Amended tax law regulations, which are part of “the Polish Order” package, imply introduction of new reliefs for entrepreneurs, including solutions modelled on a relief that has been functioning in France for several years. We are talking about so called relief on prototype, which is directed to those entrepreneurs, who, as a result of ongoing research and development, create a product that is new and so far, non – functioning on the market.
It is worth mentioning that, it will be enough for the product to be innovative on the scale of the company, developing its offer and allowing to gain new markets in the future. This reliefis about to include in its scope costs associated with a test production of such product, as well as costs arising from placing this product on the market. It will allow to deduct 30% of total costs from test production and product placement on the market from the tax base, whilst it will not be allowed for the deductible amount to exceed 10% of the profit. In order to facilitate the implementation of previously mentioned relief, the draft provisions include enumeration of expenses which will be considered within the framework of test production and process of placing product on the market.
It is hard to miss, that relief on prototype is basically a development of already existing research and development relief. If we take a look at legal definitions of both reliefs, it is clear that their ranges partially overlap and there are also a lot of similarities between them. Both of them are connected to ongoing research and development. However, in one case it is all about the process itself and in the other case it is about the result of this process. Therefore, main difference between them comes down to the fact, that relief on prototype includes
a stage after the research and development work is completed, but before proceeding with main production, while the scope of research and development relief action doesn’t include technological start-up stage, which is associated with many trials and tests of the product, before production process will start. Undoubtedly, indicated changes in tax regulations, will bring a series of interpretation problems. For example, eligible costs incurred as a result of first trial of the product, previously classified under research and development relief, might be classified, under the new legislation, as eligible costs within the framework of relief
on prototype.