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Reactions of Entrepreneurs and Effects of Introduction of Intellectual Property Box Privilege in Poland

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  • Barbara Zbroinska
  • Izabela Konieczna

Abstract

Purpose: The purpose of the article is to assess the effectiveness of support for innovation processes in Poland with the IP BOX instrument. The research questions were formulated: How do Polish entrepreneurs respond to tax incentives? Does the use of tax privileges improve the level of innovation of the Polish economy? Design/Methodology/Approach: The used method was the analysis and criticism of the literature, deductive reasoning, analysis of statistical data on the scope of use of this instrument and its effects. The research covers the period from 2016 to 2023, in which taxpayers have the opportunity to take the tax benefits. Findings: The level of exemptions in absolute terms, and the share in GDP, are low. Currently, 23 countries in Europe use IP BOX, Poland joined this group in 2018 and the number of beneficiaries of the preferential IP BOX rate and tax due on income have been growing dynamically since the beginning. The expected effect of IP BOX is an increase in patent activity and knowledge diffusion. Since the introduction of IP BOX, the number of patents has been declining. This is partly the result of extending the tax preference to developers of computer software that is not a subject of the patent procedure. To the largest extent, the IP BOX benefit PIT taxpayers. Practical Implications: The tax privileges introduced in Poland have been met with great interest by entrepreneurs. The application of this privilege causes a significant drain on state budget revenues. The effect of reducing the tax burden is compounded by the simultaneous use of the IP BOX and the R&D tax relief. The position of the Polish economy in innovation rankings, despite the support of entrepreneurs, is not improving. Originality/Value: There was presented our own assessment of the purposefulness and effectiveness of tax incentives.

Suggested Citation

  • Barbara Zbroinska & Izabela Konieczna, 2025. "Reactions of Entrepreneurs and Effects of Introduction of Intellectual Property Box Privilege in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 395-405.
    • Handle: RePEc:ers:journl:v:xxviii:y:2025:i:2:p:395-405
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    References listed on IDEAS

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    1. Haufler, Andreas & Schindler, Dirk, 2023. "Attracting profit shifting or fostering innovation? On patent boxes and R&D subsidies," European Economic Review, Elsevier, vol. 155(C).
    2. Pranvera Shehaj & Alfons J. Weichenrieder, 2024. "Corporate income tax, IP boxes and the location of R&D," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 203-242, February.
    3. Alexander Israel Silva-Gámez & Silvia Mariela Méndez-Prado & Andrés Arauz, 2022. "What’s Happening with the Patent Box Regimes? A Systematic Review," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    4. Lisa Evers & Helen Miller & Christoph Spengel, 2015. "Intellectual property box regimes: effective tax rates and tax policy considerations," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 502-530, June.
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    More about this item

    Keywords

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    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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