,000 limit until 2026. However, there is an upfront VAT cost associated with this leasing type. For instance, leasing a Hyundai Tucson incurs a VAT cost of around PLN 37,000 at the start of the agreement.

Once all lease payments are made, the leasing company transfers ownership to the lessee. In operational leasing, a separate buyout option exists, which can also utilize the PLN 100,000 limit. However, in financial leasing, this direct transfer of ownership occurs without a separate buyout process.

Comparing Financial and Operational Leasing

When considering vehicles over PLN 150,000, financial leasing may not fully mitigate the challenges posed by impending tax changes. Business owners must be aware that, while they can enjoy a combined PLN 150,000 limit for depreciation and vehicle sale costs under financial leasing, the cost structure differs from operational leasing, which allows for separate limits during the leasing period and buyout.

• Financial leasing benefits include immediate tax deductions for VAT paid on purchase.
• Operational leasing might provide better flexibility for high-value vehicles with a significant buyout cost.

Tax advisor Radosław Kowalski warns that businesses should carefully analyze their options before committing to financial leasing, especially for high-value cars. A thorough assessment with a tax advisor is advisable to ensure optimal decision-making.

In conclusion, financial car leasing presents an appealing option for businesses aiming to mitigate tax implications of upcoming changes. However, weighing the total costs and advantages against operational leasing will be crucial for entrepreneurs.