Research and development tax credit – what is it and who is eligible?

The research and development relief is one of the recently introduced tax reliefs, the introduction of which was dictated by an attempt to support entrepreneurs who want to search for and implement an innovative solution in their enterprise. However, the condition for the possibility of taking advantage of such a relief is conducting research and development activity, the very definition of which allows for a wide range of application of the relief. Currently, as a result of the implementation of the Polish Order, its attractiveness is increasing, so it is worth taking an interest in the possibility of using it in your own company.

Research and development (R&D) tax credit

However, the condition for the possibility of taking advantage of such a relief is conducting research and development activity, the very definition of which allows for a wide range of application of the relief. Currently, as a result of the implementation of the Polish Order, its attractiveness is increasing, so it is worth taking an interest in the possibility of using it in your own company.

WHEN CAN THE RESEARCH AND DEVELOPMENT TAX CREDIT BE APPLIED?

The basis for applying the CIT or PIT tax relief is conducting research and development activities or having the status of a Research and Development Centre. Also, when running your own service activity, you can apply the research and development relief, provided that the expenses relate to development works aimed at introducing a new service or changing the previously offered service in such a way that innovative elements will be used in it, which have not been used by the entrepreneur so far in this type of service. services offered. However, it is crucial to qualify your activity as research and development. According to the statutory definition, “this is a creative activity involving scientific research or development work, undertaken in a systematic manner in order to increase knowledge resources and use resources to create new applications”. Such activities are divided into development works and scientific research. Among enterprises whose main purpose is not scientific research, relief can most often be applied to development work, which is an additional element of their activity.

WHAT COSTS ARE DEDUCTIBLE UNDER THE RELIEF?

The Act on Personal Income Tax and Corporate Income Tax enumerates the costs that can be deducted as part of the research and development relief. Their amount was divided into enterprises conducting research and development activities or Research and Development Centres. Among the costs alone were:

– remuneration for work on the job;

– remuneration in connection with executed labor contracts, for employees working on development and research;

– expenses related to the use of consulting services, commissioning opinions, necessary expert opinions carried out for the purposes of research conducted by the enterprise,

– expenses related to the purchase of raw materials and materials that are needed for the conducted research or research and development activities;

– expenses resulting from the use of scientific and research equipment;

– depreciation allowances.

These are only some of the possible expenses that may be deductible under the relief. Each entrepreneur has individual needs and only after conducting research of his needs and goals is it possible to apply tax reliefs appropriately.

Author:

Maciej Szkutnik

Specialist in the field. Taxes

 

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