By Monika Laskowska, PwC Poland
Poland’s Ministry of Finance on April 12 launched a public consultation on new draft tax guidance addressing the IP box.
Poland’s IP box, which allows a reduced tax rate of 5 percent on qualified income from qualified intellectual property, has been in force since January 1.
The Polish IP box has broad scope and includes rights to use the intellectual property, sale of the rights, as well as selling of products based on IP.
The consultation draft seeks to clarify income calculation methods and includes practical examples.
The main areas of uncertainty addressed are the proper calculation of income in special economic zones as well as passive income from royalties on information technology.
The guidance also proposes calculating a correction index when taxpayers benefit from government grants.
Additionally, the guidance justifies the of inclusion of an IP box into Polish tax system and addresses interactions with other corporate and individual income tax provisions and specific transfer pricing regulations.
There remain several outstanding issues that need further explanation including, in particular, the calculation of income when a qualified intellectual property right is transferred as part of a sale.
It is hoped that the regulations will be made final before the end of 2019 so that taxpayers can use them for their 2019 tax return calculations.
–Monika Laskowska is a partner with PwC Poland.
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