The Ministry confirms that there may be changes to the IP Box relief regulations by 2025. Discussions are currently underway.
According to data from the Ministry of Finance, over 7.5 thousand taxpayers benefited from the IP Box relief in their tax returns for the previous year. There were slightly more cases in the tax returns for the year 2022. As experts highlight, statutory criteria greatly limit the number of entities that could apply this solution. They also refer to opinions about unclear regulations and the risk of possible tax control. Currently, interdepartmental consultations are ongoing for the tax law draft, incorporating changes to the income tax for natural persons, the income tax for corporate entities, and several other statutes. Further proceedings are planned for the beginning of next year. Meanwhile, experts are proposing changes and emphasize the need for wider education for entrepreneurs.
Choosing the IP Box relief
As per data shared by the Ministry of Finance, as of December 2, 2024, 7371 PIT taxpayers and 179 CIT taxpayers used the IP Box relief for the tax year 2023. This number is slightly lesser than that for the year 2022, where the numbers stood at 7369 and 199, respectively. Filip Smakowski, legal advisor from Mariański Group, points out that the regulations concerning IP Box relief apply to a very narrow type of income. Only those taxpayers who conduct research and development activities and produce specified intellectual property rights can benefit from this solution. This significantly limits the number of entities that would meet the statutory criteria.
– Taxpayers opt for the IP Box relief as it allows them to reduce the effective taxation of income from innovative activities to even 5%. This translates into savings of tens or even hundreds of thousands of zlotys per year by partially returning the tax paid during the year. This is particularly attractive for programmers and people in IT who create new or improve existing technologies – comments Aleksandra Borowska, IP Box relief expert in Pravna.pl.
As Filip Smakowski asserts, the substantial number of PIT taxpayers benefiting from relief over CIT taxpayers is due to two main factors. Physical persons who are software creators are generally B2B and therefore run an GUiR. If they don’t choose lump-sum tax on their recorded income, the IP Box relief becomes a natural choice for them. Companies, especially smaller ones, seldom choose the relief as they already benefit from a relatively low CIT tax rate of 9%. Even though the tax rate is higher than the income from the IP Box, it allows for simple settlement without the need to implement the relief. Additionally, these companies often have a poorer nexus indicator to the relief as they acquire intellectual property rights from creators, hence the benefits are smaller.
– There are far more PIT taxpayers benefiting from the IP Box relief than CIT, due to the actual devastation of income tax from corporate entities for years, e.g. with the abolition of monthly statements. He is beyond the interest of the controller. As a result, the taxpayer pays as much as they want. Moreover, there is a range of tax privileges that are less strict than those resulting from the IP Box. In my opinion, it is simply a failed concept – says Prof. Witold Modzelewski, former Deputy Minister of Finance.
The IP Box relief has been in effect since 2019. In the settlement for that year, 6152 PIT taxpayers and 75 CIT taxpayers used this relief. For the year 2020, this number was 8281 and 123 respectively, and for 2021, it was 9771 and 185. As Aleksandra Borowska states, 3 years ago we had an unusual situation. Many people changed their taxation forms due to changes in law, which increased the number of IP Box beneficiaries. The dynamic development of the IT sector also played a significant role here. The B+R relief, though important, did not contribute to this increase, as it was not yet widely used in conjunction with the IP Box at the time.
– The number of taxpayers using the IP Box relief was most limited by the introduction of the advantageous changes for programmers in the lump sum on recorded income. Since 2022, they can tax their income at 12% and do not have to maintain relief settlements or records required for IP Box purposes. The lump sum rate is also applied from the first income earned, whereas the IP Box relief is only settled in the annual tax return – adds the legal advisor from Mariański Group.
Vision of control and change
Public discourse includes opinions that some taxpayers refrain from using the IP Box relief due to unclear regulations. Moreover, there is no shortage of comments suggesting that applying this preference may entail some form of tax control.
– We have helped over 4 thousand programmers get the relief. Our analysis shows that the IP Box does not increase the risk of tax control. We usually deal with checking activities, which are less formal than classic tax control. In addition, they are not particularly burdensome for the taxpayer. During these activities, the tax office analyses the settlement documentation, verifies the IP Box records, and checks if the relief has been applied correctly. If the documentation is kept correctly and the IP Box record is complete, the proceedings before the tax office are rather a formality – informs the expert from Pravna.pl.
The draft law amending the income tax law for natural persons, the income tax law for corporate entities, and some other statues is entered in the List of legislative and program works of the Council of Ministers under no. UD116. Current intra-departmental consultations on the project are underway. Further proceedings are planned for the early next year. In the opinion of Filip Smakowski, clarifications in the form of a general interpretation by the Minister of Finance, in which the tax authorities would be directed to interpret the regulations correctly, would be beneficial. This mainly applies to the issue of keeping accounting records or defining a clear boundary for the creation of intellectual property for programming and modifying programs (i.e., change of source code).
– The IP Box relief contributes not only to the improvement of the situation of entrepreneurs but also to the creation of new jobs and the increase of technological development dynamics in the country. Any changes limiting the accessibility of this relief could slow down this development, especially in sectors that are key to the Polish economy. The current system, although it requires precise documentation, effectively motivates innovations – adds Aleksandra Borowska.
As the expert from Mariański Group argues, any changes should not aim at reducing the circle of people who can benefit from this relief. This was the purpose of the recent proposal from the Ministry of Finance. It was assumed that a taxpayer who would like to use the IP BOX will have to employ at least three employees under an employment contract for 300 days a year.
– If the authorities want to increase interest in using tax reliefs, they must consistently and effectively fight illegal tax evasion. However, today’s tax laws are written by so-called market people, therefore, people from business related to tax evasion. Some taxpayers do not feel the need to benefit from a relief such as IP Box when they can avoid taxation in a less risky way – claims Prof. Witold Modzelewski.
However, the expert from Pravna.pl believes that key to the topic is not debating who writes laws with whom – although this is also an important aspect, but the availability of full and reliable information about the relief itself and the consequences of its use. Therefore, stress should be placed on wider education. And above all, so that entrepreneurs better understand the entire mechanism of this or any other relief. Otherwise, nothing good is likely to happen in this matter.
Source: https://managerplus.pl/w-2025-r-moga-zmienic-sie-przepisy-dotyczace-ulgi-ip-box-obecnie-trwaja-wewnatrzresortowe-konsultacje-74099
