Tax Blog

Scientific research and development are at the heart of innovation and technological progress. They are aimed not only at increasing the stock of knowledge, but also at using this knowledge to create new applications. In Poland, entities engaged in this type of activity are eligible for a tax credit, however not all such activities automatically qualify for the credit. In this blog post, we will address the issue of determining what criteria must be met in order for research and development to qualify for the tax credit. We will analyze the prerequisites of creativity, systematicity and increasing the stock of knowledge, which are key in this context, and discuss interpretations of these conditions under tax law.

Conducting scientific research or development work is not only key to technological progress and innovation, but also to benefiting from the R&D tax credit. This relief can become an important financial support for companies that undertake creative activities aimed at using available knowledge to create new solutions. In the article below, we focus on the definition of research and development activities, according to the provisions of the CIT Law and the PIT Law, and discuss various examples of development work that may qualify for the R&D tax credit. Understanding these issues is crucial for any entrepreneur who wishes to take advantage of this relief.

Managing a company’s finances is not only a matter of increasing revenue, but also of dealing effectively with emergencies and unforeseen losses. One important aspect is the skillful use of tax benefits, which can help a company survive difficult periods. In today’s post we will focus on the situation when a taxpayer, despite taking advantage of the relief, incurs losses. We will discuss the options for accounting for such a relief, paying particular attention to the options for deducting expenses in the following six years and for a “cash” refund. We will also review the conditions that must be met to take advantage of these options. We will also zoom in on the potential pitfalls and limitations to be aware of when deciding on one of these solutions.

Taxation under the Estonian CIT system involves a number of responsibilities for taxpayers. In this material, we take a closer look at the specifics of these tasks, from recordkeeping obligations to bookkeeping to filing requirements and declarations. Do companies using Estonian CIT have to provide for the separation of undistributed profits and unabsorbed losses in equity? What declarations are required of shareholders? Answers to these and other questions can be found in the material.

As a general rule, the period of taxation under Estonian CIT is 4 tax years, with the possibility of extension for another 4 tax years, but there are situations in which a taxpayer may lose the right to benefit from this taxation system despite the lack of expiration of this period.

The Estonian CIT system, an alternative to the “classic” CIT, has different rules regarding rates and calculation of tax due. Tax payment deadlines also vary depending on the type of taxable income. In this post, we will discuss in more detail the issues of tax rates and payment deadlines.

Non-business expenses are one of the key elements of taxation in the Estonian CIT system. Although the legislature does not provide a direct definition of which expenses fall into this category, we can find some guidance in the Guide to Lump Sum Tax on Corporate Income and in the practice of the interpretive authorities. In this post, we will discuss the general concept of such expenses, how to apply the relevant regulations, and how the individual approach matters in this regard.

There are many types of benefits that, although paid to related parties, are not classified as hidden profits. In this article, we will discuss in detail which benefits are excluded from the definition of hidden profits under Estonian CIT, what are the exceptions under the CIT Law, and what documentation issues are crucial, using the example of the use of company cars.