We assist enterprises in effectively utilising available tax incentives, offering comprehensive support in applying the innovative employee relief. This mechanism allows for an additional deduction from the tax base for remuneration costs of employees involved in R&D. The relief helps to boost a company’s innovation potential, optimise cost management, and build a competitive advantage through the development of new products, services, and technologies.

What is the innovative employee relief?

• The innovative employee relief complements the R&D relief and is intended for taxpayers employing individuals involved in R&D. It allows the employer, as a PIT remitter, to withhold monthly PIT advances for employees or contractors who spend at least 50% of their working time in a given month on R&D activities.

The amount of PIT advances that can be withheld is limited to the portion of eligible R&D costs not previously used under the standard R&D relief.

Who is eligible?

• The relief is available to PIT or CIT taxpayers carrying out R&D activities who, on account of a tax loss or low profitability, were unable to fully claim eligible R&D costs under the standard R&D relief.

When can the relief be applied?

• The relief is applied in monthly settlements, but only after the annual PIT or CIT return for the previous tax year has been submitted. If the return is filed by 31 March, the relief may be applied from April until the end of the calendar year. The taxpayer must also hold the status of a PIT remitter.

What are the benefits?

• The innovative employee relief improves a company’s cash flow by allowing it to retain amounts that would otherwise be paid to the tax office as PIT advances on remuneration. Effectively, it provides a financial benefit for businesses that were not able to fully claim the R&D relief due to tax losses or insufficient income, offering a form of reimbursement and liquidity support.