CIT - page 2

The last blog entry concerning research and development relief (hereinafter: R&D relief) we ended with the conclusion that despite the liberal approach of the tax authorities, which allow the relief to be used by a large group of taxpayers, the effective implementation of the relief requires an in-depth analysis of the regulations that govern it – especially in the context of the specific nature of a given taxpayer's business activity.

At the beginning of the year significant changes were introduced in the provisions of the Corporate Income Tax Act, i.a. in the scope of the obligation to charge a flat rate income tax at source in connection with payment of remuneration to foreign entities.

A draft bill was published on 22 February 2016 to amend the Personal Income Tax Act and the Corporate Income Tax Act. This Tax Alert discusses the proposed changes to the Corporate Income Tax Act ("CIT Act"). As pointed out in the motivation to the draft, the changes are to clarify the currently existing solutions and remove any interpretative doubts.

On 1 January 2016 the Law of 25 September 2015 on changes to some regulations connected with supporting innovation (hereinafter called: the "Law") became valid. The Law introduces significant changes in the scope of eligible deductions from Income Tax. The provisions regulating the principles of deductions falling within the scope of the so-called new technology tax credit were repealed. In their place new tax credit concerning the research and development activity was introduced.

What is more beneficial from the perspective of tax deductible costs: car rental or an operating lease? What is the significance of various forms of agreements for an entrepreneur – taxpayer?