WEBINAR: Overview of the IP Box scheme in Poland: conditions, qualifying IP, and who can benefit?

The IP Box regime in Poland was introduced in 2019 under the Corporate Income Tax Act and the Personal Income Tax Act, providing a preferential 5% tax rate on income derived from qualified intellectual property (IP) rights instead of standard rates (19% corporate income tax).

Eligible entities include both individuals conducting business and companies (including sole proprietorships, partnerships, and limited liability companies) that create, develop, or improve IP through their own research and development (R&D) activities.

Eligible IP rights encompass patents, copyrights to software, utility models, industrial designs, plant variety rights, integrated circuit topographies, and supplementary protection certificates, all of which must be legally protected and created or improved by the taxpayer’s R&D.

To benefit, entities must maintain detailed documentation linking R&D activities, IP creation, and income derived from the IP, which is critical for tax authorities’ compliance checks.

Accounting issues primarily involve correctly identifying and separating income generated from qualified IP, calculating the nexus factor (linking income to R&D costs), and maintaining thorough accounting records for tax reporting.

The IP Box regime supports primarily developers and programmers engaged in IT, and it is particularly important for software developers and IT companies in Poland.

Agenda:

Introduction: What is the IP Box and why was it introduced?
Legal framework: Statutory basis, eligible entities, and income
What are the eligible IP rights
Step-by-step application process: Registration, record-keeping, and compliance.
Common pitfalls and challenges: Documentation, qualifying R&D, and tax authority scrutiny
Case studies: Practical scenarios from software and biotech sectors.
Recent developments & planned changes: Legislative updates, practical impact
Q&A