TAX RELIEFS

We help you with the following tax reliefs and exemptions:

R&D TAX RELIEF

The R&D allowance allows taxpayers to deduct expenses related to the performance of research and development work from the tax base. A preference can be introduced, irrespective of the size of the business, as long as the research and development activity is carried out. As part of the relief, a taxpayer may benefit from an additional deduction from the tax base in the amount of 100% of eligible costs, and in the case of taxpayers with the status of research and development centres, it can be up to 150% of eligible costs.

• We carry out an analysis of the applicability of R&D relief to each particular business and determine the anticipated tax benefits.
• We prepare a request for an individual tax interpretation of the relief.
• We prepare the remaining documentation and coordinate the process of relief implementation.
• We represent the taxpayer before the tax authorities in the event of possible disputes.
• We provide support in the ongoing and annual settlement of the reliefs together with the accountants of the NTAX accounting office.

IP-BOX TAX RELIEF

The tax on income from qualified intellectual property rights is a relief aimed at increasing the business development of innovative taxpayers. Once the IP-BOX relief is implemented, part of the taxpayer’s income can be taxed at a preferential tax rate (5%). The IP-BOX solution can be implemented for taxpayers taxed under the general rules and subject to the 19% rope tax. The exceptions are entrepreneurs taxed on lump-sum tax on registered income.

Tax on income from qualified intellectual property rights can also be an extension of the applied R&D relief (research and development relief), which is intended to give legal protection to profits from such work. A taxpayer is entitled to deduct qualifying R&D costs from the income from a qualifying intellectual property right if they have resulted in the creation, development or improvement of the qualifying right. This provides relief at each stage of the creation of a product or service, such as planning, testing of prototypes and the final sale of the developed solution.

IP-BOX can be introduced in sole proprietorships, partnerships and capital companies alike.

• We carry out an analysis of the possibility of applying IP BOX relief in a particular business and determine the anticipated tax benefits.
• We prepare an application for the issuance of an individual tax interpretation in respect of the reliefs.
• We prepare other documentation and coordinate the process of relief implementation.
• We represent the taxpayer before the tax authorities in the event of possible disputes.
• We provide support in the ongoing and annual settlements of the reliefs together with the accountants of the NTAX accounting office.

“ESTONIAN CIT” – FLAT-RATE TAX ON COMPANY INCOME

A flat-rate TAX on company income – “Estonian-CIT” is a solution for businesses that plan to reinvest the funds earned. The application of this alternative system of CIT taxation means that until the profit is distributed to the shareholders, the company will not be obliged to pay corporate income tax. In the case of a distribution of earned profit, the application of a preferential tax rate may prove more cost-effective than the double taxation of CIT and PIT.

Estonian CIT can be applied to both capital companies such as a limited liability company, a joint-stock company, a simple joint-stock company and partnerships: a limited partnership, and a limited joint-stock partnership.

In order to successfully apply the alternative system of CIT taxation, the taxpayer must meet certain conditions regarding, inter alia, the shareholding structure, the sources of income earned, the number of employees employed and the accounting standards applied.

The introduction of Estonian CIT in each case is worth being preceded by a consultation with a tax advisor and assessing whether the introduction of an alternative corporate taxation system is possible, safe and justified alike.

• We carry out an analysis of the possibility of using Estonian CIT in a specific business and determine the expected tax benefits.
• We prepare a proposal for the reorganization of the business model in several options.
• We implement the selected solution and cooperate with other experts, notaries and auditors.
• We provide support with ongoing and annual accounts together with the NTAX accountants.

WITHHOLDING TAX (WHT)

The firm’s team undertakes tax projects for domestic and foreign businesses, including the possibility of implementing tax credits and exemptions for individual entities.

Withholding Tax (WHT) is a concept covering lump-sum income taxes, on natural and legal persons, collected by payers with a residence, registered office, or foreign permanent establishment in the country where the income arises.

An important regime introduced by the legislator is the ‘pay and refund’ mechanism, which, in principle, resulted in the loss of the taxpayer’s ability to apply preferential taxation rules when cross-border payments exceed PLN 2 million in a tax year.

Obtaining or continuing a preference or a complete exemption from withholding tax is connected with drawing up or obtaining a number of formal documents, such as: a certificate of residence, taxpayer’s statements, or an opinion on the application of preferences from the Head of the Tax Office.

• We determine the correctness of withholding tax settlements, classify types of transactions and tax rates.
• We prepare applications for the non-collection of tax, application of reduced rates, as well as applications for tax refunds.
• We prepare tax returns together with the accountants of the accounting office NTAX.

OTHER TAX RELIEFS AND EXEMPTIONS

Amongst others, we advise on:

• innovative employees tax relief
• Polish Investment Zone tax exemption
• prototype relief