Company-Branded Clothing as a Tax-Deductible Expense – When Is It Allowed?

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Many entrepreneurs – including sole proprietors – often ask whether company-branded clothing can be treated as a tax-deductible expense. T-shirts, hoodies, jackets or blazers are commonly worn during trade fairs, conferences and business meetings.

According to an individual tax ruling issued by the Director of the National Tax Information Office on 20 November 2025, such expenses may be tax-deductible – but only if specific conditions are met.

Although the ruling concerned a software developer running a sole proprietorship, its conclusions are relevant for a wide range of industries, including IT, consulting, marketing, professional services and event-based businesses.

Facts of the Case Presented in the Ruling

The taxpayer operated a sole proprietorship taxed under the progressive personal income tax scale. He provided software development services to multiple clients and actively acquired new business during industry events, trade fairs and conferences.

He planned to:

• purchase neutral-looking clothing,

• permanently mark it with the company name and logo,

• use sewn-on or permanently attached patches placed on clearly visible external parts of the garments,

• use such clothing exclusively for business purposes, when meeting potential clients.

Key assumptions included:

• the clothing would not have a representative or luxury character,

• the branding would serve identification and brand recognition purposes,

• all expenses would be documented with invoices issued to the entrepreneur.

The taxpayer asked whether the cost of purchasing the clothing as well as the logo patches could be classified as tax-deductible expenses. The tax authority confirmed that the taxpayer’s position was correct.

General Rules – When Does an Expense Become Tax-Deductible?

Under Article 22(1) of the Polish Personal Income Tax Act, tax-deductible expenses are costs incurred in order to:

• generate income, or

• secure or preserve the source of income,

excluding expenses listed in Article 23 of the Act.

In practice, an expense must:

• be incurred by the taxpayer,

• be definitive (non-refundable),

• have a direct or indirect connection with business activity,

• be properly documented (e.g. invoices),

• not qualify as a representation expense.

  
  

Important: While the entrepreneur decides which expenses are reasonable for their business, the burden of proof lies with the taxpayer, especially in the event of a dispute with the tax authorities.

Advertising vs Representation – A Key Distinction

In disputes concerning company clothing, the crucial issue is whether the expense constitutes advertising or representation.

Representation refers to:

• actions aimed at building prestige and a luxurious image,

• creating an impression of exclusivity or “wow effect”,

• expenses such as elegant banquets or luxury brand presentation.

Representation expenses are not tax-deductible.

Advertising, on the other hand:

• aims to promote products, services or brand recognition,

• disseminates information about the company,

• includes visible display of the company name or logo.

Therefore, clothing with permanently and visibly placed company branding, provided it has a neutral appearance, may serve an advertising and identification function rather than a representative one.

When Can Company-Branded Clothing Be a Tax-Deductible Expense?

Company-branded clothing may be classified as a tax-deductible expense only if all of the following conditions are met:

1. Exclusive business useThe clothing is worn solely during business activities such as trade fairs, conferences, client meetings or industry events.

2. Loss of personal characterThe garment loses its personal nature due to a permanent, visible and recognisable company logo or name placed on the outside of the clothing.

3. Advertising and identification purposeThe branding clearly identifies the entrepreneur and increases brand recognition among potential clients.

4. No representative or luxury characterThe clothing does not serve to create an image of prestige or exclusivity and remains neutral in style.

5. Proper documentationThe expenses are documented with invoices covering:

   • the purchase of the clothing,

   • the logo or patches,

   • and, where applicable, the service of permanently attaching the branding.

If these conditions are met, the cost of the clothing and the logo placement may be treated as tax-deductible expenses.

High-Risk Scenarios to Avoid

Tax authorities often challenge expenses that appear to be personal in nature, such as:

• elegant suits or branded shoes without clearly visible company logos,

• clothing with subtle branding used both privately and professionally,

• fashionable or luxury garments that can easily be worn outside business contexts.

In such cases, the tax authority may conclude that:

• the link to income generation is only theoretical,

• the expense primarily serves personal needs,

• the cost cannot be treated as tax-deductible.

  
  

Summary

The November 2025 ruling of the Director of the National Tax Information Office confirms a business-friendly approach. Company-branded clothing that is permanently marked with a visible logo, used exclusively for business purposes, and does not have a representative character may qualify as a tax-deductible expense.

This applies both to the purchase of the clothing itself and to the costs of logo patches and their permanent attachment. The key conditions remain: loss of personal character, no private use, proper documentation and a clear business purpose.

Individual tax ruling of 20 November 2025, reference no. 0115-KDIT3.4011.809.2025.1.AK

Legal basis:

Article 22(1) and Article 23(1)(23) of the Polish Personal Income Tax Act