Polish tax incentives
... in a favor of research
Since the 1st of January 2016, polish entrepreneurs, the CIT or the PIT taxpayers, can benefit from a tax relief related to their research and development (R&D) expenditures.
In 2016, this tax deduction for R&D varied from 10% to 30% of eligible costs.
In 2017, the relief has increased to 30% to 50% of the same costs.
The year 2018 marks a new step in the incentive given by the polish Government for R&D. The range of eligible costs for the R&D tax deduction has been extended and the level of tax deduction has been increased to 100% of the eligible costs, even to 150% for taxpayers having the Research and Development Center status (CBR).
As a result, a company can save 190 zlotys on each 1000 zlotys it spends for R&D (and even 285 zlotys in a case of R&D Centers).
The tax relief for research and development is a great source of financing for companies of all sizes and in all sectors.
The condition to benefit from this grant is to conduct tax-eligible research projects, which companies often do ... without knowing it.
The definition of research taken into account for the eligibility of works to the Polish system is, as in France, based on the Frascati Manual:
Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view (public or university research laboratories ...).
Applied research is original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific, practical aim or objective.
Experimental development is systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.
Research and experimental development (R&D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge.
The main challenge for a company wishing to use the research tax relief properly is to be able to analyze comprehensively and to valorize the creation of original technical know-how.
A technical know-how can be created in the R&D department, but also in design office, quality department, production workshops ...
Our experience allows to distinguish "core business" R&D projects, already well known and identified by companies, from peripheral R&D projects, usually ignored.
Categories of eligible costs covered by the R&D Tax Relief
Salaries and social security contributions of employees under employment contracts in proportion to their time devoted to an R&D activity,
Salaries and social security contributions of persons carrying out R&D activities on the basis of contracts for a specific task, in proportion to their time spent on an R&D activity,
Costs of purchasing materials and raw materials directly related to the R&D activity,
Costs of purchasing specialized R&D equipment other than fixed assets,
Costs of using (or purchasing) the equipment used only in R&D activity (excluding agreements with related entities) for a fee,
Costs of expert's opinions, advisory services or equivalent services, research results from scientific units,
Costs of obtaining and maintaining patents, protection rights for utility models, industrial design rights,
Depreciation write-offs on fixed assets and intangible assets used in R&D activities (excluding cars, buildings, real estate being in separate possession).
DZIESIĄTY|WRZEŚNIA brings to polish customers 10 years of experience in the identification and valorization of R&D projects.
• Identification of research projects;
• Calculation of the tax relief;
• Technical drafting of an Eligibility File gathering all the justifying elements;
• Bibliographic research: State of the art of the research projects;
• Negotiations with the administration;
• Adjustment and / or creation of monitoring tools;
• Accompaniment of the designated staff to secure the eligibility of research projects;
• Medium-term projection optimization.
Contact us to obtain an analysis of your eligibility for the research tax relief.