Steuerentlastung für Expansion

The relief is a solution addressed to producers. This is due to the fact that the purpose of the relief for expansion is to increase the sales of products defined in the Act as items manufactured by the taxpayer. Therefore, taxpayers providing services will not benefit from the relief and the possibility of deducting the costs incurred.
In order to take advantage of the relief, the taxpayer must record an increase in revenue from the sale of their products. The Act indicates that the taxpayer will be entitled to take advantage of the relief for expansion provided that within two tax years they record:

1. an increase in revenues from the sale of products (compared to revenues from this) or
2. achieving revenues from the sale of products not yet offered or
3. achieving revenues from the sale of products not offered in a given country.

Interestingly, the increase in revenue is not subject to any threshold that the taxpayer must exceed. It is simply about achieving or increasing revenue from the sale of one’s products. Nevertheless, the legislator stipulates that, as part of the relief, the increase in sales as a result of transactions concluded with related entities is not taken into account.
 

The costs which are deductible under the relief are the costs of:

1. participation in fairs - incurred for air tickets, accommodation and meals for employees and organization of the exhibition site;
2. promotional and information activities - incurred on leaflets, websites, press publications, etc.;
3. adapting packaging to the requirements of contractors;
4. preparation of documentation for sale - regarding, for example, certification of goods or registration of trademarks;
5. preparation of documentation for tenders and offers.

The taxpayer may not deduct the costs incurred in the case of costs related to SEZ activities exempt from income tax. In addition, costs reimbursed or deducted from the tax base cannot be deducted.
If the amount of the deduction exceeds the income earned by the taxpayer, the relief can be settled for six consecutive years. If the taxpayer does not meet the conditions of the new relief, they will have to return it.