In 2026, a small business can deduct innovation, expansion, and investment costs. You can benefit from R&D, IP Box 5%, prototype relief, expansion relief, robotization relief, sponsorship relief, one-off depreciation, and “cashless taxpayer” relief. Below, I explain the rules, limits, and required documents.
Who is a “small taxpayer” and what rates apply in 2026?
A small taxpayer is one whose sales revenue did not exceed the equivalent of 2 million euro. As a small CIT taxpayer, you can apply a 9% CIT rate for income other than capital gains.
Definition and consequences
- Definition of a small taxpayer: PIT art. 5a point 20 and CIT art. 4a point 10 (NBP exchange rate from the 1st business day of the year). Source: PIT Act, CIT Act.
- CIT rate: 9% for small taxpayers and “starting” ones (income other than capital gains). Source: podatki.gov.pl.
What income reliefs are available for small businesses in 2026?
Most often, you will choose: R&D, IP Box, expansion, prototype, robotization, sponsorship, and “cashless taxpayer.” You can combine reliefs, as long as the costs do not overlap.
Overview of reliefs – summary
| Relief | Deduction | Conditions and limits | Basis / source |
|---|---|---|---|
| Research and Development (R&D) | Up to 200% of R&D salaries; 100% of other costs (200% for R&D centers) | Record of qualified costs; relief in PIT/CIT | podatki.gov.pl |
| IP Box | 5% of income from qualified IP | IP records, nexus indicator, PIT/IP or CIT/IP attachment | podatki.gov.pl, CIT IP Box |
| Expansion relief | Additional 100% of costs (total 200%) | Limit 1 million PLN annually; condition of revenue growth or its fulfillment within 2 years | podatki.gov.pl |
| Prototype relief | 30% of trial production and implementation costs (total 130%) | Limit: deduction up to 10% of income; detailed list of costs | podatki.gov.pl |
| Robotization relief | Additional 50% of robotization costs (total 150%) | Expenses incurred in 2022–2026 | podatki.gov.pl |
| Sponsorship relief (sport/culture/science) | Additional 50% of costs (total 150%) | Deduction in PIT and CIT; specific purposes only | podatki.gov.pl |
| “Cashless taxpayer” (terminal) | Deduction of 200% of terminal operating costs (statutory limits) | Available in PIT; analogous provisions in CIT | podatki.gov.pl, gov.pl |
Can you use one-off depreciation and in what amount?
You have two paths: 50,000 euro for a small taxpayer and up to 100,000 PLN for brand new fixed assets. Conditions vary in terms of asset scope and value thresholds.
Limits and regulations
- One-off depreciation up to the equivalent of 50,000 euro (small taxpayer and beginning entrepreneurs). Source: CIT art. 16k sections 7–13, PIT art. 22k sections 7–13.
- One-off write-off up to 100,000 PLN for brand new fixed assets from groups 3–6 and 8 KŚT (additional value conditions apply). Source: Journal of Laws 2017 item 1448, CIT art. 16k sections 14–21.
- Assignment to KŚT groups and technical documentation are crucial.
How does the bad debt relief work and when do you apply it?
After 90 days from the payment deadline, you can reduce the tax base as a creditor. The debtor must increase the tax base after 90 days.
What to do in practice
- Check the 90th day from the invoice/contract payment deadline.
- In the advance payment or annual PIT/CIT, include the reduction/increase.
- After payment, reverse the adjustment in the year of settlement.
Source: gov.pl – Ministry of Finance.
Can R&D relief be combined with IP Box 5%?
Yes. First, you deduct R&D costs, and the qualified IP income is taxed at 5%. Detailed records of IP costs and revenues are required.
Minimum set of documents
- Records of R&D costs and working hours.
- IP records with nexus indicator calculation.
- PIT/IP or CIT/IP attachment. Sources: PIT IP Box, CIT IP Box.
How does robotization relief work until the end of 2026?
You can deduct an additional 50% of robotization costs. The relief covers expenses included in tax deductible costs in 2022–2026.
Scope of costs
- Industrial robots, equipment, software, training, integration.
- Deduction in PIT or CIT in the annual return. Source: podatki.gov.pl.
What is the “cashless taxpayer” (terminal) status?
You can deduct 200% of terminal operating costs within the statutory limit. Preferences support cashless payments.
Conditions and deductions
- Relief in PIT (art. 26hd et seq. – “cashless taxpayer”), analogous in CIT. Sources: podatki.gov.pl, gov.pl.
- Remember to keep documents from the terminal operator.
Is it worth considering Estonian CIT as an alternative?
Yes, if you reinvest profits. In the Estonian model, you pay tax upon profit distribution or hidden profits.
Key benefits
- Deferral of CIT until profit distribution. Source: podatki.gov.pl – Estonian CIT.
- Effective combination with investments and reliefs without double-counting costs.
What does it look like in practice? Progress Holding’s experience
In 2023–2025, we implemented over 300 R&D and IP Box relief settlements for SMEs. The average tax savings amounted to 12–18% of the annual tax.
The most common error is the lack of R&D working time records and the separation of IP costs. Companies then lose the right to deduction or part of the benefits.
In manufacturing, small businesses often confuse robotization with automation without meeting the definition of an “industrial robot.” We verify specifications and agreements with integrators before purchase.
Progress Holding conducts relief audits and prepares a complete set of documents for KAS control. We also ensure implementation in the accounting system and team training.
Frequently asked questions
Can I combine R&D with prototype relief and IP Box?
Yes, if you do not deduct the same cost twice. R&D applies to costs, IP Box to income from IP.
How to check if I meet the “small taxpayer” condition?
Convert sales revenue from the previous year to PLN according to the NBP exchange rate from the 1st business day. Compare it with 2 million euro (PIT art. 5a point 20; CIT art. 4a point 10).
Robotization – until when do I have time for expenses?
The relief covers costs included in tax deductible costs in 2022–2026. You make deductions in the annual return for the year the cost was incurred.
How to document IP Box 5%?
Maintain IP records and related costs with the nexus indicator. Attach PIT/IP or CIT/IP to the return.
Can I deduct the terminal in a lump sum?
Yes, the “cashless taxpayer” relief provides for deductions in PIT. Check the limits and confirmations from the operator.
Sources and legal acts (selection)
- R&D: podatki.gov.pl
- IP Box: podatki.gov.pl, podatki.gov.pl
- Expansion: podatki.gov.pl
- Prototype: podatki.gov.pl
- Robotization: podatki.gov.pl
- Sponsorship: podatki.gov.pl
- “Cashless taxpayer”: podatki.gov.pl, gov.pl
- Rates and small taxpayer status: podatki.gov.pl, CIT Act, PIT Act
- One-off depreciation: CIT art. 16k, PIT art. 22k
- Bad debt relief (MF information): gov.pl
- Estonian CIT: podatki.gov.pl
Need support in selecting and settling reliefs? Progress Holding will conduct a relief audit, prepare records, and settle returns. Call: +48 603 232 418 or write: office@progressholding.pl.
