POLAND: A new tax relief for robots is to be introduced

Tax return for robots to be introduced in Poland

The Ministry of Finance of Poland wants entrepreneurs to be able to take advantage of the new robot’s relief by submitting a tax return for robots for 2021. Details of the new tax preferences are to be introduced soon.

Deduction of robots relief 50%

The published assumptions indicate that the tax relief for robots will allow to deduct 50% of eligible costs included in the closed catalog from the income. Entrepreneurs will benefit from the relief by completing the appropriate appendix to the CIT declaration. The proposed mechanism, as well as the R&D tax relief introduced earlier, will allow for the reduction of the final amount of tax for the tax year by additional settlement of the expenses already recognized in the tax result. The real benefit will therefore amount to about 10% of the expenses incurred.

Purchases that are considered eligible

Eligible costs are to be expenses for the purchase of the machine and software to automate operations, as well as expenses for the purchase of all necessary elements, such as, for example, drivers, rotators, tracks, connectors, tools, and health and safety devices. Probably the exemplary costs that allow for relief will be expenses for the purchase of robots themselves, 3D printing devices, software used for design, production or processing, integration of production devices, sensors, augmented and virtual reality devices.

The eligible costs will also include the costs of employee training in the use of new, automated systems. Importantly, it will be possible to use the new tax preference “for the purchase of robots” and the existing R&D (research and development) and IP BOX reliefs at the same time.

Advantage to taxation in 2022

As the relief is to be introduced from 2021, entrepreneurs will be able to take advantage of the deductions only in 2022. At the same time, it will be possible to deduct expenses incurred from the beginning of 2021 to the end of 2025 as part of the relief.

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*This article is for general information purposes only and does not constitute a legal advice.