IP-BOX – Relief not only for programmers
The IP-BOX relief is a special tax relief for entrepreneurs who conduct activities related to the creation or use of intellectual property rights. This relief was introduced to encourage innovative companies to invest in research and development and promote technological development in the country.
What is the IP-BOX relief?
This relief consists in the fact that income from the so-called qualified IP (intellectual property) are taxed at a preferential rate of 5%. Qualified intellectual property rights under PIT and CIT regulations are:
patent,
protection right for a utility model,
right to register an industrial design,
law from registration of the topography of an integrated circuit,
additional protection right for a patent for a medicinal product or plant protection product,
right to register a medicinal product and a veterinary medicinal product admitted to marketing,
exclusive right referred to in the Act of 26 June 2003 on the legal protection of plant varieties,
copyright to the computer program
subject to legal protection under the provisions of separate acts or ratified international agreements to which the European Union is a party, the subject of protection of which was created, developed or improved by the taxpayer as part of his research and development activities.
Who is the IP-BOX relief for?
The right to tax the income obtained from qualified IP at a 5% tax rate does not depend on the size of the entity or the form of its research and development activities. Research and development work does not have to be carried out by the taxpayer in its own research and development centers (not every taxpayer has such centers). The IP-BOX relief is available to both PIT taxpayers, i.e. persons running sole proprietorships, civil partnerships, general partnerships or professional partnerships, as well as CIT taxpayers: legal persons or capital companies.
It should be noted that all research and development activities that meet the statutory criteria are eligible for the IP-BOX relief, and not only IT activities, although this relief is the most popular among IT specialists. If you need advice, ask ASK.
Assistance from an accounting office in settling the IP-BOX tax relief
ASK-Audit provides comprehensive and professional services in the field of settlement and preparation of the taxpayer to take advantage of the IP-BOX relief. We believe that the key to success is a consistent approach to determining what a taxpayer’s qualified IP is and its subsequent correct settlement in annual returns. We can support the taxpayer in the following issues related to IP-BOX:
determining whether the generated IP qualifies for the IP-BOX relief,
applying to the tax office with an individual interpretation as to the eligibility of a given IP before incurring the costs.
keeping accounting records in a way that ensures the determination of revenues, costs and income attributable to each eligible intellectual property right.
Calculation of the NEXUS indicator on an ongoing basis,
preparation and submission of the annual PIT/IP declaration
Are you looking for an accountant to manage your affairs in the IP-BOX area? The team of the ASK-AUDIT accounting office will take care of your needs and professionally manage your company’s settlements. Please contact us directly and ask ASK for advice.
