Today’s business world is characterised by rapid technological progress and fierce competition; keeping up with the constant changes is the condition of business development, or end even staying on the market. Only constant developing and improving products and services can give you a chance to gain competitive edge. Implementation of innovative solutions often requires enormous financial outlays. This barrier can be overcome by using tax allowance for research and development
R&D tax relief means effective tax reduction in companies focusing on innovation.
R&D tax relief is deducting part of the costs of research and development from the tax base, effectively reducing the amount of tax. It can be used by both PIT payers (taxed at a tax scale or using a 19% flat rate) as well as CIT payers. After the R&D tax relief regulations have been amended, this type of tax relief has become more accessible and the deduction limits have also increased, making this instrument very attractive for companies regardless of their size and the industry in which they operate (manufacturing, ITC, pharmaceuticals, insurance etc.)
The conditions for using this tax relief:
- conducting research and development (i.e. creative activity, including scientific research and development works, e.g. creating new or improved products or services or prototypes),
- incurring qualified costs and showing them separately in the accounting records to show that these cost have not been reimbursed in any form (e.g. any other subsidy)
- the taxpayer does not operate in the Special Economic Zone (SEZ).
The costs eligible for the R&D relief for small and medium enterprises include remuneration and premiums costs, materials and raw materials, paid hire of research equipment, external services, obtaining a patent, etc. A percentage of eligible costs is deductible – in 2018 you can recover 100% of incurred costs!
GLC helps businesses obtain subsidies for R&D
Included in our service is analysis and verification of the project, both in terms of its technological scope and the effectiveness of the planned implementation. Then, in cooperation with our Client, we proceed to draft an R&D subsidy application. We will also provide assistance with accounting for the subsidy.
The effectiveness of obtaining tax reliefs by innovative companies is confirmed by numbers
When applying for the allowance, GLC will support you with:
- project analysis – both in terms of its subject matter and tax-related, including determination of eligible costs and the assessment of the project profitability.
- support in establishing and cooperating with scientific organisations
- drafting application for subsidy
- monitoring the stages of the application and assistance in signing the contract and possible amendments to the contract
- settlement of the subsidy and preparation of reporting documentation for inspection