Sale of software with preferential PIT
Income from author's software, which constitutes a legally protected work and was created as part of the conducted research and development activity, may be taxed at a preferential tax rate.
This approach is also confirmed by the tax office, e.g. in its interpretation of 4 May 2022, No 0115-KDIT1.4011.92.2022.1.MK.
– Software is defined as the totality of information in the form of a set of instructions, implemented interfaces and integrated data intended for a computer to achieve designated purposes – it is subject to protection in Poland as a literary work under the Copyright and Related Rights Act. This in turn means that software may be considered qualified IP in the light of Art. 30ca sec. 2 item 8 of the PIT Act, if its creation, extension or improvement is the result of research and development activity. Thus, the income obtained by a taxpayer from a paid assignment to a principal of copyrights to a computer programme being developed – author’s software, which constitutes a legally protected work and was developed as part of research and development activities – qualifies as income from qualified IP within the meaning of Article 30ca Section 7 point 3 of the Personal Income Tax Act. Consequently, it is fully entitled to benefit from preferential taxation of income from this title at the rate of 5% – indicates Adam Allen, tax adviser, partner at Thedy & Partners.