IP Box - even more benefits

The application of the tax relief related to research and development works carried out in 2016 makes it possible to charge up to 130% of the so-called ‘eligible costs’ to tax deductible expenses, by recognising their actual value as a tax deductible expense and then by applying a deduction from the tax base again from 10% to 30% of these costs.

At the beginning of 2019, the legislator introduced another preference related to research and development for income tax payers.

Pursuant to the new regulation, the tax on qualified income earned by a taxpayer from qualified intellectual property rights is only 5% of the tax base.

The preferential tax rate applies to the income from the so-called eligible property rights.

The catalog of eligible property rights includes:

• the right to an invention (patents),
• protection right for a utility model,
• right from registration of integrated circuit topography,
• additional protection right for a patent for a medicinal product or a plant protection product,
• the right to register a medicinal product and a veterinary medicinal product admitted to trading,
• copyright to a computer program.

Who can take advantage of the IP Box discount:

The IP Box relief is available to taxpayers (natural and legal persons) who obtain the following types of income from the so-called qualifying intellectual property rights in the tax year:

• fees or charges under a license agreement that relates to a qualifying intellectual property right;
• from the sale of a qualified intellectual property right;
• from the qualifying intellectual property right included in the selling price of the product or service;
• from compensation for the violation of rights arising from qualified intellectual property rights, if obtaied in a dispute, including court or arbitration proceedings.

Scope of services offered:

• identification of intellectual property rights in terms of assessing the possibility of applying the IP Box relief,
• analysis of the tax and accounting policy and other internal documents in terms of introducing possible adjustments,
• developing a procedure for qualifying and recording qualified revenues and costs from the balance sheet and tax perspective,
• securing the adopted rules of using the relief by drawing up applications for individual interpretations,
• periodic audit to verify the correct application of the IP Box tax relief and to adjust it to changes in regulations and case law,
• assistance in showing the eligible income of intellectual property rights in the tax return, including the calculation of the nexus ratio,
• supporting the taxpayer in contacts with tax authorities in all matters related to verifying the correctness of the IP Box relief applied.

We provide Relief related to research and development works, IP BOX and other services throughout Poland in regional offices in Warsaw, Łódź and Poznań, Opole, Wrocław, Katowice, Lublin, Gdańsk and Zielona Góra.