Handling of IP BOX clearing companies

IP BOX relief

For companies earning income from the intellectual property (IP) rights created as a result of research and development, it is worthwhile to ensure the appropriate VAT rate. To this end, entrepreneurs can take advantage of the IP BOX relief.

This is an extremely favorable form of taxation for entrepreneurs conducting research and development, not only because of the tax savings. In addition, the value of the tax paid can be optimized by using another mechanism, the research and development tax credit, i.e. the possibility of double deduction of costs incurred directly for development work and scientific research.

Handling of companies applying for IP BOX relief

Among other things, it is the duty of IP BOX relief beneficiaries to keep detailed records of business events. At Aider Polska (MDDP Outsourcing), we understand that it is important for the beneficiaries of the relief to keep records in accordance with the requirements of the relief, so as part of our comprehensive service for companies claiming the IP BOX relief, we offer you to keep the required detailed records of business events. This is facilitated by our IT solutions, in particular by the electronic workflow, where you can clearly and precisely allocate costs per IP, while classifying them by other dimensions, such as projects, phases, etc.

In addition, you can count on a professional service to control the correctness of IP Box or R&D relief settlements.

IP BOX related offerings

As part of a comprehensive service forIP BOX beneficiaries, we also offer :

indication of qualified income,
analysis of your business in terms of the possibility of applying for IP BOX relief,
preparation of project documentation necessary to take advantage of the relief,
legal and tax advice,
drafting of contracts,
drafting a request for tax interpretation regarding the possibility of taking advantage of the IP BOX relief,
keeping detailed records of business events for the purpose of accounting for the relief,
Representation of your company before the tax administration authorities during verification activities and tax inspection in connection with the application of the relief,
preparation of summaries of your income from intellectual property rights (sales of qualified intellectual property rights, fees and receivables arising from license agreements), or compensation for infringement of rights arising from qualified intellectual property rights.

Aider Polska (MDDP Outsourcing) team from Katowice and Warsaw provides professional services in the process of qualification and implementation of IP BOX relief. The services we offer will make it easier to apply for the IP BOX relief in your company, and will support you at every stage of using it.

What is IP BOX and for whom is IP BOX?

IP Box or IP BOX relief (Innovation Box, Intellectual Property Box) is a preferential taxation of income earned from the sale of products or services produced based on intellectual property rights. Entities that meet the requirements of the IP BOX relief can benefit from a lower PIT/CIT rate, which is 5%.

Both personal income tax (PIT) and corporate income tax (CIT) taxpayers - companies - can benefit from the IP BOX relief. However, the requirement is not the period of operation, as both recently established entities and companies that have been on the market for a long time can benefit from the five percent rate. What's more, IP BOX relief is also extended to co-owners of intellectual property rights, as well as to entities that make profits from the resale of licensing rights for which they have exclusive rights.

Conditions for taking advantage of IP BOX relief

A prerequisite for benefiting from the preferential income tax rate of 5% is that the entity conducts research and development work, from which income is derived from so-called qualified intellectual property rights, i.e.:

patents,
rights from registration of integrated circuit topography,
rights from registration of an industrial design,
exclusive rights referred to in June 26, 2003 on legal protection of plant varieties (Journal of Laws of 2018, item 432),
copyrights to a computer program,
protective rights to a utility model (covering, for example, new functions or a technical method of manufacturing a given object),
rights from registration of authorized medicinal products and veterinary medicinal products,
additional protection rights for a patent for a medicinal product or a plant protection product.

Targeted at entities creating and selling products or services based on intellectual property, IP BOX relief is most often used in the IT, pharmaceutical or technology industries.