Tax relief on prototypes and robotization
August 23, 2022
The Polish Order has introduced several new tax reliefs and preferences aimed at supporting the development of taxpayers in the area of new technologies. The implementation of new automation solutions, e.g. prototypes or industrial robots, is unfortunately very expensive. Thanks to the new tax reliefs, taxpayers receive significant support in the development of innovation and robotization.
Prototypes tax relief
The prototype relief is designated to taxpayers who bear the costs of trial production and introduce new products to the market. As part of the relief, entrepreneurs may deduct an additional 30% of expenses from the tax base, but not more than 10% of their income in a given tax year.
This tax relief allows you to settle the costs related to the production of a new product or trial production up to a maximum of 130%. Importantly, this relief applies only to entities operating in the field of manufacturing products, it cannot be used by entrepreneurs who provide services.
What expenses can be deducted?
To make it easier for taxpayers to apply the relief, provisions of the PIT and CIT Act contain a detailed list of expenses that can be accounted for under this relief.
Expenses included in the cost of trial production:
- costs of purchasing or manufacturing machines necessary to start trial production of a new product,
- costs incurred for the improvement and adjustment of fixed assets to the start of trial production of a new product
- purchase costs of materials and raw materials incurred for the trial production of a new product.
Expenses related to the introduction of a new product to the market include, i.a.:
- costs incurred for the preparation of necessary documents to obtain a certificate and homologation,
- costs of obtaining permits for a new product that will enable the taxpayer to sell it
Entities which decide to take advantage of the prototype relief will settle it in the annual tax return. If the taxpayer incurs a loss or earns income in the amount lower than the amount of deduction, he can deduct – all or part – of the rest of expenses in tax returns for the next 6 years.
The legal basis of Art. 18ea of the Act of February 15, 1992 on corporate income tax, art. 26ga of the Act of July 26, 1991 on personal income tax.
Robotization tax relief
- It can be a tool that will help Polish companies to increase their productivity and competitiveness both on the Polish and international market.
- The new tax relief can be used by any taxpayer, regardless of the size or profile of activity, who buys and installs, for example, an industrial robot.
How does the robotization tax relief work?
As part of the robotization allowance, taxpayers have the right to deduct an additional 50% of the costs incurred for the modernization of production related to the introduction of an industrial robot. The deduction is limited to the amount of income earned by the taxpayer in a given tax year.
Importantly, as part of the relief, it is possible to settle only expenses indicated directly in the act. These are:
- cost of purchasing: new industrial robots, machines and devices similar to and functionally related to industrial robots, machines, devices whose functionality is related to industrial robots designed to ensure ergonomics and work safety, where human interaction with an industrial robot occurs. This applies in particular to controllers, sensors and relays that provide remote management as well as diagnosing and servicing industrial robots
- costs of acquiring intangible assets that are necessary for the proper operation of industrial robots and other fixed assets listed above;
- costs of training services related to the operation of industrial robots and other tangible or intangible fixed assets referred to above;
- fees stipulated in the lease agreement for industrial robots and other fixed assets indicated above.
As part of the relief, costs incurred in the years 2022 – 2026 can be settled.
Legal basis: art. 38eb of the Act of February 15, 1992. on corporate income tax, art. 52jb of the Act of July 26, 1991. on personal income tax.
Tags prototype tax relief, robotization tax relief, tax reliefs
