Safe tax optimization

On September 28, 2023. The Ministry of Finance published draft WHT clarifications (hereinafter: “Draft Clarifications”). The Draft Explanation focuses on the issue of the beneficial owner of receivables (“beneficial owner”). This is the second draft of the WHT clarifications, as the 2019 version of the previous document, due to numerous postponements of its entry into force and amendments to the said regulations, was not published as a final document.

The prototype tax credit from January 1, 2022 is available to entities engaged in research and development activities. The purpose of this relief is to support entrepreneurs to carry out activities that create new and improve existing products, processes and services. It will be available to those taxpayers who incur expenses at the stage of testing an invention, prior to mass production and marketing. A company that decides to prepare a prototype can include the expenses incurred for its creation in deductible costs, and will also gain the ability to deduct additional expenses from the tax base.

Managing innovation and research is not only a scientific mission, but also an opportunity for significant tax benefits. In Poland, where tax law is complicated, some companies may not realize that they can take advantage of tax breaks for Research and Development (R&D). Even fewer companies are aware of the special benefits available to units with Research and Development Center (CBR) status. In this post, we cover the topic of tax preferences for R&D, and specifically the benefits for entities with CBR status.

In the light of the dynamically changing tax regulatory landscape, especially for those engaged in R&D activities, it is becoming increasingly important to understand and effectively utilize the available tax credits. In this context, the R&D Tax Credit and the IP Box Tax Credit, both aimed at taxpayers engaged in R&D activities, seem extremely attractive, especially in the context of the recent changes introduced by the “Polish Deal.” However, is it possible to use both of these reliefs at the same time? What benefits might this bring to taxpayers?

With the introduction of the “Polish Deal” on January 1, 2022, there have been significant changes to the regulations governing tax credits. The purpose of these changes is to promote innovation and support research and development (R&D) in Polish companies. Among the new regulations, the most noteworthy is the “relief for support of innovative employees.” This new mechanism is intended to support those companies which, despite employing employees to conduct R&D activities, have incurred losses in a given tax year or their income does not allow full deduction of qualified expenses.

Are you planning to acquire a company or invest in a new business? Every investment decision carries a variety of tax implications that can have a significant impact on the ultimate profitability of your investment. In our latest MartiniTAX blog post, we outline the key tax aspects of structuring business transactions. We analyze the differences between an “asset deal” and a “share deal,” explain the tax implications for sellers and buyers, and discuss CIT, PIT, VAT and PCC tax issues in detail.

The family foundation is set to become an important element of Polish law, offering new opportunities for succession processes and the accumulation of family assets. In our latest blog post, we detail these new regulations, which are expected to take effect in the first half of 2023. Learn about the Family Foundation, its status as a CIT taxpayer, as well as the details of running a business. Read about preferential taxation and find out when the Family Foundation can be exempt from CIT.

When planning for succession and managing family assets, it is worth considering the various options available. In Poland, foreign family foundations have been popular until recently, but legal barriers, high maintenance and legal costs, and the need for regular foreign travel have stood in the way of taking full advantage of them. Closed-end investment funds may be an alternative, offering some tax advantages, capital management support and investment protection through strict regulations.