One of the basic objectives of entrepreneurs is to develop their business in order to increase the profit. It is no different in the educational industry. Entities running private schools strive not only to improve the quality of education and offer creative and developing after-school activities, but also to provide their services to more and more students. Despite the growing popularity of remote learning, the increase in the number of students is naturally associated with the need to provide them with a place to study. The lease of a building for running a school is not always the best solution, which is why some entities decide to construct or purchase a school.

Due to the prices of real properties, scaling the educational activity involves considerable expenses. As one of our clients found out, it is possible to reduce costs i.a. by benefiting from the tax exemption.

If the funds for construction or purchase of a school come from the previously generated income from running the school (e.g. from initial fees or tuition), such income may be exempt from taxation with the income tax. Such interpretation of regulations was questioned in the past by tax authorities. However the legal argument presented in the application for an individual interpretation convinced the tax office to change its position for the one in favour of our client.

The positive tax interpretation was obtained by Mateusz Dyśko, attorney-at-law and tax advisor.