The Prototype Tax Relief allows businesses to additionally deduct 30% of certain costs related to the trial production of a new product and its launch on the market. The amount of the deduction may not exceed 10% of the income earned by the business in a given tax year.
The relief is primarily intended for companies that have completed the R&D stage of developing a new product and are moving on to launching production and preparing the product for sale.
Trial production is the technological start-up stage preceding the regular production of a new product developed as a result of research and development activities.
At this stage, the design, construction or engineering work should already be complete, and activities focus on carrying out the trials and tests necessary to launch production.
Costs that may qualify for the relief include, among others:
The relief also covers certain costs incurred in preparing a new product for launch on the market, including the costs of:
The Prototype Tax Relief can be a natural next step after R&D tax relief — R&D tax relief supports the development of a solution, while the Prototype Tax Relief may cover part of the costs associated with moving from completed development work to the launch of production.
We will analyse your company’s activities and expenditure and assess whether the available tax incentives can be applied. The initial assessment is free of charge and involves no obligation to continue working with us.