IP Box Relief In Poland – Between Innovation And Restriction

IP Box relief (the IP Box is also known as the Innovation Box or Patent Box) was introduced in 2019, and remains one of Poland's most important tax instruments supporting innovation. It allows eligible taxpayers to apply a preferential 5% income tax rate to profits earned from qualified intellectual property (IP) rights. Its main purpose has been to encourage entrepreneurs, especially in the technology sector, to conduct research and development (R&D) activities in Poland.

Both corporate income tax (CIT) and personal income tax (PIT) taxpayers may benefit from this regime, including sole proprietors and partners in partnerships. However, taxpayers using the Estonian CIT system are excluded, as they do not calculate revenues and costs under general taxation rules.