What should one do in order to safely implement IP Box? After several positive judgments, the KIS changes its approach to the relief and tries to decide whether taxpayers carry out research and development work. Still, calls from KIS can be a bit tricky. Can taxpayers do something about it? The latest article on Prawo.pl includes a comment by Piotr Sekulski PhD, who dispels these doubts.
We have already written about the IP BOX itself. We recommend reading our entry:
The article is available at this link.
tax advisor Piotr Sekulski, PhD
(…) So far, the interpretative authorities required the taxpayer to determine whether he or she conducts research and development activities and produces IP that gives the right to the IP Box relief. For the tax authorities, however, the merits, i.e. what the taxpayer’s activity actually consists of, were not important. However, it required the applicant to decide on its own whether the activities it undertakes are R&D. Meanwhile, the interpretation protects the taxpayer olny when the tax authority confirms that the taxpayer conducts R&D activities.
tax advisor Piotr Sekulski, PhD
The correct construction of the contract regarding the separation of copyright income and whether the copyright has been transferred are of key importance. The tax office may question the settlement of the IP Box relief if the taxpayer does not prove that he created copyrights and then transferred them. The lack of a method agreed with the contractor for separating copyright income from the total income for the provision of services may also be problematic. Even obtaining a favorable tax interpretation does not guarantee that the tax office will not question the right to the relief in the future if the application was inconsistent with the facts.
Another point of contention may concern costs. – Taxpayers make the most mistakes when it comes to showing costs eligible for the nexus indicator, i.e. costs incurred directly to create copyright (letter a of the nexus indicator). These may include, for example, the costs of purchasing software, licenses or computers. Despite several positive interpretations, you should carefully consider whether expenses for accounting services and ZUS contributions constitute costs necessary to produce a given software.
If you have questions about how to safely implement IP Box or how to protect yourself in the event of an tax audit, please visit us www.outsourced.pl .
