The Rulebook prescribes several obligations for the employer that is eligible for this tax exemption.
Keeping Separate Records
A company that uses the new R&D incentive is obliged to keep separate records for each employee engaged in research and development activities and for whose earnings the company claims the exemption, and where all information necessary for tracking the fulfillment of conditions for the abovementioned incentive are stored. Specifically, they are:
- information on the employee’s working hours,
- information on the salary, salary compensation, and other incomes of the employee.
Keeping Separate Documentation
In addition to records for each employee, the R&D employer is obliged to keep the specific documentation for every individual project at the company seat, which includes, among others:
- project specification with outlined goals and project phases,
- annual project budget and the total amount of the approved budget,
- report of the employee on research and development, containing the specification on the total working hours spent on research and development jobs on a specific project,
- report on the results of the project.
It is useful to know that after the documentation is collected, it is kept at the employer’s seat and submitted to tax administration only in case of inspection – at the government body’s demand. Therefore, there is no need for you to self initiatively submit the documents to the tax authorities once you start using the benefit.