December 31 marks the end of the tax year for most taxpayers. As a result, for those taxpayers whose tax year coincides with the calendar year, March 31, 2026, will be the deadline for filing the CIT-8 tax return. For this reason, it is worth remembering that it is possible to take advantage of the R&D relief, which allows for additional benefits as a result of double, and in some cases even triple, deduction of so-called eligible costs. The R&D relief is not calculated automatically, in a specific amount for each taxpayer — it must be calculated and included individually in the annual tax return.
What is the R&D relief?
The R&D relief is dedicated to taxpayers conducting research and development activities, which have been strictly defined by the legislator. Taxpayers wishing to take advantage of the R&D relief should first verify whether their activities are creative in nature and are undertaken systematically in order to increase knowledge resources and use them to create new applications.
Eligible costs
In the case of conducting R&D activities, the taxpayer is entitled to deduct from the tax base the so-called eligible costs incurred for the R&D activities undertaken. Consequently, the re-deduction of selected costs from the tax base allows for an additional reduction in tax liability.
Eligible costs include, among others, the remuneration of employees involved in R&D work, expenses for materials and raw materials, as well as for expert opinions, opinions, and consulting services used in the course of R&D activities.
Documentation gathering
In order to benefit from the R&D relief, the taxpayer must have appropriate documentation confirming the costs incurred and records of the working time of employees involved in R&D work. In the course of its verification activities, the tax authority usually requires the submission of evidence confirming the type of expenses incurred and the nature of the business activity. Having individual interpretations of tax law or opinions from external advisors and institutions on, for example, technical aspects confirming the innovative nature of the activities undertaken is an additional advantage.
Deduction of eligible costs for previous years
It should be noted that deductible eligible costs must be incurred in the tax year for which the relief is applied. However, this does not mean that eligible costs incurred in previous years are lost due to the lack of prior verification of the nature of the work performed. Taxpayers who did not take advantage of the R&D relief in their original CIT-8 return filed for previous years have the right to file an amended return in order to claim the R&D relief in the appropriate period. The CIT-8 return correction should be submitted within 5 years, as the tax liability expires after 5 years from the end of the calendar year in which the tax payment deadline expired. For taxpayers whose tax year coincides with the calendar year, December 31 of this year is the deadline for submitting a correction to the CIT-8 return for the tax year ending December 31, 2019.
Correction of CIT-8 tax return and confirmation of overpayment
In order to benefit from R&D relief for previous years, taxpayer should also submit an application for a tax overpayment refund, providing justification that the criteria for the creative and systematic nature of R&D work have been met. It should be remembered that the description of the taxpayer’s activities and work must correspond to reality due to the risk of liability indicated in Article 76 of the Penal Fiscal Code. Submitting an application for a refund of overpayment may constitute a prohibited act and be punishable if taxpayer knowingly provides information that is inconsistent with the actual state of affairs or conceal the actual state of affairs. The mere exposure of the authority to an undue tax refund is subject to penalties, i.e., it is not necessary to actually obtain a tax refund for the offense to be committed; the mere occurrence of the exposure is sufficient. Therefore, it is important that the facts described in the application correspond to reality.
