IP BOX TAX RELIEF

- reduced tax for developers -

WHY TAKE ADVANTAGE OF IP-BOX TAX RELIEF

TAX REDUCTION

You will benefit from a reduced 5% tax rate

THE PROFITABILITY OF INVESTING

Increase the profitability of investing in IP solutions

WHAT WE WILL DO FOR YOU

LET'S CHECK THE CONDITIONS

Let us check if your business qualifies for IP BOX relief

WE WILL SUBMIT AN APPLICATION

We will apply for an individual tax interpretation of the IP BOX relief

WE WILL PROVIDE YOU WITH INVALUABLE ADVICE

We will advise you on how to account for IP BOX relief on an ongoing basis

WHO MAY BENEFIT FROM OUR SERVICES

IP BOX is a tax preference designed for anyone who conducts research and development activities and derives income from, among other things, a computer program or patent they have created. Income from so-called qualified intellectual rights is subject to a 5% income tax rate.

The IP Box preference is a solution that the taxpayer can use after the end of the tax year in the annual return. During the tax year, taxpayers pay advance tax payments at the general rate (9% or 19% – CIT taxpayers, 17%/32% – tax scale or 19% – PIT taxpayers ). A taxpayer who meets the conditions set forth in the IP Box regulations shall declare in his annual return the amount of income from qualified IP separated from the general income earned during the tax year. The taxpayer then applies a 5% tax rate instead of the general rate to qualified IP income.

The most important requirements to be met for IP BOX relief include:

  • carrying out research and development activities;
  • the creation of qualified IP (qualified intellectual property rights) in the course of research and development activities;
  • keeping separate records of business events covering all financial operations related to income from qualified IP, in accordance with Article 24e(1)(1) of the CIT Law and Article 30cb(1)(1) of the PIT Law;
  • earning income from qualified IP that is taxable in Poland;
  • incurring eligible costs in connection with the creation, development or improvement of qualified IP.

Qualified intellectual property rights subject to IP BOX relief include:

  • patent,
  • the right of protection for a utility model (a utility model includes, for example, new functions of a piece of furniture or a technical way of making it),
  • the right to register an industrial design (an industrial design includes, for example, a different shape, color, etc., such as a piece of furniture),
  • the right from registration of integrated circuit topography,
  • supplementary protection right for a patent on a medicinal or plant protection product (obtaining a patent is a lengthy process, so in the case of drugs (active particles), a supplementary protection right is used to extend patent protection),
  • the right from registration of a medicinal product and a veterinary medicinal product authorized for marketing,
  • the exclusive right referred to in the Law of June 26, 2003 on legal protection of plant varieties (Dz. U. [Journal of Laws] of 2018, item 432),
  • copyright of a computer program.

WHY US

WE ARE A REPUTABLE LAW FIRM

We are a reputable law firm

WE HAVE BIG EXPERIENCE

We have extensive experience in tax consulting

WE ARE EXPERTS

We are well prepared in terms of content

WE APPROACH EACH CASE INDIVIDUALLY

We will handle your case individually and professionally

FAQ

IP BOX is a tax preference designed for everyone who carries out research and development activities and earns income from their own computer program or patent, among others. Income from so-called qualified intellectual property rights is subject to a 5% income tax rate.

The main requirements that must be met in order to benefit from the IP BOX relief include:

  • Conducting research and development activities;
  • Creating qualified intellectual property (qualified IP) as part of the conducted research and development activities;
  • Keeping separate accounting records covering all financial transactions related to income from qualified IP, in accordance with Article 24e(1)(1) of the Corporate Income Tax Act and Article 30cb(1)(1) of the Personal Income Tax Act;
  • Earning income from qualified IP subject to taxation in Poland;
  • Incurring qualified costs related to the creation, development, or improvement of qualified IP.

The IP Box preference is a solution that the taxpayer can use after the end of the tax year in the annual tax return. During the tax year, taxpayers pay advance payments of tax at the general rate (9% or 19% for CIT taxpayers, 17%/32% – tax scale, or 19% for PIT taxpayers). A taxpayer who meets the conditions specified in the IP Box regulations declares in the annual tax return the amount of income from qualified IP separated from the general income earned during the tax year. Then, for the qualified income from qualified IP, the taxpayer applies a 5% tax rate instead of the general rate.

Income from so-called qualified intellectual property is subject to a 5% income tax rate.

MEET OUR TEAM

TOMASZ MADEJCZYK
LEGAL ADVISOR

Graduate of the Faculty of Law and Administration of the University of Lodz

MIKOŁAJ DUDA
Tax Advisor

A graduale of the Law and Administration Faculty of the University of Łódź.

DAWID ĆWIKLAK
Legal Counsel

Graduate of the Law Faculty of the University of Łódź.

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