As of January 1, 2019, any entity creating innovative projects is eligible for the IP BOX (IP abbreviation: intellectual property) tax relief. This allows taxpayers to apply a preferential 5% rate.
The relief can be used by almost any entity that conducts innovative activities that result in obtaining:
- patent,
- protection right for a utility model,
- rights from registration of an industrial design,
- rights from registration of the topography of an integrated circuit,
- additional protection right for a patent for a medicinal product or plant protection product,
- rights from the registration of a medicinal product and a veterinary medicinal product admitted to trading,
- the exclusive right to a plant variety, referred to in the Act of 26 June 2003 on the legal protection of plant varieties (Journal of Laws of 2018, item 432),
- copyright right to a computer program.
In order to benefit from the relief in question, it is necessary for the eligible IP to be created, developed or improved as part of the research and development activities conducted by the taxpayer, which in practice means that the product must be innovative.
A preferential tax rate (5%) applies to income from fees or charges arising from a licensing agreement or from the sale of intellectual property (e.g., a patent, industrial design, software, etc.). Other income (e.g., from the provision of services) is subject to taxation according to general rules.
How can we help?
Although the above conditions may seem complicated, most companies conducting innovative activities can benefit from this relief. This applies to both companies and individual businesses. We are ready to assist each of them in the following areas:
- Development of a procedure for implementing IP BOX and legal support in implementing the procedure,
- Preparation of an application for an individual interpretation,
- Preparation of calculations, records and appropriate declarations and tax returns,
- Legal support in the process of protecting intellectual property rights (e.g. obtaining a patent or other protective right).
