Poland: R&D tax deduction in Poland

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Poland: R&D tax deduction in Poland

intl-updates-small.jpg
dziedzic.jpg
tylenda.jpg

Monika Marta Dziedzic

Aleksandra Tylenda

The new easier application and higher amount of tax relief for research and development (R&D) is now available under the Polish tax system.

R&D is defined as a creative activity including scientific studies and development works. The R&D qualifying for tax deduction includes, not only traditional scientific studies, but also development works such as combining existing knowledge to improve manufacturing processes, increase efficiency or improve the quality of products or services, etc. Therefore, R&D relief is potentially available to all businesses that carry out improvements – it is not required to have a specific R&D department or operate in a special business sector.

The R&D tax relief provides a reduction of the corporate or personal profits by:

  • 50% of wages and social contributions of employees employed to carry out R&D (irrespective of the size of the company); and

  • 50% for small and medium size enterprises or 30% for larger ones, in the case of:

  • purchase of commodities and raw materials;

  • purchase of expert opinions, research and similar activities;

  • payments for use of research equipment;

  • depreciation of intangible assets and fixed assets, excluding passenger cars, buildings and constructions; and

  • payments for patent rights, protection rights for utility model, registration of the industrial design. However, for large companies the deduction of this last category of costs is not available.

R&D tax relief is available if :

  • The R&D incurred qualified costs that are not refundable;

  • The entrepreneur does not carry out business activity within a special economic zone in a given tax year;

  • R&D costs are recorded separately in tax accounting books; and

  • The entrepreneur concluded an agreement with a scientific unit (this requirement refers only to expenditure incurred on basic research defined as original research, experimental or theoretical works, undertaken mainly to acquire new knowledge without any direct commercial application or use in view).

R&D deductions are made in the tax return for the tax year in which the qualified R&D costs were incurred. If the taxpayer suffers a tax loss or if the taxpayer's income is lower than the amount of allowed deduction, the deductions – in the entire amount or in the remaining part – can be made in the tax returns for six tax years following the year in which the taxpayer incurred the qualified costs. Taxpayers starting their business activity and not able to make the deduction (due to low income or lack of income) may claim a cash incentive if certain requirements are met.

Monika Marta Dziedzic (monika.dziedzic@mddp.pl) and Aleksandra Tylenda (aleksandra.tylenda@mddp.pl)

MDDP, Poland

Tel: +48 22 322 68 88

Website: www.mddp.pl

more across site & shared bottom lb ros

More from across our site

Despite garnering significant revenues from multinationals, Italy’s digital services tax presents pressing double taxation issues, say Stefano Simontacchi and Francesco Saverio Scandone of BonelliErede
ITR’s research shows that in-house tax counsel in Asia also feel underserved by their advisers’ international networks
World Tax global head of research Jon Moore tells ITR how his team spots standout submissions, and gives early statistical insights into this year’s entries
Australia’s conservative opposition will repeal controversial tax agent reporting rules if elected in the country’s May general election
Shapley would be the fourth person to hold the job this year; in other news, UK tax advisory firm MHA raised fewer funds than expected from its London IPO
The US needs to be involved in pillar one for there to be more international acceptance of the project, Michael Masciangelo says
The UK regulator is investigating EY’s auditing of the national postal service as it relates to the high-profile Horizon scandal, which saw hundreds wrongfully convicted
The directive will extend cooperation and information exchange around pillar two, according to the Council of the EU
Audit engagement partner Christopher Voogd has also been hit with a £32,500 charge over the firm’s work with Stirling Water Seafield Finance
China’s largest overhaul of its tax administration system in 24 years, featuring enhanced enforcement powers, is underway, says Abe Zhao of FenXun Partners
Gift this article