How companies can access the tax exemption related to investment
in improvements of processes and products? This and many more questions have been discussed today in Gryfitlab in the GIP. Gryfitlab is the first Polish research and development facility dealing with acoustics, microclimate and fire testing, which has been operating in the GIP for a number of years.
A better location could hardly be found for discussing research and development. The free workshop was organized for Goleniów based companies by a consultancy company KPMG. The main speaker was Kiejsut Żagun, Director and Head
of Innovation, Grants and Incentives. The workshop started with an introduction
by Andrzej Szarycki, President of Board at Gryfitlab Sp. z o.o., to tell a story about
the operation of his company.
In the early 2016, the range of incentives for companies increased with R&D tax exemptions. Following the footsteps of several other countries, including Great Britain, Ireland and Australia, tax exemption was established for research
and development in Poland. It enables companies deducting R&D cost from the tax base. Works are in progress regarding the amendment of regulations to make
the exemption more attractive from 1st January 2018.
The goal of the Tuesday workshop was to present latest regulations and rules applicable to using the R&D allowance. The workshop also discussed current legal framework, amendments planned, and other instruments supporting R&D activity and infrastructure in companies. In a clear and practical manner, a KPMG expert explained the idea of the exemption, in particular requirements for companies
and potential risks.
The idea of the R&D exemption is to provide possibility of deducting R&D cost
from the tax base at the rate of 1.5 and 2, this and next year respectively.
A precondition to resort to the exemption is to run R&D and incur eligible cost
that needs to be separated in the accounting records. The exemption can be used
by every company and PIT or CIT payer, regardless the size of their business
and sector represented. There is no need to have separate R&D departments
or to meet project selection criteria. The exemption can be combined with grants, and the intention to resort to it does not have to be notified in advance.
The exemption includes cost of projects that have been successfully completed.