Additional bonus for R&D investments
When taking advantage of the allowance for innovative employees, it is worth monitoring the level of its utilisation, commissions Łukasz Łebski, tax advisor, manager at Thedy & Partners in an interview with Rzeczpospolita.
This year, companies investing in research and development will for the first time gain an additional tax bonus. What does it consist in?
The relief for innovative employees is a kind of ‘extension’ of the classic R&D relief, known and used for years in Polish tax law. This new relief can be used by income taxpayers, who are PIT payers, who carry out R&D activities and, due to a loss or a tax base that is too low, could not fully deduct qualified costs under the R&D relief. In such a situation, the taxpayer may reduce the amount of the employees’ income tax advances to be allocated to the account of the tax office by the product of the amount not deducted and the tax rate applicable to that taxpayer in the given tax year.
For example, the excess of qualified costs for the purposes of the R&D relief in the amount of PLN 100 000, as a rule, translates into a PLN 19 000 relief, which reduces PIT advances for selected innovative employees.
The innovative employees’ relief thus provides an alternative for the disposal of unused qualifying costs under the R&D relief. Until now, excess qualified costs could only be disposed of in the following six tax years. From 2022 onwards, this excess can be used to reduce the PIT advances of innovative employees.
In the interview, we also discuss, among other things: who can benefit from the preferences, what to pay attention to, what may cause disputes.
The entire interview can be read in Rzeczpospolita of 4 July 2024, page F2