Can You Apply the IP Box When Using Outsourcing?

Polish practice regarding the IP Box is becoming increasingly flexible,
but the burden of proof still lies entirely with the taxpayer.

Many companies and freelancers face a situation where part — or even the majority — of the development work is carried out by external subcontractors.
Tax authorities often treated this as grounds for refusal: if a subcontractor wrote the code, then you were not the creator of the IP.

However, new case law from2024–2025 has brought more clarity (a short review is provided at the end of this publication). Specifically:
using subcontractors does not exclude the right to the IP Box, provided that the taxpayer plays a key role in creating the intellectual product, manages the process, and holds the economic rights.IP BOX – How to Reduce Tax to 5% for IT Companies and Developers in Poland – Tatiana Lyashchenko Your own lawyer in Poland
Remember:
To confirm eligibility for the relief, what matters is not who physically wrote the code, butwho bears the risk, makes the decisions, and commercialises the result.
Courts consider the following factors:

• Who initiated and controlled the development process?
• Who invested the funds and defined the technical solutions?
• Who holds the rights to the result (copyright or economic rights)?
• Who recorded the development expenses and can substantiate them with documentation?

If these questions can be answered with “the company / the taxpayer,” rather than “the subcontractor,” then the taxpayer may apply the IP Box.
As I,- yourlawyer in Poland, have recommended many times:take care of your proofs.
Contacts – Tatiana Lyashchenko Your own lawyer in Poland

Good to Know

The IP Box can be appliedtogether with the R&D (B+R) tax relief, provided that expenses meet the requirements of both schemes.
This approach is especially beneficial for startups and innovators — part of the expenses can be deducted, and the remaining profit taxed at the reduced rate.
More practical legal guidance on the topic is available here.

Key Legal Hack to Remember

Your company independently develops and manages the project, makes architectural and functional decisions, owns the intellectual property rights, and keeps separate records of income linked to the qualified IP.
If your business is involved in IT, software development, or product creation,consult a lawyer to:Contacts – Tatiana Lyashchenko Your own lawyer in Poland

• review your IP transfer agreements
• prepare proper IP Box documentation
• file an application for an individual tax ruling

Case Law (Brief Overview)

The Supreme Administrative Court (NSA – Naczelny Sąd Administracyjny) has held that using external contractors (subcontractors / B2B programmers)does not exclude the right to apply the IP Box.

• In caseII FSK 61/25, the Supreme Administrative Court confirmed that when a taxpayer designs the concept, coordinates the work, and holds the rights to the results, they may be eligible for the 5% rate.
• In its judgment of11 July 2024, case II FSK 1363/21, the NSA recognised the possibility of qualifying expenses for programmers’ services (if conditions are met) under the IP Box framework.