Tax Blog

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.

The family foundation is a new element in the Polish legal system that aims to streamline succession processes and the management of family assets, especially in the context of family businesses. It is particularly important when the heirs of the company’s founder have no interest or qualifications to run the business.

Do you know how Family Foundation income is taxed? In our latest post, we look at the taxation aspects at the stage of benefit payments to beneficiaries. Find out what the situation is when a foundation is dissolved, what the CIT rules are, or what the tax consequences are for “zero tax group” benefits. We also address the transfer of assets and benefits to the founder and beneficiaries, as well as the potential consequences for third parties who are not beneficiaries or funders.