The expansion tax relief is valid from 2022 and allows for a reduction in costs allocated to marketing, advertising or product promotion. Eligible costs of up to PLN 1 million may be covered, which, for a CIT taxpayer, represents a saving of PLN 190 000 per year.
This preference is linked to the introduction of new products and can therefore be used complementarily with other tax mechanisms:
- R&D relief and prototype relief – when a company has developed and produces a new product followed by its introduction to trade;
- relief for robotisation – if a company plans to purchase an industrial robot to produce more, which will translate into increased revenues.
Conditions to benefit from expansion tax relief
The expansion tax relief applies to companies implementing new products on the local market or planning to expand abroad with existing products (services are excluded). It is available to all taxpayers, regardless of the sector of operation or size of company, who allocate funds towards marketing and promotion.
In addition, they must meet one of three revenue conditions:
- increase revenue from product sales year-on-year
- achieve revenue from the sale of new products
- generate revenue on the sale of products not previously offered in a given country.
Importantly, only income that is taxable in Poland should be taken into account when accounting for the tax relief. There is no minimum increase requirement; so even if the income increases by only PLN 1, the taxpayer is eligible to benefit from the expansion tax relief.
List of eligible costs for expansion tax relief
Costs of promotional and information activities
- Purchase of advertising space
- Website development
- Preparing press publications
- Brochures, information catalogues and product leaflets
Trade fair participation costs
- Organisation of exhibition space
- Cost of employee airline tickets
- Accommodation and employee expenses
Product preparation costs
- Adaptation of product packaging to customer requirements
Development costs
- Preparation of documentation to enable the sale of products, in particular certification of goods and trademark registration
- Preparation of documentation necessary for tenders and also to submit bids to third parties
Expansion tax relief – Ayming support
- Training on eligibility for tax relief (conditions, rules, guidelines, etc.)
- Verifying whether a taxpayer qualifies for tax relief
- Identification of eligible costs
- Preparation of calculations necessary for settlement
Substantive support during the entire tax relief settlement process, including client representation before the tax authorities
