The Polish tax authorities are becoming more thorough in verifying eligibility for the IP Box AI relief. Can an entrepreneur who uses artificial intelligence in their work still benefit from the 5% tax rate? And is there a risk of losing your refund under IP Box AI? In a recent Rzeczpospolita article, Piotr Sekulski, PhD explains these doubts.
IP Box AI – Key Assumptions of the Relief
We have already discussed the fundamentals of the IP Box relief and its application in software development. Read more in our earlier articles:
IP Box AI
Recently, the tax office has been examining IP Box AI cases with increasing attention. But does using artificial intelligence in programming disqualify you from the relief?
The article mentioned in the title is available here.
tax advisor Piotr Sekulski, PhD
– They may pay only 5% tax, even though some of the work is performed by AI (…). IP Box is a relief for innovative activity. It applies to entrepreneurs earning income from intellectual property rights. Mainly, these are IT professionals creating computer programs. For them, it’s simpler, because they don’t need to obtain legal protection for the software they develop, unlike inventors who must protect their inventions. It is enough for them to transfer copyrights to the client. They pay 5% tax on income from innovative activity calculated using a special formula provided in the PIT/CIT Acts (…). Approximately 7,500 companies use the IP Box relief. Many of them use artificial intelligence and admit this in their applications for tax rulings. However, the tax office does not object to this(…).
tax advisor Piotr Sekulski, PhD
– The problem with the relief may arise when artificial intelligence independently creates the entire program (…). Technically, this is possible, but a human should guide it (so-called prompting), oversee the process, and verify the final results. This way, there is always a creative contribution from the human, and it would be difficult for the tax office to claim that the person is not the author of the program (…) However, attention should be paid to a tax ruling concerning a taxpayer who made AI-generated graphics available on online platforms (where they only entered keywords and algorithm rules). This tax authority position is a warning signal for those using the IP Box relief (…).
How can we help you with IP Box AI?
We support our clients (individual entrepreneurs) in verifying whether IP Box AI applies to their business. This includes analyzing contracts, actual tasks performed, and the way they create software.
During consultations, we help maximize your tax security when applying for the IP Box AI relief.
If you have questions about how tax audits verify IP Box AI claims or how to safely implement the relief, visit www.outsourced.pl .
