At the beginning of this year, tax breaks for creativity were significantly reduced. In place of the general privilege of creative activity, there was an indication of who could apply a very favourable design, assuming that costs constitute 50% revenue. This solution not only reduces tax, but also significantly simplifies accounting accounts.
The change a few months ago is criticised not only for the dubious economic sense but also for the poor quality of legislative technology. Excessive ambiguity of statutory terms makes life difficult for both creators and employers. It is not known whether the planned repair of the mistake will actually improve the quality of these regulations.
Research and development as a key to the modern economy
It would be difficult to find a political party that does not demand support in the field of research and development. There is an opinion that the Polish economy does not make full use of its potential due to too low investment for this purpose.
However, it is not only about state grants but also about creating an optimal environment for innovation. Unnecessary barriers should be avoided that may discourage at the outset. There is no denying that research, development and the resulting innovation are closely linked to the widely understood creative activity. One may doubt whether it makes any sense to receive tax privileges in this area.
Computer graphics and user experience design outside the tax privilege
The Act, as it stands, confers the privilege of creative activity on computer programs. It might seem that IT professionals will remain at a lower and easier tax settlement. Optimism, however, ends if we consider that their work does not necessarily have to be related to the creation of computer programs.
Computer graphics are a slightly different profession than computers. He doesn't create computer programs. He does electronic art. For this reason, he cannot apply the privilege of 50% the cost of obtaining revenue. The relief covers creative activity in the field of arts, but this group of computer graphics cannot be classified as well.
The location of computer scientists specialising in user experience design is similar. Their job is to adjust the product in such a way that the customer receives it as best as possible. Such specialisation is of great importance in banking, for example. Unfortunately, the right to relief can also be lost in this case. User experience design does not have to be related to creative activities in computer programs.
Planning to fix a bug can hardly change much
The government has published a project that will somehow correct the error, but there is fundamental doubt that there will be a real change. The IT industry is entitled to moderate joy. The directory of tax-privileged creative activities will be extended to include computer games (now computer programs only).
It seems that computer designers working on creating games will pay a lower and easier tax, but such luxury will avoid, for example, computer graphics for advertising or animated films. It is difficult to find some logical justification in this design.
The tax advantage for creators concerns a group much wider than IT specialists, but an example of complications for people in the industry gives some idea of potential difficulties. There are many indications that both the planned change in this respect and the amendment a few months ago may be included in the written laws without the necessary care being taken.
source: https://www.forbes.pl/biznes/kruche-przywileje-podatkowe-dla-tworcow-rzad-planuje-naprawic-swoj-blad/svypnqw
Author:
Andrzej Dmowski
Managing Partner Russell Bedford, Doctor of Legal Sciences, Lawyer, Tax Advisor, Restructuring Advisor, Certified Public Accountant – Expert Auditor in Ireland, Certified Fraud Examiner - Expert in Crime Detection and Abuse, Certified Internal Controls Auditor - International Internal Auditor.
Graduate of the University of Cambridge - British Centre for English and European Legal Studies - Faculty of Law and Administration, Graduate and Fellow of the Faculty of Law and Administration of the University of Warsaw.
Specializes in settlement of transactions between related entities - transfer pricing, legal and tax aspects of M&A and issues concerning derivatives of financial instruments.