The robotization tax relief is a new form of support available as of 1 January 2022 to companies investing in robotization and automation of production. It provides for additional deduction from the tax base amounting to 50% of qualified deductible expenses. This means that in fact 150% of the given expense may be recognized for tax purposes – 100% as tax-deductible costs and 50% as additional robotization tax relief.
The tax relief applies to expenses incurred for robotization only in the years 2022-2026. According to recent tax rulings, the relief can be settled for fixed assets acquired before 2022 for which depreciation write-offs are made in the current period.
Doubts and ambiguities about the relief
The new regulations are unclear so there are doubts as to whether the taxpayer may additionally deduct 50% of depreciation write-offs in specific years from the tax base (income), or whether the intention of the legislator was to allow for one-off deduction of 50% of expenses for acquisition of fixed assets.
It seems that the first presented approach is accepted by the tax authorities. The Director of National Tax Information confirmed that in case of acquisition of brand-new fixed assets (robots) and entering them into the fixed assets register before 1 January 2022, depreciation write-offs made in the years 2022-2026 will be subject to robotization tax relief (reference number 0111-KDIB1-1.4010.221.2022.2.AW).
On the other hand, the Director of National Tax Information pointed out that taxpayers who purchase a robot may deduct 50% of their expenses from the tax base as one-off, in the year of its purchase and have the right to settle tax deductible costs related to the purchase of the robot through depreciation write-offs (reference number 0111-KDIB2-1.4010) .305.2022.2.AR). This is a different position from the one presented above.
Moreover, in another tax ruling it was confirmed that if the taxpayer paid an advance for the equipment (industrial robot) purchased in 2021, the robotization tax relief will also apply (reference number 0111-KDIB1-2.4010.318.2022.2.DP).
However, in another ruling, the authority indicated that purchase of IT systems is not included in qualified expenses catalogue, as these systems are used to manage and plan production processes and not to “launch and put into use an industrial robot and other machines and peripheral devices” in accordance with the literal wording of the regulations (reference number 0111-KDIB1-2.4010.9.2022.1.AW).
Utilization of robotization tax relief in business
It is worth considering applying the robotization tax relief if a company operates in innovative business sector. Especially that the tax relief is temporary.
Due to the lack of clarity of regulations, before applying robotization tax relief it is worthwhile applying for an individual ruling in order to avoid unnecessary discussions with tax authorities.
If you are interested in our support for robotization tax relief, please contact our experts:
Head of Tax