R&D Tax Relief
How can you benefit from the R&D Tax Relief? Reduce your income Tax through an extra deduction of 100% of the R&D expenditure on top of the regular accounting deduction.
How can you benefit from the R&D Tax Relief? Reduce your income Tax through an extra deduction of 100% of the R&D expenditure on top of the regular accounting deduction.
The challenge of innovation plays a key role in the growth of a modern, knowledge-based economy. Poland has taken significant steps towards increasing its quality and quantity of Research and Development (R&D) since 2016 with the objective of encouraging R&D activity.
R&D Tax Relief allows companies to reduce their tax bill through an extra deduction of 100% of the R&D expenditure on top of the regular accounting deduction and in the case of remuneration of employees involved in R&D activities – the relief deduction amounts 200%.
This means that 19% of the R&D qualifying expenses of any Polish company is funded via the Polish R&D Tax Relief (as the applicable corporate income tax in Poland is 19%). Companies therefore benefit from a significant saving, e.g., companies spending 100,000 PLN in R&D qualifying expenditure would benefit from a saving of 19,000 PLN.
Currently, to the R&D tax relief has been added new reliefs include activities related to trial production and launching a new product on the market (the relief is 30% of the costs) as well as robotization of processes in the enterprise (50% of the costs).
In order to benefit from the R&D Tax Relief, companies need to demonstrate that they conduct R&D activities , document the scope thereof and why they can be considered as R&D activities, and identify qualified costs incurred in relation to the R&D activities according to the Act on corporate income tax.
Leyton combines scientific and legal expertise to help companies claim the R&D Tax Relief they are entitled to on the basis of their R&D activities through a methodology that has been tested and validated through thousands of projects successfully realized for our clients all across the world. We assist companies in qualifying the eligibility of their projects as R&D based on commonly accepted standards and legal definition to make sure that any and all R&D qualifying expenditure are taken into account. And this all on a success fee basis, as we believe that you should not have to pay in the absence of any benefit.
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