Reducing of the tax base in assessment of the net income

In assessment of the net income out of copyrights and industrial property rights, the following expenditures are allowed:

• 60% from the gross income – for sculptural works, tapestry, ceramic-plastics, artistic ceramics and stained glass.
• 50% from the gross income – for artistic photography, wall painting and painting in space: fresco, graphic, mosaic, moulding, enamel, moulding and enamel things, creations and artistic processing of textile (weaved textile, printed textile and the same).
• 50% from the gross income – for paintings, graphic works, industrial modelling by producing models, small plastic, artistic solutions for scenography, scientific, technical and publicist works, translation of literary, musical and cinematographic works, and restoration and preserver works in the area of art and culture.
• 30% from the gross income – for works of art in the area of serious music, ballet, opera and film-act, for recitation, movie recording and design for tapestry and costimography.
• 30% from the gross income – for translations (except translations of literary works), lectures and similar intellectual works.
• 25% from the gross income – for performing stage programs of popular and folk music.
• 25% from the gross income – for other author’s and industrial property works, which are not mentioned in the previous provisions.
• Real expenditures (instead standardized expenditures) which on demand of the taxpayer they will be proved documented.

In assessment of the net income out of copyrights and industrial property rights for sculptural works, paintings, graphical, tapestry and other works from the applied art, on exhibitions realized out of the taxpayers’ residence, besides the expenditures foreseen in the Article 41 from the Law on PIT also are deducted the expenditures for transport of the works, travel costs as well as the costs for stay in the place of the exhibition, until it lasts, in the amount of the highest daily allowances determined by the appropriate regulations.

Recognized costs in the net income assessment out of patents and signs of difference аre the following:

• The fees and costs paid for patents protection, according to the certificate of the authorized body for patents protection;
• The costs for making the draft and technical description of the patent and the sign of difference that were part of the return with which from the authorized body is requested protection of the patent and the sign of difference, according to the certificate of the professional who performed the drafts and technical descriptions. The opinions for the reality of these costs are issued by the organization registered for representation of the authors; and
• The costs for production of a prototype necessary for testing the patent which is registered i.e. protected. If the prototype is made in the company i.e. institution, the certificate for the costs about the production is issued by the maker. If the prototype is made by the inventor himself, the real costs are admitted, and the opinion for the costs reality is issued by the appropriate organization registered for authors’ representation.