In the information age, where technology is developing at a dizzying pace, business leaders see digitisation not as an option, but as an indispensable element of strategy that determines the survival and development of their businesses.
The pandemic accelerated digital transformation on an unprecedented scale. Companies had to quickly adapt their operating models to the new reality. In many cases, this meant moving customer interactions to the virtual space, implementing tools that enable remote work for employees, and accelerating digitalisation processes to maintain the continuity of operations.
The change in companies’ approach to digitalisation as a result of the pandemic is highlighted by the results of EY’s Digital Transformation 2024 survey. In 2020, the percentage of companies indicating that transformation programmes were a high priority in their organisation was only 38%. This has now increased by 46 percentage points to 84%.
Although the digital transformation process has a number of benefits for businesses, it is challenged by the high cost of implementation.
The answer to these challenges may be available grants and tax reliefs. The government and financial institutions continue to offer a variety of aids, recognising that investments in digital technologies are crucial for long-term growth and innovation. With these measures, companies can plan and implement digital strategies with greater financial certainty and stability, allowing them to not only survive in the present times, but also grow and thrive in the future.
The most important instruments supporting the development of digitisation in enterprises are set out below.
Subsidies from European funds
Despite the ending of some calls for proposals for measures to support automation and digitisation, firms can still apply for support under the next calls for proposals:
- Grants for digitisation (DIG.IT) – programme for micro-businesses and SMEs
We wait for the announcement of a call for applications aimed at supporting digital transformation in the following areas:
- Production process or production services
- Processes directly supporting production processes or production services (such as design, engineering work, technical tests, storage of own products/materials, production line supply, acceptance of finished products from production, quality control of products, or production services)
- Support for the purchase of modern digital technologies in connection with their implementation (including employee training and promotional activities).
Support will be available to investments in the following areas:
- Process automation and business intelligence
- Leverage artificial intelligence and machine learning
- Digital sales and customer contact
- Cybersecurity
- Use of cloud solutions
- Enterprise resource management with the use of IT solutions.
Other assumptions of the programme known at the moment are:
- Grant to be paid as part of de minimis aid (subject to the available de minimis pool for the firm)
- Value of the requested grant: 150,000 – 850,000 złotys
- The level of support is up to 50% of the eligible costs of the project.
- European Funds for Eastern Poland – Automation and robotisation in SMEs
Currently, the call for proposals to support automation and digitisation processes under the European Funds for Eastern Poland programme has just ended; the next call is scheduled for April 2025 with an allocation of 100 million złotys.
The support is addressed to micro-businesses and SMEs operating in the following voivodships: Lubelskie, Podkarpackie, Podlaskie, Świętokrzyskie, Warmińsko-Mazurskie, Mazowieckie (with the exception of the Warsaw region).
The aim of the programme is to carry out a technological audit/diagnosis of the company’s digital maturity and to develop a roadmap for transforming it towards Industry 4.0, and to implement activities related to the automation and robotisation of processes resulting from the this roadmap, which will result in the implementation of innovations in the production process.
- European Funds for Smart Economy – SMART Path
The call for applications for individual businesses (large firms and SMEs) is open until 24 October 2024, and then from 10 January to 28 March 2025, a call for applications for consortia is planned. Another call for applications for individual firms is likely to be announced next year.
This competition aims to support R&D activities, an indispensable element of the digital transformation of companies. The competition may also include the ‘Digitisation’ module, which aims to digitally transform production and service activities, business model, processes in the company, and to ensure cybersecurity.
- Regional Programmes
Regional Programmes offer support for firms involved in innovation and R&D activities.
Below is a list of upcoming competitions for some voivodships:
Voivodship | Action | Support area | Competition dates |
Świętokrzyskie | 1.2 Support for business activities in the field of R&D | Support for R&D works | 26 August – 7 October 2024 |
Warmińsko-Mazurskie | 01.02 R&D+I activities of enterprises | R&D activities of businesses | 30 September – 31 October 2024 |
Wielkopolskie | 1.2 Support for R&D activities of enterprises and consortia of enterprises with research organisations, including in the field of R&D infrastructure | Support for R&D activities of enterprises and consortia | 9 September – 8 November 2024 |
Wielkopolskie | 10.2 Support for investment in SMEs and large enterprises | Support for SME activities | April 2025 |
Podkarpackie | 01.01 R&D | Support for R&D activities | 30 September – 15 November 2024 |
Opolskie | 1.9 Implementation of R&D by SMEs | Implementation of the results of R&D work by SMEs | 31 October – 21 November 2024 |
Zachodniopomorskie | 1.1 Comprehensive R&D projects of enterprises | Support for R&D activities | 30 September – 29 November 2024 |
Małopolskie | 1.1 R&D projects of enterprises | R&D work with preparation for implementation | 21 August 2024 – 7 January 2025 |
Łódzkie | 1.2 Business investment in research and innovation | Construction, reconstruction, expansion, modernisation of R&D infrastructure in enterprises | December 2024 – January 2025 |
Łodzkie | 1.5 Competitiveness of SMEs | Implementation of solutions towards Industry 4.0 | 26 September 2024 – 8 November 2024 |
Dolnośląskie | FEDS.09.04 Economic transformation | Investments in R&D activities and implementation of innovations | 20 December 2024 – 30 January 2025 |
Lubelskie | 1.2 Infrastructure supporting the technological development of enterprises | Support for R&D infrastructure in enterprises and building the capacity of innovation centres | January – February 2025 |
Lubelskie | 1.3 Research and innovation in the business sector | Implementation of the results of R&D work and innovation by SMEs | April – May 2025 |
Śląskie | 1.2 Research, development and innovation in enterprises | Implementation of the results of R&D work – support for large enterprises and SMEs | March – April 2025 |
Tax relief
- R&D tax relief
As mentioned in the context of grants, the digital transformation of firms often involves the need to carry out R&D work. To support these processes, the R&D tax relief, which is already well known, may be used, which allows for the deduction from the tax base of part of the tax-deductible costs incurred for R&D activities.
In the case of digital transformation work, which often requires companies to develop new, automated processes, it’s possible to deduct up to 200% of the salary costs of employees involved in these processes. R&D relief requires the implementation of works that are new only on the scale of the firm.
Examples of works which may qualify for R&D relief are:
- Developing concepts for digital solutions
- Determining the technical parameters and functions needed for the designed digital solution
- Designing digital solutions
- Creating prototypes, testing of prototypes.
Example:
In the case of an R&D project carried out in 2022 for six months, involving five programmers (employed under an employment contract and receiving an average monthly remuneration of 20,000 złotys) who develop a system for the digitising the company’s production process and five technologists (employed under an employment contract and receiving an average monthly remuneration of 7,000 złotys) who test the implementation of this solution on a technological line, engaged for 60% of their working time exclusively in R&D processes, a total of 972,000 złotys of salary costs can be deducted.
Programmers: (five persons x 20,000 złotys x six months x 60%) x 200% = 720,000 złotys
Technologists: (five persons x 7,000 złotys x six months x 60%) x 200% = 252,000 złotys.
- Robotisation relief
The robotisation relief consists in an additional deduction of 50% of tax-deductible costs incurred for robotisation from the tax base. The relief can be used by companies that use industrial robots to improve production. In addition to the costs of industrial robots and machinery and peripherals for these robots and robot-related machinery and equipment, the costs of acquiring intangible assets necessary for correctly commissioning and accepting industrial robots based on advanced digital technologies and machine learning, which enable robots to operate automatically and autonomously, are also eligible for support.
In summary, digitisation processes are currently the foundation on which the development of enterprises in the dynamically changing business world is based. Investments in new technologies, automation and digitisation of processes are no longer a choice, but a necessity to remain competitive and not to be left behind by more innovative market players. The use of tax breaks and subsidies is inevitable and a key part of the development strategy, enabling companies to mitigate the financial risks associated with investments in digitalisation. This financial support facilitates the transition through the digital transformation process, providing a solid foundation to explore the new opportunities that the digital age brings. Companies that make effective use of available resources and support will not only be able to survive in today’s realities, but also achieve sustainable growth and success in the future.
