Change in the eligible costs linked to research and development expenditure

As on 1^st January, 2017, the catalogue of eligible costs will be extended by costs of obtaining and maintaining a patent, utility model right, the right from the registration of industrial design, incurred by the taxpayer being a micro-entrepreneur, small or medium-sized enterprise set out in added Article 18d subparagraph 2 point 5 of the CIT Act as understood by the provisions on the freedom of establishment. In addition, these entities will be able to reduce the tax base in the annual calculation by higher limits of expenses – 50% of eligible costs. For large enterprises, these limits will amount to 50% of  costs in the case of labour costs of those employed  in order to carry out research and development work, 30% in the case of other eligible costs. These expenses can be settled over the subsequent 6 years. In the case of start-ups  which do not report income or have too small an income to avail themselves fully of the tax relief for costs of research and development incurred, a solution was introduced to grant reimbursement of eligible costs, in the part that was not covered by the tax relief in a given year due to the lack of taxable income or excessively low income. This solution means the grant of reimbursement of a part of eligible costs. The decision to choose this solution will belong to the taxpayers.