Expansion tax relief

The main purpose of the allowance is to be able to take an additional deduction for the value of expenses that are related to the increase of income derived from the sale of products. The design of the relief makes it a great solution especially for small entities taking the risk of expanding into foreign markets (whether starting or expanding an existing business of selling products abroad), but developing sales in the domestic market also qualifies for the relief.

The product can be a thing already produced by the taxpayer, as well as things not yet offered by the taxpayer. In the case of new products, the expansion allowance can be in addition to the R&D and prototype allowances – once a new product is launched, expenses for generating revenue from its sale can be included in the allowance.

Expenses for expansion may be deductible twice – as a deductible expense and as a deduction, with the deduction capped at PLN 1,000,000 in a tax year.

The relief is aimed at taxpayers who, following the incurring of certain expenses (including those related to participation in fairs where products are presented, promotional activities, as well as the preparation of the necessary documentation), have achieved or revenues from the sale of products. They may deduct such costs from the tax base if, after taking the deduction, they show a corresponding increase in revenue from the sale of products over a period of 2 consecutive tax years, starting from the year in which the costs of increasing such revenue were incurred (the deduction was made).

Costs incurred to increase revenue from the sale of products that will be eligible for relief are considered such costs as long as they can be qualified as:

promotional and informational activities, including the purchase of advertising space, preparation of a website, press publications, brochures, catalogs or flyers, regarding products;
packaging customization according to the contractor’s requirements;
preparation of documentation for the sale of products, in particular, certification of goods and registration of trademarks;
preparation of the documentation necessary for bidding, including submission of bids to other parties.

The main purpose of the tax relief for expansion is to allow for an additional deduction of expenses related to increasing revenues from sales of products. The design of the relief makes it a great solution, especially for small entities taking on the risk associated with expanding into foreign markets (both for those starting and developing their existing business related to selling products abroad), but also for expanding sales in the domestic market. The product can be something already manufactured by the taxpayer, as well as something not previously offered by the taxpayer. In the case of new products, the tax relief for expansion can be a complement to the R&D tax credit and the tax relief for prototypes – after introducing the new product to the market, expenses to generate revenue from its sale can be included in the relief. Expenses for expansion can be deducted twice – as a cost of revenue and within the relief, with the deduction being limited to PLN 1,000,000 per tax year.

The tax relief is aimed at taxpayers who, as a result of incurring certain expenses (including those related to participation in trade fairs where products are presented, promotional activities, and preparation of necessary documentation), have achieved or will achieve revenue from the sale of products. The costs incurred to increase revenue from the sale of products that may be eligible for the relief include:

participation in trade fairs, including costs related to the organization of exhibition space, purchase of plane tickets, accommodation, and meals for employees and the taxpayer;
promotional and informational activities, including the purchase of advertising space, preparation of websites, press publications, brochures, catalogs, or leaflets concerning products;
adaptation of packaging to the requirements of the contractor;
preparation of documentation for the sale of products, in particular certification of goods and registration of trademarks;
preparation of documentation necessary to participate in a tender, including the submission of offers to other entities.

EXPANSION TAX RELIEF

WHY TAKE ADVANTAGE OF EXPANSION TAX RELIEF

ADDITIONAL SAVINGS

REDUCED TAX

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WE WILL CHECK IF YOUR PROJECT

WE WILL PREPARE THE DOCUMENTS

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