The President has signed the Law of 9 November 2017 regarding important amendments to the tax relief regime for research and development on 24th November 2017. It will be effective as of 1 January 2018. This significantly improves the system introduced in 2016.
Key changes are:
- tax deduction level will increase to 100% of eligible R&D expenditure and 30% of other qualifying expenses, 50% for small and medium-sized enterprises (SMEs);
- 150% deductions for eligible R&D expenditures of research and development centers;
- simplification of accounting for staff partially allocated to R&D activities;
- Amortization costs related to buildings and structures used for R&D up to 10% of the gross income of the taxpayer;
- 50% for micro, small and medium-sized companies that are considered R&D centers. Previously, such expenses were excluded.
The new law also includes a number of other financial support solutions for R&D activities, including the possibility for venture capital firms to acquire R&D-related shares by 2023 under a special tax exemption (which will be a subsequent CIT -free disposition of shares).
