IP BOX and R&D relief

IP Box and R&D relief are tools that can substantially reduce the tax burden of companies engaging in research and development activities and developing intellectual property (qualified IP). At GLC, we specialize in providing comprehensive support for the utilization of these incentives, ensuring maximum benefits for your business. Regardless of the project’s size or sector, our individual approach guarantees accuracy, compliance with regulations, and predefined tax benefits, which are also secured by obtaining an individual interpretation regarding the eligibility for R&D or IP Box relief.

R&D relief

In Poland R&D relief (research and development) is a tax mechanism aimed at supporting entrepreneurs in carrying out innovative projects by allowing additional costs related to research and development activities to be deducted from the tax base. This relief applies to both corporate income tax (CIT) and personal income tax (PIT). Under the R&D relief, entrepreneurs can deduct the costs of salaries of employees engaged in R&D work, the costs of purchasing materials and raw materials directly related to R&D, as well as the depreciation of scientific research equipment used in R&D projects.

As a rule, all entrepreneurs, regardless of the size of their company, conducting research and development activities, can benefit from an additional deduction from the tax base in the amount of 100% of qualified costs. For taxpayers with the status of a research and development centre, the deduction amount can even reach up to 150% of qualified costs.

IP Box relief

IP Box relief is, in fact, a preferential tax rate. The relief is available to CIT and PIT taxpayers who generate income from qualified intellectual property rights. The IP Box rate is 5% and can significantly impact the reduction of effective tax burdens for companies and individuals conducting business activities in the area of qualified IP.

To benefit from the IP Box relief, the taxpayer must maintain a record, which allows for precise allocation of income from qualified intellectual property rights. This record should contain detailed information regarding the revenues and costs associated with the creation of a given intellectual property right.

Another condition for benefiting from the relief is to have rights to an invention, utility model, or computer program that have been created, developed, or improved as a result of research and development activities. The relief applies only to those incomes that are directly related to the commercial exploitation of these rights.

Our services:

• Analysis of eligibility for IP Box and R&D Relief – We conduct a detailed analysis of your activities to determine eligibility for IP Box and R&D reliefs, identifying projects and services that may qualify for incentives.
• Optimization of qualified costs – We assist in identifying, documenting, and optimizing qualified costs to maximize the benefits of tax incentives.
• Preparation of necessary documentation – We provide support in preparing and submitting the required documentation for IP Box and R&D reliefs, ensuring compliance with the latest tax regulations.
• Support in tax audits and inspections – We represent and support our clients during any audits or tax inspections related to IP Box and R&D reliefs, providing professional advice and defence.
• Tax interpretations – Benefiting from R&D or IP Box reliefs often requires obtaining relevant confirmation, which is facilitated by obtaining an individual interpretation providing security for the client.
• Training for client teams – We organize training sessions for financial and R&D teams of clients, enhancing their awareness and competence in utilizing tax incentives.

With our support, your company can significantly reduce its tax burdens while investing in development and innovation. Feel free to contact us to discuss how we can help optimize your tax processes.