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IP Box Calculator

Calculate how much you can save with IP Box (5% tax rate on income from qualified intellectual property).

Income from qualified IP

Developers usually have Nexus index = 1.0

Calculation results

Nexus index (n):1.000
Taxable base:200,000 zł
Standard tax:38,000 zł
Tax with IP Box (5%):10,000 zł
SAVINGS:28,000 zł

How does IP Box work?

  • IP Box reduces tax rate to 5%
  • Applies to income from qualified IP rights
  • Requires conducting R&D activities
  • For developers, Nexus index usually = 1.0

Complete Guide to IP Box Benefit

What is IP Box?

IP Box is a preferential income tax rate of 5% on income from qualified intellectual property rights. The benefit was introduced in 2019 as part of Estonian CIT to encourage entrepreneurs to conduct R&D activities and commercialize innovative solutions. This is modeled on similar programs in other EU countries like France (patent box), Netherlands (innovation box), and Sweden.

How much can you save?

With standard income tax rates (19% flat tax or up to 32% in general rules), savings can be up to 14%. For example, with 200,000 PLN income from qualified IP, standard tax would be 38,000 PLN (at 19%), while with IP Box you pay only 10,000 PLN (5% of 200,000 PLN). Annual savings of 28,000 PLN.

Nexus Index - key to the benefit

Nexus is a coefficient (0-1) determining what portion of IP income comes from your own R&D activities. The more R&D costs you incur, the higher the index. For developers conducting their own development work, the index usually equals 1.0 (100%). Formula: n = (a+b)×1.3 / (a+b+c+d), where a = own R&D costs, b = R&D purchased from external companies, c = R&D from related parties, d = costs of acquiring finished IP.

  • a - own R&D costs (salaries, equipment, software)
  • b - R&D purchased from external companies
  • c - R&D from related parties
  • d - costs of acquiring finished IP

Qualified IP includes:

  • Copyrights to computer programs and systems
  • Patents and utility models
  • Industrial designs and semiconductor topographies
  • Plant varieties and medicinal products
  • Know-how and trade secrets

Requirements and conditions:

  • Conducting R&D activities
  • Creating or developing qualified IP
  • Maintaining separate accounting records for income and expenses
  • Cannot use with flat tax (only PIT or CIT)
  • IP must be used in business activities

What are the pros and cons of IP Box?

Benefits: Very low tax rate (5%), ability to combine with other benefits (R&D credit), incentive for innovation and development. Drawbacks: Need to maintain detailed records, narrow group of qualifying entities, restrictions on finished IP, risk of tax audit.

About IP Box Benefit

IP Box is a preferential income tax rate of 5% on income from qualified intellectual property rights. The benefit was introduced in 2019 to encourage entrepreneurs to conduct R&D activities and commercialize innovative solutions. This is similar to programs in other EU countries (France, Netherlands, Sweden).

Nexus Index - what is it?

Nexus is a coefficient (0-1) determining what portion of IP income comes from your own R&D activities. The more R&D costs you incur, the higher the index. For developers conducting their own development work, it usually equals 1.0 (100%). Formula: n = (a+b)×1.3 / (a+b+c+d)

  • a - own R&D costs
  • b - R&D purchased from external companies
  • c - R&D from related parties
  • d - costs of acquiring finished IP

Qualified IP includes:

  • Copyrights to computer programs
  • Patents and utility models
  • Industrial designs and semiconductor topographies
  • Plant varieties and medicinal product rights

Requirements to use:

  • Conducting R&D activities
  • Creating or developing qualified IP
  • Maintaining separate accounting records
  • Cannot use with flat tax (only PIT/CIT)

⚠️ These are ESTIMATE calculations for informational purposes only.