Get free access to
The IP Box (Innovation Box or Patent Box) is a preferential taxation of income derived from legally protected intellectual property rights. This relief allows for the 5% income tax rate. It applies to both CIT and PIT taxpayers (with the exception of flat-rate taxpayers).
However, the application of such the preferential tax rate requires the fulfilment of conditions specified by the legislator. In order to determine whether a taxpayer may benefit from the IP BOX, the following three conditions must be met:
The IP BOX relief is provided for taxpayers who conduct research and development activities (R&D activities). A taxpayer wishing to benefit from the IP BOX must first verify whether it carries out R&D activities that result in the creation, improvement or development of so-called qualified intellectual property rights.
The next step is to verify whether the intellectual property rights held belong to one of the following categories:
In addition, one of the above intellectual property rights must be created, developed or improved by the taxpayer.
The IP Box relief covers income received:
Receiving one of the above-mentioned incomes and fulfilling the previous conditions entitles you to use the IP BOX.
Calculating what proportion of the income received by a taxpayer is subject to the IP BOX is not an easy matter. In order to do so, the income from IP rights and the nexus factor for each IP right must be calculated.
The calculator below has been created in order to facilitate the calculation of the tax with IP BOX and to indicate what tax saving this entails.
Our calculator has been set for simulation purposes only and might not include all factors that determine the end result, according to the Polish laws.
Accace is not responsible for any person’s or entity’s decisions taken based on the results of the calculator. Before taking any action, we recommend you consult a VAT specialist in Poland.