With this credit, taxpayers can reduce the advance PIT (and flat-rate income tax) withheld monthly from their employees’ income.
Benefits of the innovative employee tax credit
The allowance for innovative employees is available to entrepreneurs who employ employees directly involved in the implementation of R&D activities at a rate of not less than 50%. This applies to income (revenue) from:
Taking advantage of the relief involves reducing the amount of advance income tax payments on the salaries of employees directly involved in R&D work. The credit complements the R&D tax credit by allowing a different way to account for excess costs incurred for R&D activities in the previous tax year
The Innovative Workers Tax Credit has been in effect since 2022. It is a new solution that allows entrepreneurs to use tax preferences related to research and development activities more efficiently.
With the Innovative Workers Allowance, companies can better manage their costs and more efficiently use the funds allocated for innovation development, which promotes their competitiveness in the market.
