Tax relief for robotization - a new tax preference of the Ministry of Development


Running your own business is not an easy task and is often associated with a high risk of failure. The ability to make strategic decisions and the knowledge of tax law are important for entrepreneurs. The government gives business owners the opportunity to take advantage of a number of tax preferences, e.g. child relief, rehabilitation relief or internet relief. From January 1, 2021, it is planned that another new tax relief will apply - the robotization tax relief. Let's find out for what purpose it will be introduced and who it will apply to!

What is the robotization tax relief?

The nature of the robotization allowance and the method of its settlement will be similar to the research and development preference, which, as a rule, is shown in the annual tax return after the end of the financial year. The definition of research and development activity is specified in Art. 5a point 38 of the PIT Act. The work performed for her is of a creative, developmental or scientific nature. They must be performed systematically in order to improve competences and acquire knowledge for new applications.

The robotization relief will apply to the purchase or lease of new machines, robots and even production lines. The tax laws will list specific expenses that the company will be able to deduct from the tax base. Importantly, the new preference will also cover the costs of machine software, the purchase of professional 3D printing devices, employee training related to machine operation, as well as many other expenses incurred to robotize the enterprise.

Tax relief for robotization - who will benefit from it and when?

The robotization tax relief will be available to PIT and CIT taxpayers, whose purpose is to automate workstations.

The draft of preferential taxation is to be approved by the Sejm in September, and then, as Deputy Prime Minister Jadwiga Emilewicz informed, enter into force at the beginning of 2021: "We are preparing, together with the Ministry of Finance, this pro-investment package, which, apart from the Estonian CIT, also announced by the prime minister, will include a robotisation relief, i.e. a tax relief that we want it to come into force on 1 January next year."

The robotization relief will operate for 5 years, starting from 2021 until the end of 2025. The entrepreneur will be able to settle the first expenses incurred under the relief in 2021 in the annual declaration for 2021, which he will submit in 2022.

To sum up, the robotization discount is one of the ways to optimize costs and improve the efficiency of production lines. It is aimed exclusively at companies that want to automate production processes or replace heavy physical work with human machines.