Incentives for investors - summary

New research & development relief in 2018

The bill on amendment of some acts for the purposes of improvement of the legal environment of innovative activity, signed by the President on 24 November 2017, allows the entrepreneurs running innovative activity in the basic scope or after obtaining of the status of a research centre for deduction of tax-deductible costs incurred on the research & development activity, referred to as ‘eligible costs’, from the tax calculation base. The currently existing relatively low rate of deduction of eligible R&D costs, amounting to 50% and 30% (depending of the type and size of the enterprise), was only a preview of the benefits that we will be able to achieve in 2018. Due to the new act, the rates of deductions of all R&D eligible costs from the taxation base are to increase up to 100% and in case of the entrepreneurs having the status of a research centre - to 150%.  

The full catalogue of the eligible costs is found in the link to the full version of the article:

http://jpweber.com/assets/Articles/JPW-170613-Tax-relief-for-Research-and-Development-benefits-for-entrepreneurs-EN.pdf

Announcement of a bill - the Polish Investment Zone

The bill is only in the phase of social consultations which may affect the time of its implementation. The announced bill will provide the investors with a revolutionary investment tool in the form of the planned Polish Investment Zone. The prepared provisions mean expansion of the area of the special economic zones from 14 locations up to 312 thousand km2 - i.e. the area covering the entire territory of the country, without any exceptions. Apart from the aforementioned changes relating to expansion of the area, on which tax preferences will apply, also the term of applicable support of the programme for the investors will change. In comparison with other countries, the Special Economic Zone instrument is less attractive, taking into account its validity period (9 years of exemption from income tax in Poland). The legislator intends to introduce a solution determining the term of the support not being shorter than 10 years and not being longer than 15 years and additionally, in case of entities operating on the area of the current Special Economic Zone, the decision on support of the new investment is issued for the period of 15 years. 

Moreover, specialised management companies will be established, which thanks to their knowledge will be able to assist in making of decisions in an effective manner. At the same time, these companies will perform the role of the main contact in the given region - the individual poviats will be served by the indicated management companies. Unification of the scope of responsibility and service will facilitate operation of the investors and will allow for shortening of the time of waiting for the administrative decision. The bill develops also new criteria for obtaining of the support determined above. Tax preferences will depend on three basic and at the same time clear and legible issues. 

The full classification catalogue is found in the link to the full version of the article: Polish Investment Zone

 

Download PDF