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Poland: Double deductions for R&D expenses become possible


From January 1 2018, research and development (R&D) expenses may be deducted twice for tax purposes in Poland.

Besides many changes that, from January 1 2018, will significantly increase the income tax cost of Polish companies, there is one which may help to reduce the burden. It is the R&D tax allowance.

From January 1 2018, companies will be allowed, in addition to the regular deduction of such cost, to deduct them once again from a taxable basis, so there is an increase of the limit of deduction to 100% of eligible costs. There is no other limit for the R&D allowance.

It has been clarified that, in the case of R&D costs of employees, the eligible costs are salaries and social security contributions paid with respect to the employment relationship, in a part that time which an employee spends on R&D activity relates to the total working time of the month.

The catalogue of eligible R&D human work costs was extended to cover not only pure labour employment but also fees under specified task contracts and mandate contract, including related social security contributions, in a part that time which a contractor spends on R&D activity relates to the total working time of the month.

Also, the catalogue of eligible tangible R&D expenses was extended to cover the purchase of specialist equipment, in particular vessels and laboratory equipment and measuring devices that are not fixed assets.

However, with respect to eligible cost being expert opinions, it was clarified that only expert opinions, consultancy services and equivalent services, provided or performed on the basis of a contract with a scientific unit, as well as the acquisition of research results from such an entity, for the purposes of conducted R&D activities will qualify for the allowance.

The most expected change allowing the use of R&D tax relief for taxpayers conducting business on the basis of a permit in the special economic zone (SEZ) with respect to eligible costs that are not included in the calculation of the tax exempt income based on the SEZ permit was eventually introduced.

The R&D allowance can therefore be a useful and easy remedy to the increase of income taxation just introduced to Polish tax system.


Monika Marta Dziedzic (

MDDP, Poland

Tel: +48 (22) 322 68 88


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