Entrepreneurs can deduct expenses incurred for research and development (R&D). This allows for real financial benefits for all entrepreneurs conducting research activities, regardless of the industry.
In essence, the relief allows deduct from the tax base part of the company’s costs for research and development. The condition for using it are:
- conducting research and development activities
- incurring eligible costs, and their separation in the records
- costs have not been returned in any form (eg subsidies)
In the coming years, this benefit will be systematically increased and its level can reach as much as 19%.
From 2018, entities with the status of a Research and Development Center (CBR) can benefit from specific regulations. (28.5% of eligible costs for the Research and Development Center).
More about the relief for research and development can be found on the website of the Ministry of Economy.
Special Economic Zone (SEZ) is an administratively separate part of Polish territory, allocated for running of businesses on preferential terms. The main benefit of conducting business activity within the Zone is the tax exemption granted in the form of CIT or PIT. Depending on the location of the project, the tax relief in the Pomeranian Region can be granted for a definite period of time- 12-15 years. In case of currently biding Special Economic Zone (SEZ) permits already issued to investors, the SEZ shall remain in force until 2026.
The act of May 10th 2018 amends the instruments of CIT and PIT tax exemptions. No matter the ownership of the property (public or private), the tax relief is now available across the entire country for investors carrying out new investment projects. In order to be eligible for the state aid, investors have to meet quantitative and qualitative criteria. Quantitative criteria (minimum amount of eligible costs) depend on the unemployment rate in the county (poviat) in which the investment shall be carried out and the company size. Entrepreneurs representing business services sector and those who plan R&D activities shall be granted preferential terms. Qualitative criteria include: creation of specialized jobs, the research and development component, cooperation with academic and research centers and with industry schools, low negative impact on environment.
The maximum value of state aid depends on the company size. Within the Pomeranian Region, aid intensity (percentage of costs eligible for regional aid) is 35%, 45%, 55% for large, medium and small entrepreneurs respectively.
The decision regarding support is issued on behalf of the minister competent for the economy, by the management of Special Economic Zones. The decision determines the period of its validity, the subject of economic activity, as well as the conditions.
There are two special economic zones within the Pomeranian Region – the Pomeranian Special Economic Zone and Slupsk Special Economic Zone. The zones have been established to enable investment conditions customised to the individual needs of investors.
Relocation grant “Live more. Pomerania”
Agencja Rozwoju Pomorza S.A. has announced the call for proposals for the selection of entrepreneurs from the SME sector that intend to start operations in the Pomeranian Voivodeship. Selected companies will receive a financial grant that will be awarded in connection with the relocation of new employees from outside the region.
The support is granted as part of the “Invest in Pomerania 2020” project.
Detailed information on the selection criteria is available below.