The IP Box (or Innovation Box) is a preferential form of taxation of income introduced in 2019. The relief is targeted primarily to enterprises whose income is derived from innovative research and development activity. To date, the IP Box has enjoyed the greatest popularity among programmers operating individual businesses.
The IP Box constitutes a form of preferential taxation of income generated by intellectual property rights. The IP Box can be claimed by payers of both corporate income tax and personal income tax. In the case of PIT payers, there is one exception: the IP Box cannot be claimed by taxpayers electing taxation in the form of a flat rate on recorded revenue.
Moreover, taxpayers entitled to apply the IP Box are required to maintain detailed IP Box records enabling revenue and costs to be allocated separately to each QIPR.
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The IP Box is addressed to enterprises and persons directly involved in R&D who are also owners, co-owners or users of qualified intellectual property rights (QIPRs).
The fixed catalogue of QIPRs covered by the IP Box includes:
It is possible to claim the IP Box for 2019, but all the mandatory conditions must be fulfilled.
As a rule, records for purposes of the IP Box do not have to be maintained on a current basis, because the regulations do not contain such a requirement, but this does not release the taxpayer from the duty to collect all information related to the Innovation Box.
No. The IP Box is a form of annual relief. This means that the taxpayer must pay advances each month at the standard income tax rate, and then apply for a tax refund.
Yes. Instead of a refund, the taxpayer can request that the overpayment be applied toward future tax obligations.