On January 1, 2018 the amendment of the regulations concerning the relief for research and development activity came into force. It gives entrepreneurs even wider possibilities of using this relatively new tool in business activity. R&D relief is currently the most attractive form of supporting research and development activity on the Polish market. This simple mechanism allows taxpayers to deduct from the tax base the costs incurred on R&D activity, the so-called eligible costs.
Research and development activity should be understood as creative activity covering scientific research or development works, undertaken in a systematic manner in order to increase knowledge resources and use knowledge resources to create new applications. In practice, any company which improves its technologies (including production technologies), products and services or creates new ones from scratch may fulfil the conditions for eligible R&D activities.
R&D relief is not the only advantageous tax instrument given into the hands of entrepreneurs. Eligible R&D activities should also be analysed in terms of the possibility to take advantage of the additional Innovation Box / IP Box relief (5% CIT on revenues from rights related to R&D activities), as well as the introduction of increased costs of obtaining revenue from creative activities.
The possibility to take advantage of the relief applies to all entrepreneurs regardless of the size of the enterprise and the industry in which they operate. The condition for taking advantage of the relief is only to conduct development activities (no scientific research, the status of R&D centre or cooperation with scientific entities is required). It is also possible to deduct the costs of projects started in previous years.
The right to take advantage of the R&D relief is available regardless of the final result of the research. The R&D relief is also available to entrepreneurs operating in SEZ within the scope not covered by the income tax exemption.
Eligible costs are as follows:
Limits on the deduction of eligible costs:
Our experts offer the following services for research and development activities:
The mapping of R&D processes, individually tailored to your needs, for the purpose of: