New innovation law to be introduced

The Ministry of Science and Higher Education has confirmed its intention to implement new legislation that it claims will support innovation in Poland, according to a report on Tuesday in the Polish Press. The Innovation Act, which will affect tax deductions for businesses and profits for scientists who benefit from new inventions, is expected to be implemented in two phases. The first phase, which be effective as of January 1, 2017, will allow SMEs to deduct a total of  50 percent of the cost of obtaining a patent and expenditures on research and development (R & D). It will also allow a 50 percent deduction for larger businesses, plus a 30 percent deduction for R & D. The second phase, which will be implemented at the beginning of January, 2018, will extend the period of time in which scientists can benefit from the commercialization of products they have invented – from five years to six years. The Minister, Jarosław Gowin, stated in September, “The most important element of this law...are deductions of taxes for a large group of Polish entrepreneurs. We estimate that in the portfolios of those entrepreneurs who decide to develop pro-innovation activities remain together even up to PLN 0.5 billion per year.” The report also mentioned that, beginning in 2017, the tax imposed on new intellectual property will be eliminated.