Legal basis: Article 15(1) of the Polish Corporate Income Tax Act (CIT)

The general rule is that tax-deductible costs are expenses incurred for the purpose of generating income or preserving or securing a source of income (with exclusions listed in Article 16).

Important tax ruling: ILPB3/423-800/08-5/KS

In an individual tax ruling issued by the Director of the Tax Chamber in Poznań (ref. ILPB3/423-800/08-5/KS), the authority indicated, among other things, that expenses incurred after the company has been formed may constitute tax-deductible costs of the company. It was explicitly stated that:

“the fee for entry into the National Court Register (KRS) and the fee for granting a power of attorney (…) constitute (…) tax-deductible costs of the Company.”

This is an important interpretative guideline: costs incurred from the moment the company is formed (i.e. when it already exists as a company in organization) may be treated as the company’s tax-deductible costs, provided they meet the conditions set out in Article 15(1) of the CIT Act.

What does this mean in practice for a virtual office?

A virtual office service (including, among others, the right to use an address, mail collection, and mail management) is, as a rule, an expense that:

• has a business purpose (enables company registration and day-to-day operations),
• serves to secure the source of income (a company needs an address for communication with authorities and business partners),
• is rational and typical for business activity.

At VirtOffice, the agreement is generated automatically within the service purchase process and constitutes a document confirming the right to use the address — in practice, it is the most important piece of evidence for accounting purposes and potential tax authority verification.

How to ensure proper documentation for tax-deductible costs?

To safely recognize the expense as a tax-deductible cost, it is advisable to have:

• the agreement (downloaded from the VirtOffice system),
• an invoice or receipt for the service,
• consistency of dates (the cost should be incurred by the company once it already operates as a legal entity).

Note: In each case, the final qualification of an expense depends on the specific factual circumstances and how it is recorded in the accounting books — it is recommended to consult the accounting firm handling the company’s settlements.

If you want to rent an address and receive complete documentation immediately, the entire process at VirtOffice is carried out online via our website: virtoffice.pl