Research and development operations in the legal structure of an IP-Box on the example of software developer services

Abstract

The purpose of this article is to determine the exact meaning behind the definition of research and development activities in the IP-Box regulation on the example of programmer services. This aim is achieved by analyzing legal regulations on IP-Box, tax explanations, individual interpretations, and administrative court decisions. Firstly, the legal construction of the definition of research and development activity is presented. Next, the model of a programmer and the services provided by the programmer created for the purposes of this article is described. Next, the model of the programmer’s services is qualified as a research and development activity. Finally, the practice of tax authorities on the subject of the possibility for programmers to benefit from the IP-Box tax preference is presented. The article proves that the key issue in the application of the IP-Box is determining the definition of the term ‘research and development activity’, and indicates the basic problems in the qualification of the taxpayer’s activity as research and development activity.