INCREASED DEDUCTIBLE COSTS FOR AUTHORS

INCREASED DEDUCTIBLE COSTS FOR AUTHORS

Entrepreneurs have the option to apply 50% of the deductible costs to part of the remuneration under employment contracts due to employees who create works within the meaning of copyright law as part of creative activities in the field of computer software or research and development activities.

Implementing the aforementioned remuneration scheme has the economic effect of giving employees a raise without increasing the employer’s costs on this account.

The aforementioned remuneration scheme is partly based on the introduction of a split of remuneration under employment contracts (separating part of remuneration for the transfer of copyrights)

One of the key aspects to benefiting from increased deductible costs is the implementation of appropriate documentation (including amendments to employment contracts), procedures for archiving and accepting the results of creative work and rules for valuing the results of creative work.

The services offered (tax and legal support) include:

• Legal and tax review of the eligibility to implement the above remuneration scheme with regard to the Client’s activity.
• Identification of the Client’s research and development activities or creative activities in the scope of computer software.
• Support in the preparation of required procedures and documentation (including necessary amendments to employment contracts).
• Training employees.
• Support in the event of a possible tax audit on the application of increased deductible costs.