The concept of IP Box („Intellectual Property Box”, also referred to as „Innovation Box” or „Patent Box”) refers to the possibility of using the preferential 5% tax rate introduced in Poland from January 1, 2019 in relation to income obtained from the so-called qualified intellectual property rights.

One of the basic objectives of the introduction of the IP Box was to increase the attractiveness of conducting research and development activities by companies and entrepreneurs who are natural persons, as well as the creation and development of rights constituting qualified intellectual property rights that are suitable for commercialization.

The introduction of the IP Box is a solution that allows for a functional closure of the research and development process conducted by taxpayers and for making the stage of commercialization of the results of these works more attractive, thanks to the application of a preferential (5%) tax rate for income obtained from such rights.

IP Box as a solution related to the promotion and commercialization of intellectual property rights is not a new solution on the international market. Similar solutions have been used by countries such as Great Britain, Luxembourg, France, the Netherlands, Ireland and Slovakia for many years.

Who can take advantage of the IP Box relief?

The IP Box can be used by both corporate income tax (CIT) and personal income tax (PIT) taxpayers, except for those who have chosen lump sum taxation.

A prerequisite for taking advantage of the IP Box relief is that a given entity conducts research and development activities that will result in the creation, improvement or development of the so-called qualified intellectual property rights. Income derived from such rights may be taxed at a reduced CIT rate 5% under the IP Box.