In 2021, new legislation was passed that introduced significant changes, including provisions affecting tax settlements for entrepreneurs. These regulations came into force at the beginning of 2026. One of the lawmakers’ primary objectives was to encourage businesses to replace their internal combustion vehicle fleets with low-emission alternatives. Preferential tax treatment for low-emission vehicles was designed to offset their higher purchase costs compared to combustion-engine cars and, ultimately, accelerate market transformation.
Although entrepreneurs have theoretically had several years to adapt to the new rules, the process of replacing or upgrading vehicle fleets is complex and costly. In practice, the new regulations may lead to significant tax implications for most businesses, especially considering that the vast majority currently operate vehicles powered by combustion engines.
The role of passenger car depreciation in business operations
Passenger cars are among the most common fixed assets used in business activities. Many companies choose to build and maintain their own fleets – a decision driven not only by operational needs but also by economic considerations. Owning company vehicles helps reduce reliance on external transportation services and enables preferential tax deductions under CIT (for corporations) or PIT (for sole proprietorships).
Depreciation is one of the key mechanisms allowing entrepreneurs to reduce their taxable income. It involves gradually writing off the value of a fixed asset – in this case, a vehicle – as a tax-deductible expense through depreciation charges. Each charge represents a portion of the vehicle’s initial value, which, from an accounting perspective, depreciates over its period of use.
In practical terms, the purchase cost of a car is not expensed all at once but spread over several years based on a set depreciation rate. This enables businesses to systematically reduce their taxable base, ultimately leading to lower income tax payments. The rules and limits for these deductions are defined by law — and these will change significantly starting in 2026.
Depreciation limits in 2025
Tax-deductible expenses do not include the full value of passenger vehicles used in business operations. The rules in effect last year imposed depreciation limits depending on the type of vehicle. Entrepreneurs could claim depreciation charges as tax-deductible costs up to the following amounts:
- PLN 225,000 – for electric or hydrogen-powered vehicles,
- PLN 150,000 – for all other passenger cars.
If the value of the vehicle exceeded the above thresholds, the excess amount was not considered a tax-deductible expense.
New depreciation rules from 2026
Starting January 1, 2026, new depreciation limits for passenger cars will apply. Under the amended legislation, the deductible amount of depreciation charges will depend on the vehicle’s CO2 emission level.
The new thresholds are as follows:
- PLN 225,000 – for electric and hydrogen-powered vehicles,
- PLN 150,000 – for low-emission vehicles emitting less than 50 g CO2/km,
- PLN 100,000 – for all other vehicles, including most combustion-engine and traditional hybrid cars.
In practice, this means the lower limit will apply to nearly all combustion-engine vehicles, resulting in higher tax burdens and reduced deductibility of car-related expenses for many businesses.
It is also important to note that transitioning to low- or zero-emission fleets involves more than just the cost of vehicle acquisition. Entrepreneurs must also consider infrastructure investments – particularly the installation of charging stations – as well as additional organizational and logistical expenses. As a result, the new depreciation limits may lead to further financial burdens beyond the tax implications alone.
If these new regulations are likely to impact your tax strategy or investment decisions related to your fleet, we recommend a personalized consultation. We will help you assess the implications of the upcoming changes and choose solutions best suited to your company’s specific
