Tax department

Depreciation of trademark rights

Depreciation of trademark rights is causing practical problems in Polish tax law. The part of the doctrine is convinced that subject of the depreciation is registered trademark, and is acquired after time-consuming procedure of registration of the trademark in the Patent Office. According to the second opinion, the trademark does not need registering. Please note that there are marks of a certain value on the market e.g. through copyrights under the Law of Copyright and Related Rights or on the basis of the provisions of unfair competition.

The difference in these opinions results from different interpretation of article 16b paragraph. 1 of The Polish Corporate Income Tax Act. As a rule the possibility of depreciation of trademarks applies to the categories mentioned in point. 6, e.g. to the protection rights under the Industrial Property Law Act. Supreme Administrative Court ruled in favor of this opinion many times.

Trademark considered as a work

Entrepreneurs have noticed that they can consider trademark as a work – a unique product of human mind. Therefore its protection may be based on the grounds of copyright laws, which are depreciated according to Article 16b paragraph. 1 point 4 of the CIT Act. Furthermore, this way of action, does not require the registration of the trademark in any office. The Director of the Tax Chamber in Warsaw approved this solution in one of the tax interpretations.

In both cases, the depreciation lasts over a period of 60 months.

Notwithstanding the above, it’s worth to take a look at the national and international solutions in the field of depreciation of trademarks. With skillful use of certain jurisdictions such as Cyprus or the Netherlands – there is a possibility to transfer income to countries with favorable tax policy regarding income from intangible rights.

CGO Legal Law Firm assists entrepreneurs in matters related to trademark depreciation. We identify the facts and the legal status, conduct the potential registration procedure, as well as the entire depreciation procedure.

If you want to learn more about depreciation of trademark rights, do not hesitate to contact us.