On 15 June, within public pre-consultations, the proposal of regulations extending existing tax reliefs related to R&D activities was published on the MoF website. Unfortunately, the assumptions on the robotization relief have not yet been revealed.

The new innovation package (in the version as proposed so far) refers only to part of tax reliefs planned to be introduced (i.e., a relief for a prototype, a relief for innovative employees, the possibility to use the IP Box and R&D relief simultaneously for the same income). Additionally, what has not been announced before, the proposed regulations extend the application of the already functioning R&D relief. Importantly, the currently proposed solutions do not make the application of the abovementioned incentives dependent on the size of taxpayer’s enterprise.

Below we present a short summary of the key proposals of the new innovation package.

Type of relief Description of relief Key changes/assumptions
Extension of
R&D relief		 This relief has been in place since 2016 and enables the settlement of tax costs incurred by the taxpayer for R&D activities.
  • Taxpayers will be able to additionally deduct 200% of expenses incurred on the remuneration of employees and civil law contractors involved in R&D (so far, additional 100% can be deducted).
  • R&D centers will be able to settle 200% of all eligible costs incurred for R&D activities (so far, 150% of the majority of eligible costs can be deducted). This will also apply to the costs of obtaining and maintaining patent, protection right for utility model, and the right to register industrial design (currently R&D centers bearing large enterprise status can deduct 100% of such costs only).

 

 

 

 
Introducing
relief for the prototype		 Possibility to deduct expenses incurred for trial production of a new product or its introduction to the market from the tax base.
  • The value of the deduction cannot exceed 30% of expenses incurred, however, no more than 10% of income.
  • The relief will not apply to services.
  • Trial production will be understood as the stage of technological start-up that does not require further design and construction or engineering works, the purpose of which is to perform trials and tests before launching the production of a new product.
  • Introducing a new product to the market is understood solely as activities undertaken in order to obtain necessary documentation to obtain certificates and permits enabling the sale of the product.
  • As part of the new relief, it will be possible to deduct, i.a., the costs of fixed assets used to start the production, their improvements, costs of materials, costs of research and expertise, costs of product life cycle research and environmental technology verification (ETV) system, as well as the costs of preparing various official documentation etc.
  • Necessity of conducting prior R&D activity.
  • Restrictions if the company operates in a Special Economic Zone (SEZ).
Introducing tax relief for innovative employees Possibility to deduct the unsettled R&D relief as part of advance PIT payments from the salaries of employees directly involved in R&D works.
  • Applies to R&D relief which has not been settled due to the taxpayer's loss or income that does not allow for full settlement of R&D costs.
  • Employee’s involvement in R&D works, from whose advance payments for PIT relief will be settled, will have to reach at least 50% level.
  • No deduction limits.
Introducing the possibility of simultaneous use of IP BOX and R&D relief The possibility to settle R&D relief within income benefitting from IP BOX.
  • Under the current legal framework, the provisions do not allow such settlement within the same source of income (only for different income categories).

 

According to information provided, the new solutions should enter into force beginning from 2022.

The proposed innovation package does not yet include the wording of provisions related to the relief for robotization (automation). Nevertheless, general information from the MoF indicates that it is still planned to be introduced.