We support IT companies in taking advantage of available tax reliefs in a risk-free way. We have extensive experience in implementing the most commonly used solutions in the industry, i.e. the 50% rate of tax deductible costs for authors, the research and development (R&D) tax relief and the IP BOX tax relief.
50% rate of tax deductible costs for employees who are authors
Persons employed under a contract of employment, performing creative work, are entitled to a 50% rate of tax deductible costs for the use or disposal of copyrights (special rate for authors of copyrighted works). For example, programmers or developers of computer games and applications may benefit from the increased rate for authors. Applying the rate for authors makes it possible to offer a competitive net salary to the employee while reducing the total level of costs on the part of the employer.
The implementation procedure involves:
- analysis of the activities performed by the employees of a given company;
- developing a procedure for recording working time, or evaluating the solutions currently in use and proposing necessary changes;
- developing a procedure for recording works created by employees;
- drawing up the necessary documents required under the labor law, including:
- an employment contract that allows the use of rate for authors;
- regulations for the submission, recording and receipt of works, together with the required attachments;
- ongoing support in the process of implementation and utilization of the 50% rate of tax deductible costs for authors.
Research and development (R&D) tax relief in the IT industry
We provide comprehensive support in the process of implementing the research and development relief (R&D relief). This relief allows for an additional (i.e., exceeding the standard cost accounting) deduction from income of up to 200% of the expenses incurred for this purpose significantly reducing the total income tax burden on the company. In the case of high-tech companies, the largest proportion of costs settled under this relief is the salaries of employees engaged in creative and innovative tasks.
Cooperation includes:
- verification and evaluation if and to what extent it is possible to apply the relief for the particular type of activity;
- analysis of expenses in terms of their deductibility under the relief;
- drafting an application for an individual interpretation;
- preparing a procedure for properly documenting the costs of R&D activities;
- preparing a calculation of eligible (deductible) expenses for the purpose of accounting for the relief;
- ongoing support throughout the entire phase of settling the R&D tax relief;
- cyclical tax audits on the correctness of accounting for the R&D tax relief;
- representation in possible proceedings concerning the use of the R&D tax relief conducted by tax authorities;
- Verification of the possibility and validity of obtaining the status of a research and development center, entitling to higher deductions.
IP BOX tax relief
We provide comprehensive support in the process of implementing IP BOX relief, which is a form of preferential taxation of income from certain intellectual property rights – at a preferential rate of 5% (PIT/CIT).
Cooperation includes:
- verification and evaluation of the economic impact of using the relief for a particular type of activity;
- drafting an application for an individual interpretation;
- verification of the entity’s internal documentation in order to secure your right to the relief
- preparing the necessary record-keeping procedures;
- preparing an income calculation for the relief.
