Poland offers a wide range of investment incentives. As an investor, you can take advantage of government grants, tax relief and exemptions. Below we present the most important of them.
Tax relief for R&D
This relief is intended for entrepreneurs conducting R&D activities in any industry. It allows you to deduct 100% of eligible costs from the tax base (applies to CIT and PIT). You may use it if you systematically conduct creative activities, including scientific research (fundamental, applied, industrial) and development work, the aim of which is to acquire new knowledge and use it to invent new solutions.
100% of expenditures R&D activities may be included in tax-deductible costs and deducted from revenue. Again, these expenses may be deducted from the tax base. If the company has the status of a R&D center, deductions from the tax base may amount to up to 150% of expenses.
IP Box is a tax incentive for those investing in innovation, and a natural complement to the R&D relief. It consists in taxing at a preferential 5% CIT/PIT rate the income that the taxpayer obtains from the commercialization of eligible intellectual property rights.
The preferential CIT or PIT tax may be used by entrepreneurs who earn on intellectual property rights obtained from R&D activities or from R&D services purchased from other entities, but patented by the entrepreneurs.
Relief for companies that implement innovations and expand their sales markets
Starting from 2022, an entrepreneur who commercializes the results of R&D work and earns on them income eligible under the IP Box regulations, and incurs costs eligible for the R&D relief, he may apply both relief simultaneously (the relief for companies that implement innovations and expand sales markets and the R&D relief). In the case of eligible costs related to the remuneration of employees employed for R&D activities, the amount of deduction of eligible costs is increased to 200% for all taxpayers.
Real estate tax relief and exemptions
Relief and exemptions from real estate tax are used by some municipalities (as part of public aid). The following are subject to taxation: land, buildings or parts thereof and structures or parts thereof related to running a business. The maximum annual tax rate for entrepreneurs is 2% of the value of the property. The application of the relief and/or exemption usually depends on the creation of new jobs in the municipality. The decision requires an appropriate resolution to be adopted by the municipal council.
Take advantage of tax relief for your company