Gowin: The incentives for companies investing in research and development will double
Ministry of Science and Higher Education will shortly present a draft of the so-called second law on innovation, whose main aim will be to double the tax breaks for companies investing in research and development - said Minister Jarosław Gowin.
Deputy Prime Minister, Minister of Science and Higher Education expressed his view that the first law on innovation in force from January 1, and new legislation on which the ministry is now working, will lead to "significant increase in 2017 of the Polish economy innovativeness - one of the main pillars of the Plan for Responsible Development of Deputy Prime Minister Mateusz Morawiecki".
According to Gowin, the new law on innovation, which should enter into force on 1 January 2018, will include a number of additional instruments, which could not be agreed upon between the ministries in time before the completion of the work on the first document.
The most important change will be doubled tax relief for businesses engaging in innovative activities, investing in cooperation with universities and research institutions, and in research and development.
"Currently, this tax break is 50 percent, and everything indicates that from January 1, 2018 it will be 100 percent. This means that every penny invested in co-operation with science, research and development, will be tax deductible" - said Gowin.
Citing the January ranking of the most innovative countries in the world compiled by news agency Bloomberg, in which Poland moved up from 23rd to 22nd place, he expressed the view that "albeit slowly, our country is climbing up in terms of innovation".
"I am convinced that in 2017 our position will improve in leaps, because from January 1 we have the Law on Innovation prepared by the Ministry of Science and Higher Education in close cooperation with the Ministry of Development" - said Gowin.
According to the Minister of Science, innovation growth in the Polish economy it is possible, because "the first time in over 20 years we have the government that with regard to the issue of innovation has succeeded to break out of the philosophy of separation of ministries". "All projects are created in close cooperation between the several ministries and the leading ministry, which is the Ministry of Development" - he explained.
During meeting with journalists on January 20 at the Krakow Technology Park, the company managing the local special economic zone, Gowin said that it was one of the institutions in Poland that implemented the most innovative projects over the last year.
"The effects are already noticeable in the Polish economy. It wouldn\'t be possible without translating these projects into tangible results, and it is done precisely in such institutions as the Krakow Technology Park. This place has everything under one roof: an incubator, office space, training and consulting services" - the minister added.
Deputy Minister of Development Jadwiga Emilewicz reminded that the Krakow Technology Park is one of the implementers of acceleration programs for start-ups from the first competition in the government program Start In Poland, organized by the Polish Agency for Enterprise Development (Polska Agencja Rozwoju Przedsiębiorczości, PARP). Krakow Technology Park invited the following entities to the project: the International Airport Krakow-Balice and EC Group - spin-off of AGH University of Science and Technology.
"We hope that we will see here many new projects, companies and very attractive, highly paid jobs. Start-ups are the ones that generate these types of jobs, which we want in Poland today" - she noted.
According to her, in recent years the Krakow Technology Park has proven that it has the potential to attract valuable ideas, develop and then release them. "The Park begins to specialize, various companies have offices here, but we can see emerging specialization related to the creative industry, which has its facilities here and the first successes (...). We hope that the product that beats the pokemons will be born right here" - noted Emilewicz.
The law on innovation, which in its entirety is in force as of this year, abolished the income tax on intellectual property contributed to the company. Under the new rules, the cost of obtaining a patent by small and medium-sized enterprises is tax deductible.
In addition, the law increased the amount of the eligible costs of expenditure on research and development, which are tax-deductible. For micro, small and medium-sized companies these deductions amount to 50 percent. Large companies deduct up to 50 percent personnel costs and 30 percent other costs related to research and development activity.
The new regulations extended the period in which entrepreneurs may deduct the costs incurred for research and development from 3 to 6 years.
In addition, start-ups conducting research and development can apply for a cash refund in the amount of 18 or 19 percent of potential but unused deduction.
PAP - Science and Scholarship in Poland