Allowances and subsidies help enterprises reduce the costs of investment and development activities. Implementation of a strategy for use of allowances and subsidies, proper drafting of applications, knowledge of substantive and formal criteria, as well as experience in communication and negotiations with institutions can be decisive for effective acquisition of support.
Operations in a competitive market mean that companies must undertake development activities, invest in innovation, implement digital processes, train staff, and adapt sustainable solutions. If enterprises can take advantage of the opportunities offered by the available forms of support for these types of undertakings, such as tax allowances and subsidies, they are motivated to expand their business and significantly increase their performance.
The instruments available in Poland in the area of tax regulations to support development include tax relief for research and development activities (R&D relief), increased tax-deductible costs for employees engaging in creative activities (50% tax-deductible expenses), preferential taxation of income from qualified intellectual property rights (IP Box), and tax exemption for implementation of new investments (special economic zones and the Polish Investment Zone). Alongside these, Polish companies can draw on a pool of some EUR 76 billion in European funds for 2021–2027. A significant proportion of this budget is targeted to enterprises incurring outlays in R&D projects, implementing innovations or R&D infrastructure, increasing their competitive capabilities, engaging in industrial transformation, digitalisation, internationalisation and green technologies, as well as improving staff competences. As in previous financial frameworks, these funds will be available under national and regional programmes.
In addition, starting from the beginning of 2022, further support instruments are being implemented through tax instruments, such as tax relief for robotics and prototypes, growth-supporting relief, and tax relief for innovative employees.
KPMG in Poland has an Innovation, Reliefs and Incentives Team responsible for providing services and advice to enterprises interested in leveraging the available support instruments. Our team ensures a comprehensive approach to the client’s business, high standards of services, as well as expertise demonstrated in a number of successes achieved by our clients who have leveraged growth opportunities through tax relief and subsidies.
Support offered by our Innovation, Reliefs and Incentives Team includes:
- Review of development activities and proposed investment projects, mapping them against the possibility of obtaining relief and subsidies
- Assistance in developing project concepts or areas of activity to maximise the chances of obtaining relief and subsidies
- Assistance in selecting the location, determining the type of investment, and obtaining tax exemption based on a decision to support a project carried out within the Polish Investment Zone
- Support to ensure correct accounting for relief and subsidies received.