I. Changes in income tax for individuals not conducting business activity: Raising to PLN 30,000 the annual amount of income tax-free from personal income tax for…
Innovation Box is a new initiative pursued by the Ministry of Business and Technology with the aim of boosting Polish entrepreneurship. Similar solutions have already been adopted by some of the nations associated under the aegis of the Organization for Economic Cooperation and Development.
The initiative provides for introducing a tax relief for entrepreneurs who have derived revenue from commercializing intellectual property rights. It is worth noting that Poland still lags behind many highly developed countries in terms of bringing out innovative solutions to the market. However, according to, the Minister of Business and Technology, Jadwiga Emilewicz, Poles have always displayed a strong spirit of entrepreneurship and the new initiative is to reward people who invest in the development of research and scientific activities. Should an entrepreneur develop a patent, a new technology, a device or service that has previously been unknown, upon generating profit on its sale they will be entitled to take advantage of a preferential CIT rate, amounting to a maximum of 4%.
The Minister has assured that her work focuses on creating sound legislation and reducing red tape so as not to unnecessarily deprive entrepreneurs of the resources that could be put to a better use, namely investments in risky ventures such as research, development and new technologies. The Ministry underscores the fact that each initiative that they prepare focuses on small-sized enterprises. The abovementioned actions are also to encourage this particular group to carry out more investing activities.
The proposed measure is to serve as an innovative solution that facilitates the development of entrepreneurship in Poland. The Minister has declared that it is her intention to focus on drafting simpler, better legislation, and a transparent, equitable tax system which would not tolerate bypassing its requirements.
The Ministry hopes that thanks to last year’s Innovation Act and the planned relief, working on which the government is to finish be the end of Q1, entrepreneurs will take bolder steps towards manufacturing and commercializing the results of their research. As the solution is a beneficial tax change, it will be possible to use it during the course of the ongoing tax year.
The Ministry emphasizes the fact that the its main purpose is to make Polish economy less imitative, and simultaneously increase its innovativeness. The draft amendments to relevant acts are yet to be published.