The Expansion Tax Relief allows manufacturers to additionally deduct from their taxable base certain costs incurred to increase revenue from the sale of their own products. The maximum additional deduction is PLN 1 million per tax year.
The relief applies to products manufactured by the business and may cover activities related both to increasing sales in Poland and to expansion into foreign markets.
The catalogue of eligible costs is defined by law and may include, among others:
The relief is intended for businesses selling products they manufacture themselves. It is not a general relief for all marketing expenditure and does not apply to the sale of services.
In addition, the business must meet the statutory conditions relating to an increase in revenue from product sales over the following two tax years.
A business may recognise the expenditure as a tax-deductible cost under the general rules and then — once the conditions of the relief are met — additionally deduct the eligible amount from the taxable base, up to a maximum of PLN 1 million.
At a 19% CIT rate, the maximum additional tax benefit may amount to PLN 190,000 for a given year.
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.