Investment tax reliefs
Relief for an initial public offering (IPO)
Who can benefit?
Joint-stock companies that:
- Have Polish tax residence
- Are not listed on the Stock Exchange
- Intend to issue additional shares as part of an IPO, taking the company public before listing
What are the benefits?
The following can be deducted from your tax base:
- 150 % of the value of expenses directly related to the IPO
- 50 % of the value of advisory, legal and financial services purchased in connection with the IPO (up to a maximum of PLN 50,000 excluding VAT)
This means that each expense incurred in connection with the IPO, as well as expenses for the purchase of the aforementioned types of services, will reduce the company’s revenue by 150 % and 50 % of their value, respectively.
What conditions must be met?
- The company must operate as a joint-stock company with a Polish tax residence, and not yet be listed on the Warsaw Stock Exchange although have the intention to go public
- The company must incur expenses directly related to the IPO or the purchase of services related to the issue of shares
Expansion relief
Who can benefit?
Businesses that incur expenditure on marketing and promoting their products at home and abroad. The relief is intended to enable expansion through promotion at trade fairs, industry events, conferences, etc.
What are the benefits?
200 % of the value of expenditure incurred in increasing revenue from the sales of products can be deducted.
This can include products already manufactured as well as products not yet offered by the taxpayer or not offered in the country concerned.
* The maximum amount of the deduction in one tax year is one million zlotys. This means that the CIT can be PLN 190,000 less!
What expenses can be deducted?
Expenses related to increasing revenue from the sale of products, i.e. costs of:
- Participation in trade fairs (e.g. organisation, accommodation)
- Promotional activities
- Adapting packaging to the requirements of the counterparty
- Preparation of documentation for the sale of products (e.g. certification of goods, registration of trademarks)
- Tender documentation
What conditions do you have to meet?
- Operate a business and make investments to increase business revenue
- Within 2 consecutive tax years from the tax year in which the costs to increase the revenue from the sale of products are incurred:
- Increase the revenue from the sale of products in relation to the revenue from such sales established on the last day of the tax year preceding the year in which the costs are incurred, or
- Generate income from the sale of products not previously offered, or
- Generate revenue from the sale of products not previously offered in the relevant country
Polish Investment Zone (PSI)
Who can benefit?
Primarily industrial and specialised service companies, with the exception of industries producing alcohol, tobacco, explosives, steel, electricity, gas, etc. Companies operating throughout Poland, regardless of the size of their operations.
The support includes an exemption from CIT or PIT in connection with the implementation of new investments.
The relief applies to investments such as:
- Establishment of a new plant
- Increasing the production capacity of an existing plant
- Diversification of production
- Substantial change in the production process
What are the benefits?
An income tax exemption of up to 70% of the value of the investment made.
What conditions do you have to meet?
- Obtain a so-called support decision, which is issued at the request of the company and can be valid for a period of 10, 12 or 15 years
- Fulfil quantitative and qualitative criteria, i.e.:
- Quantitative criteria covering the minimum eligible costs of the new investment, depending on the location, type of investment and size of the enterprise
- Qualitative criteria covering an assessment of the investment in terms of its impact on economic and social development
Consolidation relief
Who can benefit?
Companies that acquire shares in a capital company that meets certain criteria relating to location, type of business and relationship to the taxpayer.
What are the benefits?
The relief allows you to reduce your tax base by eligible expenses related to the acquisition of shares. The maximum amount of the deduction in a given tax year is PLN 250,000.
The deduction is only available in the tax year in which the taxpayer acquires the shares and applies only to expenses incurred in that period.
What expenses can be deducted?
Eligible deductible expenses include:
- Legal services related to the acquisition of shares
- Taxes levied directly on the transaction
- Notarial fees, court fees and stamp duties
What conditions must be met?
- The company whose shares are being acquired must have its registered office or management board in Poland or in a country with which Poland has concluded a double taxation treaty
- The activity of the company must be identical with the activity of the taxpayer or be an auxiliary activity, excluding financial activities
- The company must have carried out its main activity for at least 24 months prior to the acquisition of the shares
- The company and the taxpayer must not have been related parties during the 24 months prior to the acquisition of the shares
- The entrepreneur must acquire shares representing at least 51 % of the voting rights in the company in a single transaction
Corporate Social Responsibility (CSR) relief
Who can benefit?
Businesses that support sport, culture, higher education and science.
What are the benefits?
An additional 150% of the value of expenses incurred in supporting sport, culture, higher education and science can be deducted from revenue.
This means that any expenditure you make for these purposes will reduce your revenue by 150% of the value of the expenditure.
* The amount of the deduction may not exceed the amount of income from non-agricultural economic activity in the tax year.
What expenses can be deducted?
Expenditure on the following is deductible:
- The purchase of sports equipment, the costs of organising or participating in sports competitions, the costs of using sports facilities for sports training, the financing of sports scholarships
- Sports events that are not mass events
- Cultural institutions listed in the register of cultural institutions, as well as the financing of cultural activities carried out by academies of fine arts and public schools of art
- Scholarships for students for academic or sporting achievements and academic scholarships for doctoral students, costs of fees related to employee studies, postgraduate studies and other forms of education, costs of remuneration of students during professional practice
What conditions must be met?
- Running a business that incurs expenditure to support so-called social activities, i.e. sport, culture, higher education and science
- Keeping detailed records of expenses incurred in support of social activities
