PROTOTYPE TAX RELIEF

- tax credit for the production of prototypes -

WHY TAKE ADVANTAGE OF THE PROTOTYPE RELIEF

ADDITIONAL DEDUCTIONS

Supplement the R&D tax credit with additional deductions

REDUCE TAXES

Reduce taxes by developing new products

WHAT WE WILL DO FOR YOU

LET'S CHECK THE CONDITIONS

We'll check if your project is eligible for prototype tax relief

WE WILL PREPARE THE DOCUMENTS

We will complete all necessary documents

WE WILL SUBMIT AN APPLICATION

If necessary, we will prepare and submit an application for an individual tax interpretation on your behalf

WE APPROACH EACH CASE INDIVIDUALLY

We will advise you on how to account for your project in the context of using the relief

WHO MAY BENEFIT FROM OUR SERVICES

The prototype tax relief is a new tax solution modeled on French solutions, but which differs from its counterpart in French law in particular in that its target is all entrepreneurs. It is intended for taxpayers who have produced a new product distinguished by its technical performance, usability and functionality, and reduces the costs incurred in the testing stage of such a product, as well as for bringing it to market. It is worth noting that the relief allows real financial benefits to all entrepreneurs incurring expenses in the development of new products, regardless of the industry in which they operate.

The relief consists of the possibility of deducting from the tax base an amount equal to 30% of the sum of the costs of trial production of a new product and the launch of a new product, but the amount of the deduction cannot exceed 10% of income in a tax year.

The cost of trial production of a new product will be considered if it may be qualified as:

  • the purchase price or production cost of new fixed assets necessary to launch trial production of a new product,
  • improvement expenditures incurred to adapt a fixed asset to launch trial production of a new product,
  • the cost of purchasing materials and raw materials acquired solely for the purpose of trial production of a new product.

In turn, the costs of launching a new product will be considered if it may be qualified as:

  • tests, expertise, obtaining or maintaining a marketing authorization or other mandatory documents related to marketing authorization or use, as well as the costs of fees charged to obtain, renew or extend them;
  • product life cycle studies,
  • Environmental Technology Verification (ETV) system.

The deduction will be allowed if the costs of trial production of a new product or its introduction to the market were actually incurred in the tax year for which the deduction is made and were not reimbursed to the taxpayer in any form or were not deducted from the income tax base.

Want to find out how much tax your company can save and how to do it? Contact us.

WHY US

WE ARE A REPUTABLE LAW FIRM

We are a reputable law firm

WE HAVE BIG EXPERIENCE

We have extensive experience in tax consulting

WE ARE EXPERTS

We are well prepared in terms of content

WE APPROACH EACH CASE INDIVIDUALLY

We will handle your case individually and professionally

FAQ

The prototype relief is intended for taxpayers who have developed a new product with technical efficiency, utility, and functionality that stands out, and reduces the costs incurred during the testing phase of such a product, as well as its introduction to the market. It is worth noting that the relief allows all entrepreneurs who incur expenses in the development of new products, regardless of the industry they operate in, to achieve real financial benefits. The relief involves the possibility of deducting from the tax base an amount equal to 30% of the sum of the costs of producing a trial of a new product and introducing a new product to the market, with the deduction amount not exceeding 10% of income in the tax year.

As part of the prototype relief, it is possible to deduct from the tax base amounts representing 30% of the costs of producing a new product prototype and introducing it to the market. The costs of producing a new product prototype can include:

  • the purchase price or cost of manufacturing new fixed assets necessary to launch production of the new product prototype,
  • expenses for improvements incurred to adapt fixed assets for launching production of the new product prototype,
  • costs of purchasing materials and raw materials acquired solely for the production of the new product prototype.

As for the costs of introducing the new product to the market, they may include:

  • research, expertise, obtaining or maintaining a permit to trade or other mandatory documents related to market or use approval, and the costs of fees collected for their acquisition, renewal, or extension;
  • product life cycle research,
  • environmental technology verification (ETV) system.

MEET OUT TEAM

TOMASZ MADEJCZYK
LEGAL ADVISOR

Graduate of the Faculty of Law and Administration of the University of Lodz

MIKOŁAJ DUDA
Tax Advisor

A graduale of the Law and Administration Faculty of the University of Łódź.

DAWID ĆWIKLAK
Legal Counsel

Graduate of the Law Faculty of the University of Łódź.

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