Apply a preferential 5% tax rate! IP Box explained!

The Ministry of Finance has finally published long-awaited tax explanations to the IP BOX system effective from 1 January, enabling the taxation of a preferential 5% CIT/PIT rate on selected revenues from Intellectual Property Rights (IPR).

Combined with the relief for research and development, it is one of the most interesting tax support packages in Europe for innovative activities. It can be used by taxpayers who conduct research and development activities in Poland, as a result of which they will develop protected solutions, with the so-called qualified IPRs (including patent, utility model, industrial design, property right to use a computer program). It is important here that not only the revenues from sales of IPRs are lower taxed, but also revenues from licenses for them, or revenues in this respect included in the price of the product or service. What is also important is that the preference is not due from the moment of acquiring protection (e.g. patent), but already from the moment of submitting an appropriate application for it.

Despite the fact that they have been in force since the beginning of the year, these provisions raised a number of doubts among taxpayers who refrained from the implementation of this solution. Explanations address a number of them, enabling taxpayers to take measures aimed at inclusion in the settlement for 2019 of a reduced tax rate on income from qualified IPRs. Although there is a lot of time left until the deadline for filing tax returns for 2019, it is worth to get ready to take advantage of this preference. In particular, the explanations shed a new light on the use of the IP BOX in IT companies, or on issues related to the IP BOX connection using the R&D relief.

Those interested in new possibilities in this regard are already invited to our tax breakfast/webinar on 7th August 2019 at 10:00 and to direct contact.

Back to