Relief for expansion

What’s going to change?

Polish New Deal introduces a new relief for so-called expansion. 

Taxpayers who incur costs to increase revenues from sales of products, will be allowed to deduct these costs from tax base up to the amount of income for a given year (other than from capital gains), but no more than PLN 1 million (c.a EUR 217k). 

Products shall be understood as things manufactured by the taxpayer – so the relief cannot be applied to increase in sales of services. 

In addition increased revenues from sales of products shall be understood as a sale of these products to non-related party. 

Another condition required to benefit from the relief is the increase of revenues from sales of products in the two consecutive years from the tax year in which the costs are incurred. 

What are the eligible costs?

Costs, which may be deducted include i.a. costs of participation in fairs, promotional and informative activities, adjustment of packaging to customer requirements, certification of goods or registration of trademarks and preparation of tender and offer documents.