Prototype tax relief

Have you ever heard about the special type of incentive for a prototype and support for an innovative employee? Do you run a company where you use innovative machines or hire innovative employees? If you want to find out what kind of reliefs you are entitled to, be sure to read this post!

The first of the reliefs introduced as a result of the Polski Ład is the relief for the prototype. The prototype relief is based on French solutions. It is intended for all entities conducting business activity, which in the process of R&D works, created a new product and then introduced it to the market.

How much is the discount for the prototype?

The tax relief granted to entrepreneurs will make it possible to deduct from the tax base 30% of the sum of the costs of trial production of a new product and its introduction to a new market. The prerequisite is that the amount of the deduction should not exceed 10% in a given tax year.

The costs of trial production of a new product will include:

  • expenses for the purchase or production of brand new fixed assets necessary to start trial production,
  • expenditure on improvement incurred to bring the fixed asset into trial production,
  • expenditure on the purchase of materials and raw materials purchased solely for the purpose of trial production.

Another relief is the relief for supporting innovative employees and it is an extension of the existing R&D relief. It gives the possibility of deducting a certain amount in connection with the employment of a given category of people.

This relief is basically a reduction in the amount of advances that are collected by the employer and transferred to the account of the competent tax office.

Perhaps, while reading this post, you are wondering how to take advantage of such a relief?

Pursuant to the new regulations, taxpayers with R&D tax relief not settled in the previous year will be able to deduct from advances for personal income tax charged on the income (income) of natural persons for:

  • business relationship, employment relationship, homework, cooperative employment relationship,
  • performance of services on the basis of a mandate contract or a specific specific contract,
  • copyright.

The prerequisite for the deduction will be that a given employee devotes at least 50% of the total working time in a given month to the implementation of activities intended for R&D works.

If you are wondering if you can take advantage of the above discounts, but you are not sure if you meet the specific requirements – contact us!

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