The IP BOX

Do you generate revenue from patents or other intellectual property rights? Do you operate in a sector such as biotech, pharma or IT?

IP
BOX

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.

Why is it worth considering?

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.

Are you interested in current changes in regulations? Check updates

Do I need it?

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:

Copyrights to software
Utility models
Industrial designs
Topographies of integrated circuits
Supplementary protection certificates for medicinal products or plant protection products
Exclusive rights to new plant varieties
Marketing authorization for medicinal products or veterinary medicinal products
Patents

See the IP BOX in practice

In January 2021 a taxpayer conducts R&D and creates a qualified intellectual property right, thus meeting the basic conditions for claiming the IP Box relief.

Can the taxpayer thus apply the 5% income tax rate?

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Our Offer

If you are wondering whether you meet all the conditions to qualify for the 5% tax rate under the IP Box, contact us and benefit from the experience of the experts from KR Group. Our support:

We offer assistance in applying for an individual tax interpretation confirming the possibility of claiming the IP Box.
We provide support during inspections or audits that may be conducted by the tax office in connection with requests for a tax refund or to apply tax payments toward future obligations.
We also have a wealth of experience drafting and reviewing contracts as well as IP Box records.

Contact

Łukasz Kempa

Head of Tax Advisory, Tax Advisor

l.kempa@krgroup.pl

(+48) 539 677 518

FAQ

Can the IP Box be claimed for tax year 2019?

It is possible to claim the IP Box for 2019, but all the mandatory conditions must be fulfilled.

Must IP Box records be maintained on a current basis?

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.

Does claiming the IP Box mean that the taxpayer will pay monthly income tax advances at the 5% rate?

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.

Instead of a refund, can the taxpayer request that the IP Box overpayment be applied toward future tax obligations?

Yes. Instead of a refund, the taxpayer can request that the overpayment be applied toward future tax obligations.