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18.09.2025
16The IP Box relief lets you tax income at 5% instead of the standard PIT or CIT rates. This preference was introduced on 23 October 2018 and still applies today.
With IP Box you can reduce your tax if you earn income from qualified intellectual-property rights. The relief is also a continuation of the R&D relief. Sole proprietors on a flat tax or the tax scale, and other entities earning income from qualified rights, can use it. In 2026 the IP Box still works on the same rules described in this guide.
This guide explains, step by step, how to use the IP Box relief correctly, which conditions you must meet, and how to settle it in your tax return.
IP Box relief — what it is and why it is worth knowing about
IP Box (Intellectual Property Box) is a tax preference introduced into Polish law on 23 October 2018 and in force since 1 January 2019. It allows income from qualified intellectual-property rights to be taxed at a preferential 5% rate instead of the standard rates: 12% / 32% under the PIT tax scale, 19% under flat-rate PIT or 9% / 19% under CIT.
The relief is aimed at taxpayers who carry out R&D activity and create, develop or improve qualified rights. These rights include:
- a patent and a protection right on a utility model
- a right derived from the registration of an industrial design
- autorskie prawo do programu komputerowego
- a right from the registration of a topography of an integrated circuit
- a supplementary protection certificate for a patent on a medicinal product or a plant-protection product
Use of the IP Box has grown: from 6,152 PIT taxpayers in the first year (2019) to 7,650 taxpayers in total (7,494 PIT and 156 CIT) in 2024 — the best result since the relief was introduced. Tax paid under the IP Box in 2024 was PLN 255.4 million (Ministry of Finance data).
Why the IP Box relief is beneficial for businesses
The most important benefit is a substantial reduction of the tax burden. The relief lowers the effective taxation of income from innovation activity to 5%, which translates into savings of tens or even hundreds of thousands of PLN a year.
Since 2022, following the Polski Ład changes, owners can use the IP Box and the R&D relief at the same time. When determining the qualified profit, R&D costs that led to creating or improving the right can be deducted.
The IP Box is especially relevant for IT, pharma, biotech and engineering. Programmers and technology companies often find it easier to determine both the nexus ratio and the income from the right.
IP Box in 2026 — planned changes (draft UD116)
In 2026 owners can still tax this income at 5% under the current rules — no new conditions have entered into force. The Ministry of Finance planned, in a draft amendment of PIT and CIT (UD116), to make the relief depend on employing at least three staff on an employment contract (or comparable salary costs) for at least 300 days a year.
In the version sent to the Standing Committee of the Council of Ministers in July 2026 that requirement was removed — together with the idea of including IP Box income in the solidarity levy. Draft UD116 is still at the government stage (it has not yet reached the Sejm) and is planned from 1 January 2027, but in a much narrower scope, without IP Box changes.
Since 2022 the IP Box has partly been replaced, for many programmers, by the 12% lump-sum rate — they then do not need to settle the relief or keep the IP Box records. For many owners this is simpler, because the lump-sum rate applies from the first revenue, while the IP Box is settled only in the annual return.
Who can use the IP Box and on what conditions
The IP Box is available to a wide group of owners, regardless of company size or industry. The key criteria are the type of activity and how the income is generated.
Who the IP Box is for — eligible entities
The IP Box is aimed at taxpayers who carry out R&D. It covers both PIT and CIT taxpayers, including:
- Sole proprietors taxed on the scale or the flat tax
- Partners of partnerships (civil, general, professional, limited)
- Capital companies and companies in organisation
- Tax capital groups
- Limited joint-stock partnerships with a seat or management in Poland
The IP Box is not reserved for a specific industry, but for a specific model of activity. In practice it is most often used by programmers, IT firms, engineers, designers, pharma companies and start-ups developing innovative solutions.
Formal requirements: R&D activity and qualified IP
To use the IP Box you must meet several conditions. First, you must carry out R&D, which the Act defines as creative activity covering scientific research or development work, undertaken systematically in order to increase knowledge and use it to create new applications.
In addition, you must:
- Create, develop or improve a qualified intellectual-property right within your own R&D activity
- Keep a detailed record of events connected with IP income
- Earn IP income that is taxable in Poland
- Incur costs connected with creating, developing or improving the IP.
IP Box and the lump-sum tax — who cannot use the relief
Not every owner can use the IP Box. The main limit is the form of taxation. Natural persons taxed on the lump-sum tax on recorded revenue cannot use this preference.
The IP Box is also unavailable to owners who do not carry out R&D or do not incur costs of such activity. Belonging to the IT or another innovative industry does not by itself give a right to the relief.
The Ministry of Finance earlier considered an extra employment requirement, but removed it from the 2026 draft — for now the circle of eligible taxpayers does not change.
How to calculate income and apply the nexus ratio
Calculating tax under the IP Box requires determining the qualified profit and applying the nexus ratio. Understanding each element lets you use the preference correctly.
Sources of income from qualified IP
Income from a qualified intellectual-property right (KPWI) is the surplus of revenue over the costs of obtaining it. Under the rules, this revenue may come from four sources:
- fees or amounts due under a licence agreement for the KPWI
- sale of the intellectual-property right
- the intellectual-property right included in the sale price of a product or service
- compensation for infringement of rights arising from the KPWI, if obtained in a dispute
If the costs exceed the revenue, the difference is a loss that you can deduct in the following 5 tax years, but only from income connected with the same IP.
IP Box calculator — how it works and what it takes into account
IP Box calculators help estimate the benefit of the 5% rate. They take into account:
- the sum of income from qualified intellectual-property rights
- the nexus ratio for each right
- R&D costs
The calculators let you compare tax under the general rules with tax at 5% and estimate the potential saving.
Nexus ratio — formula and sample calculation
The nexus ratio is a correction multiplier used to calculate the tax base at 5%. You calculate it as:
(a + b) × 1.3 / (a + b + c + d)
where the letters mean costs actually incurred on:
- a — R&D carried out directly and connected with the KPWI
- b — purchase of R&D results from an unrelated party
- c — purchase of R&D results from a related party
- d — purchase of the qualified intellectual-property right
IP Box tax — how to calculate the amount due
The tax base is the sum of qualified income from qualified intellectual-property rights earned in the tax year. To calculate it:
- First determine income from the qualified IP: IP revenue minus direct and indirect costs
- Then calculate qualified income as the product of the profit from the qualified IP and the nexus ratio
- Add up qualified income from all qualified IP
- Apply the 5% rate to the calculated tax base
When calculating income, include both costs directly and indirectly connected with the KPWI.
Records and settlement of the IP Box, step by step
Correct settlement of the IP Box requires proper documentation and knowledge of the tax procedure. The steps are below.
IP Box records — what they must contain
The basis of the settlement with the tax office is a separate record for IP Box purposes. You should keep it on an ongoing basis throughout the tax year. The record must include:
- revenue from the given qualified IP
- costs incurred on the given qualified IP (direct and indirect)
- income from the qualified IP, i.e. the surplus of revenue over costs
- a separate record for each intellectual-property right
The record can be kept as a spreadsheet with monthly expense summaries on a cumulative basis. If you work on several projects, you need a separate record for each, with a project description, duration and a list of people working on it.
How to settle the IP Box in the annual return
The deadline for the annual return is normally 30 April of the year following the tax year in which you earned income from the qualified IP. Settlement of the IP Box has four steps:
- Prepare a separate record for IP Box purposes
- Calculate qualified income (the product of IP income and the nexus ratio)
- Complete the relevant annex (PIT/IP or CIT/IP)
- Apply the 5% rate to the calculated tax base
During the year you pay tax under the general rules; the preferential rate is applied only in the annual return.
PIT/IP and CIT/IP forms — how to complete them
The PIT/IP annex is filed in one copy, regardless of the number of intellectual-property rights. When completing it:
- Fill in your personal data
- In part B.1. indicate the type of qualified right (e.g. "copyright in a computer program")
- In field 15 (PIT/IP) give the total number of qualified IP created in the year
- In the following fields show the sum of revenue and tax-deductible costs
- Calculate qualified income by multiplying income by the nexus ratio
- Apply the 5% rate to the calculated tax base
Since 2022 it is possible to combine the IP Box with the R&D relief within the same income.
IP Box inspection — how to prepare for a possible review
There is no automatic inspection after using the IP Box, but the tax office may carry out verification activities. Refunds above PLN 10,000 are often subject to such a review. For a possible inspection, prepare:
- A complete IP Box record
- Contracts with counterparties (especially clauses on the transfer of copyright)
- Evidence of creative work
- Documents confirming the expenses incurred
- An individual tax ruling (if you have one)
Inspectors will check whether you actually carry out R&D, whether the income comes from commercialising the intellectual-property right, and whether the record is kept correctly.
Summary and recommendations
The IP Box is a useful tax solution for owners who carry out R&D. Tax at 5% instead of the standard PIT or CIT rates can reduce the tax burden. To use it you must carry out R&D and create, develop or improve a property right.
Keeping the record correctly is the key to a proper IP Box settlement. Accurate documentation of revenue and costs connected with the qualified IP makes a possible tax review easier. A correct nexus ratio and qualified profit let you use the preference fully.
Since 2022 you can combine the IP Box with the R&D relief, which increases the tax benefit. More owners — especially in IT, pharma and biotech — are using this preference, as the statistics show.
The IP Box rules are not changing for now, but the Ministry of Finance is working on a broader tax amendment (draft UD116, planned for 2027). It is worth following that work and checking whether this form of taxation is the most suitable for your activity. For some owners an alternative is the 12% lump-sum rate for programmers, which does not require a detailed IP Box record.
Understanding how the IP Box works and meeting the formal requirements lets you reduce the tax burden and strengthen the company's position. Using this preference can bring savings of tens or even hundreds of thousands of zloty a year — which is a reason to read the rules carefully before applying them.
Settling the IP Box in the return is a topic for PIT filing or for the company's books. Questions about R&D records — an accounting consultation.
