On July 26, 2021, the Ministry of Finance announced the commencement of consultations on the "Polish Deal" project, which is to introduce, among others, completely new income tax reliefs, i.e. relief for innovative employees, prototypes and robotization, and also will allow to increase the deduction limits in R&D tax relief. The project assumes also the possibility of simultaneous utilization of IP Box and R&D tax relief.
A robotization relief
The published project provides the possibility of deducting 50% of the tax-deductible costs spent on robotization. The costs spend on robotization are connected with the purchase costs of the brand new:
- industrial robots,
- peripheral machines and devices,
- machines and devices ensuring workplace safety and ergonomics,
- machines for remote management and diagnosing of industrial robots,
- devices for human-machine interaction for industrial robots.
The deduction is also to cover the costs incurred for the purchase of peripheral devices, as well as intangible assets related to the robotization in 2022-2026.
A relief for innovative employees
The entities conducting R&D activity and PIT payers would obtain a right to deduct eligible costs related to R&D activity, not deducted in the previous year due to a loss or an insufficient income, from advances for income tax on the remuneration of employees involved in research and development works.
The projected deduction will be granted to those who receive a remuneration under an employment contract or civil law contracts as well as copyrights, and it will be limited to the employees directly involved in conducting the R&D activities. The direct involvement should be understood as a participation in R&D activities for at least 50% of the working time in a given month by the employee.
A prototype relief
The planned relief is to enable an additional deduction from the tax base in the annual tax return of 30% of the costs incurred by taxpayers conducting R&D activity for:
- a trial production of a new product understood as the stage of technological launch of production, which is aimed at testing and trying out a new product in practice before starting the production,
- launching a new product on the market, meaning the activities aimed at meeting all necessary, formal requirements for its introduction (obtaining certificates and permits) before incorporating the product to the sales.
The deduction is to be limited to selected cost categories, including, among others, acquisition of new fixed assets or their improvement, consumption, as well as the costs of research, expertises and certification.
Similarly to the R&D tax relief, the prototype relief allows for the deduction of expenses actually incurred in a given tax year, at the same time not refunded to the taxpayer in any form. The deductible amounts cannot be previously deducted from the tax base.
Increased limits in R&D tax relief
According to the project, from 2022, the deduction limits for research and development centers will increase to 200%, and for other entrepreneurs - to 200% in regards to the employees remunerations and costs of the civil law contracts.
The simultaneous use of IP Box and R&D relief
The solution is to enable the deduction of the R&D tax relief from an income generated from the qualified intellectual property rights, and it is to be limited to the costs incurred for R&D works directly related to that right from which the taxpayer obtained income at the taxation rate of 5%.
A project status
The Ministry has announced a draft legislation. The proposed changes are planned to be introduced in 2022.
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