{"id":5344,"date":"2020-06-12T21:10:23","date_gmt":"2020-06-12T19:10:23","guid":{"rendered":"https:\/\/msztax.pl\/en\/?p=5344"},"modified":"2020-12-14T12:53:23","modified_gmt":"2020-12-14T11:53:23","slug":"can-a-programmer-take-advantage-of-ip-box-in-poland","status":"publish","type":"post","link":"https:\/\/msztax.pl\/en\/can-a-programmer-take-advantage-of-ip-box-in-poland\/","title":{"rendered":"Can a programmer take advantage of IP Box in Poland?"},"content":{"rendered":"\n

Starting from January 1, 2019, Poland has introduced the new rules which allow to apply a 5% income tax rate. Such preferential rate can be used also for income from computer software copyrights. <\/strong>Can programmers also take advantage of this preferential rate?<\/p>\n\n\n\n

Who can take advantage of IP Box in Poland? <\/strong><\/h2>\n\n\n\n

Speaking simply, IP Box is supposed to grant the right to a 5% preferential tax rate to all entrepreneurs who conduct innovative activities and meet specific conditions. The form in which such activities are conducted does not matter. IP Box can apply equally to a limited liability company or limited partnership and to a freelancer operating as a sole trader.<\/p>\n\n\n\n

When can a programmer take advantage of IP Box in Poland?<\/strong><\/h2>\n\n\n\n

A programmer can take advantage of IP Box if he\/she obtains income from selling or licensing software he\/she developed. The typical situation is the former, that is the sale (assignment) of rights to a software. Not all sales of rights, however, can qualify for preferential treatment.<\/p>\n\n\n\n

A programmer can use IP Box if the computer software they sell is the result of research and development (R&D) work they conduct.<\/p>\n\n\n\n

What are R&D activities?<\/strong><\/strong><\/h2>\n\n\n\n

R&D activities are all actions whose purpose is to increase the stock of knowledge and develop a particular domain. The Frascati manual contains the following definition:<\/p>\n\n\n\n

R&D comprise creative and systematic work undertaken in order to increase the stock of knowledge \u2013 including knowledge of humankind, culture and society \u2013 and to devise new applications of available knowledge.<\/p>\n\n\n\n

The field or discipline under consideration does not matter \u2013 a programmer can also conduct R&D work.<\/strong><\/p>\n\n\n\n

When does a programmer conduct R&D work?<\/strong><\/strong><\/h2>\n\n\n\n

Today, developing software is inherently linked to R&D work and innovation. It is important to note that software can either be the object of R&D work on its own or part of a much wider R&D process. On the other hand, in certain circumstances the R&D element may be difficult to discern.<\/p>\n\n\n\n

In order for software development to be treated as R&D, the work must be aimed at eliminating scientific or technical uncertainty and advancing progress. Mere debugging will not be treated as R&D activities, and neither can writing simple applications or software using common programming languages be reckoned as such.<\/p>\n\n\n\n

The Frascati manual notes that the following activities may be considered R&D:<\/strong><\/p>\n\n\n\n