The tax dimension of corporate social responsibility, including recognising CSR expenses in income tax settlements

Abstract

Purpose: The article presents the scope of disclosed information relating to tax issues in non-financial reports, including corporate social responsibility (CSR) expenses and how they are recognised when settling corporate income tax.Methodology/approach: Firstly, based on a study of the literature and legal regulations, the tax issues under CSR are addressed, CSR expenses are characterised, and how they are recognised in corporate income tax settlement is discussed. Secondly, an empirical study was conducted based on the content analysis of non-financial reports of entities included in the WIG 20, excluding banks and insurers, in terms of tax disclosures, including CSR expenses.Findings: The surveyed companies rarely refer to tax issues in their non-financial reports. Furthermore, they do not disclose the tax benefits related to the expenses of CSR. Based on the research, it can be concluded that CSR should be extended to tax issues, but it is not necessary to designate a separate area.Originality/value: In the literature, little is known about tax issues in CSR, although tax solutions are increasingly being introduced to encourage enterprises to behave socially responsibly. Therefore, the originality of the article is that it expands knowledge on this topic.

Keywords

• corporate social responsibility
• CSR expenses
• corporate income tax
• non-financial reporting