R&D activities in Poland and Germany is a topic that increasingly comes up in cross-border decisions. This concerns both the choice of jurisdiction for conducting research and planning the commercialisation of results.
Both countries offer a wide range of instruments to support innovation. However, their legal and fiscal design is based on different systemic assumptions.
Below is a comparison of key solutions from the perspective of entrepreneurs, start-ups and those commercialising research results.
Why does the comparison of R&D systems matter to entrepreneurs?
Research and development is today one of the most important areas of competitiveness for European economies. Both Poland and Germany offer extensive instruments to support innovation. However, they differ in their regulatory philosophy.
In Poland, tax credits and European funds play a central role. In Germany, on the other hand, the focus shifts to a uniform tax allowance combined with an extensive system of national grants and market-based technology transfer.
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R&D tax relief and IP Box - Polish tax system for R&D
In the Polish tax system, the basic instrument for supporting R&D activities is the R&D tax credit. It is regulated in the Corporate Income Tax Act and the PIT Act.
This mechanism allows for an additional deduction from the tax base of eligible costs incurred for research and development activities. These costs must relate to activities of a creative nature, carried out in a systematic manner and aimed at increasing the stock of knowledge.
A key practical requirement is:
- separation of R&D costs in accounting records
- the actual carrying out of research and development projects (not routine or reproductive activities)
The Ministry of Finance repeatedly emphasises that the decisive factor is the actual nature of the work carried out and not its formal qualification.
The R&D relief is complemented by a preference IP Box. It allows income from qualified intellectual property rights to be taxed at the rate of 5%. The application of this preference requires that the right in question (e.g. a patent or a computer program) has been created as part of research and development activities. In addition, the taxpayer must keep detailed records according to the so-called nexus rate.
In practice, the IP Box is an instrument aimed at entities that have completed the research phase and generate revenues from the commercialisation of R&D results.
An additional element of the Polish system is relief for innovative employees. It allows a partial utilisation of the R&D allowance by accounting for PIT advances on the salaries of those involved in R&D projects. In this way, it improves the ongoing liquidity of companies.
Forschungszulage - German tax system to support R&D activities
In Germany, the tax approach to R&D activities is much more concentrated. The only nationwide tax instrument is the Forschungszulage, introduced by the Forschungszulagengesetz.
This relief is in the nature of a tax credit. It allows a part of the eligible costs to be reimbursed regardless of whether the company makes a profit.
The condition for benefiting from Forschungszulage is:
- implementation of an eligible research project (fundamental, industrial or development research)
- obtaining a substantive certificate from the Federal Office for Scientific Research Certification (BSFZ)
Only after obtaining the certificate can the taxpayer settle the relief before the competent tax office.
There is no equivalent to the IP Box in the German system. Income from intellectual property is generally subject to taxation under the general rules.
Despite the need for administrative notification, the German system may mean more support for start-ups carrying out innovative activities. This is because these entities do not lose the possibility of accounting for costs under the general rules. At the same time, they can obtain additional reimbursement of eligible costs even if they have recorded a tax loss in a given year.
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R&D subsidies - Poland vs Germany
Significant differences are also apparent in the area of innovation grants and subsidies.
Poland - European Funds and the SMART Path
In Poland, the primary source of funding for R&D projects is the European Funds for a Modern Economy 2021-2027, which is implemented by, among others, PARP and the National Centre for Research and Development.
Particularly important is the so-called. SMART path, allowing the realisation of modular projects combining:
- research and implementation
- development of R&D infrastructure
- digitisation
- internationalisation
Support is conditional on demonstrating innovation on at least a national scale, compliance with smart specialisations and meeting cost eligibility criteria.
Germany - ZIM, KMU-innovativ and start-up programmes
In Germany, the subsidy system is more diverse. The key programme for SMEs is Zentrales Innovationsprogramm Mittelstand (ZIM). It supports R&D projects with clear market potential, including those of young technology companies.
From 2025, a new ZIM guideline is in place to simplify procedures and make support more accessible.
The ZIM is complemented by the initiative KMU-innovativ - a set of thematic competitions aimed at SMEs implementing projects with a high level of innovation, particularly in the areas of:
- artificial intelligence
- medical technology
- green transition
In the area of academic commercialisation, the programme of EXIST (creation of start-ups from universities and institutes) and a programme of GO-Bio (biotechnology and life sciences, where the technology development cycle is long and capital-intensive).
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Commercialisation of research results - differences between Poland and Germany
An equally important element of the innovation support system is the rules for the commercialisation of research results.
Poland - Statutory regulation
In Poland, this process is primarily regulated by the Law on Higher Education and Science. Public universities and research institutes are, in principle, the owners of the rights to research results. At the same time, the law obliges them to commercialise - either directly (licensing, sale of rights) or indirectly (spin-off and spin-out companies).
Detailed rules are set out in the internal regulations of the university. The legal basis for the circulation of intellectual property is also provided by the Industrial Property Law, the Copyright Law and the Commercial Companies Code.
Germany - contractual and market-based approach
In Germany, commercialisation is more contractual in nature. The key piece of legislation is the Employee Inventions Act (Arbeitnehmererfindungsgesetz). It regulates the status of inventions made by employees, including scientists employed at universities.
In principle, the rights to the invention belong to the employer. In turn, the creator is entitled to appropriate remuneration. Further commercialisation mainly takes place through licensing agreements with industry or the selective creation of spin-offs supported by grant programmes.
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The EU State aid framework and R&D activities
Both Polish and German support instruments operate within the framework of EU state aid law. Of key importance is the Commission Regulation (EU) No 651/2014, the so-called 'State Aid Regulation'. GBER.
This regulation sets out the conditions under which state aid for research and innovation may be granted without notification to the European Commission. In particular, the GBER:
- introduces the concept of incentive effect
- defines eligible costs
- sets the maximum aid intensity depending on the type of research
- regulates the rules on the accumulation of grants and tax credits
In practice, this means that any R&D project benefiting from public funding requires an analysis of more than just national rules. Equally important is compliance with the EU state aid framework.
The regulation expands the scope for ambitious innovation policies in the Member States. As a result, it leads to competition between jurisdictions. Young researchers and technology companies should take into account the existing differences in their business plans.
R&D activities in Poland and Germany - which jurisdiction to choose?
Poland offers entrepreneurs a wide range of tax and grant instruments to optimise R&D activities at different stages of development. In contrast, Germany focuses on a single tax instrument and an extensive grant system and market-based technology transfer.
The choice of jurisdiction should always be preceded by an in-depth legal, tax and business analysis. Both national regulations and EU state aid rules should be taken into account.
Planning R&D activities abroad? Contact us
If you are planning to embark on research work or transfer knowledge and capital abroad, it is worth enlisting the help of lawyers who understand the differences between jurisdictions.
BKT International Law Firm will assist you in:
- safeguarding know-how
- analysis of licence agreements
- disputes with grant awarding authorities
- choosing the optimal legal and tax structure
Contact us: https://bktkancelaria.pl/kontakt/
