IP BOX

IP BOX

IP Box is a corporate and personal income tax preference effective from 2019, which provides for the application of a preferential tax rate of 5% to income earned by the taxpayer under so-called qualified intellectual property rights.

According to the Act, the qualified intellectual property rights include copyrights in computer software manufactured, improved or developed
as part of the taxpayer’s research and development (R&D) activities, allowing IT entities developing innovative solutions to benefit from this relief.

The preferential tax rate may be applied in particular to income from the licensing of software or the transfer of software copyrights or the inclusion of software in the sales price of a product or service.

One of the key aspects to benefiting from IP Box is proper identification, documentation and recording of the copyright in computer software and the forms of its commercialisation and the R&D activities carried out, as well as identification of eligible costs in the accounting records.

The services offered include:

• A tax review of the Client’s eligibility to apply IP Box and recommendations on the steps needed to implement this solution.
• Support in obtaining external expertise (if necessary) to confirm conducted R&D activity.
• Preparation of applications for individual interpretations (depending on the results of the 1st stage and arrangements with the Client).
• Support in implementation.
• Support in the event of a possible tax audit on the application of IP Box.