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Your IP Box claim, ready at year-end.

Register each qualifying asset, then tag its income and development costs as you post them. Sumly works out the nexus fraction and the 80% deduction, with the schedules for your tax return.

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  • Software and patents
  • Every asset kept apart
  • Built from your books

  • One register for your IP

    Each qualifying asset sits in one register, with the income it earned and what it cost to develop.

  • The nexus fraction

    Sumly works it out from what you spent on development, split by who did the work.

  • The 80% deduction

    Sumly takes 80% of each asset's qualifying profit as the deduction. At a fraction of 1.00, you pay an effective 3% on that profit.

Every asset, kept apart.

The law asks for separate records of income and spending for each qualifying asset. In Sumly that's a tag on the entries you already post, so there's no second spreadsheet.

  • Register software and patents your company developed
  • Each sale tagged to the asset that earned it
  • Development costs tagged as you post them

The fraction, from what you spent.

The nexus fraction scales the deduction by how much of the development you did yourself or paid unrelated contractors to do. Sumly builds it from the costs you tag.

  • Your own developers and unrelated contractors count in full
  • Bought-in IP and related-company work lower it
  • Build it all in-house and the fraction stays at 1.00

The deduction, with its workings.

Sumly applies the fraction to each asset's profit and works out the 80% deduction. The schedules set out each step for the tax return.

  • A computation for each asset, every year
  • Schedules ready for the tax return
  • Kept as working papers for an audit

How it works.

You set it up once. After that it runs inside the bookkeeping you already do.

  1. Day 1

    Turn on IP Box tracking

    Click Activate on the IP Box card in Sumly. It switches on straight away.

  2. Register your assets

    Add each product, module or patent you want to claim for. Your tax adviser confirms which ones qualify.

  3. Every month

    Tag income and costs

    Tag each sale and each development cost to its asset as you post it, and mark who did the work. Sumly keeps the totals per asset.

  4. Sumly does this

    The fraction and the deduction

    Sumly works out each asset's fraction, its qualifying profit and the 80% deduction from the entries you tagged.

  5. Year-end

    Claim it in the tax return

    The deduction goes in the company's corporate tax return, the TD4. Sumly prepares the computation and the schedules behind it.

The rest of the claim.

The details that make a claim easier to build and to defend.

  • Cyprus accounts ready

    The chart of accounts already has accounts for capitalised development costs, software, patents and royalty income.

  • Every figure traced

    You can follow each figure back to the entries and documents that produced it.

  • One fraction per asset

    A company with three products can have three different fractions. Sumly calculates each one from that asset's own costs.

  • Built year after year

    The fraction counts spending over the asset's whole life. The totals carry on, so next year's claim starts where this one ended.

  • Salaries count too

    Your developers' salaries are development spend. Tag them to the asset they worked on, the same as a contractor's bill.

  • Help with the application

    Applying for the IP Box is a separate service from tracking. We help with the application, starting with a free call about what you built.

Works together.

Everything in Sumly writes to the same books, so each part knows what the others did.

All features

IP Box tracking, answered.

It keeps the records a Cyprus IP Box claim needs inside your Sumly books. You register each qualifying asset and tag its income and development costs. Sumly works out the nexus fraction and the 80% deduction, and prepares the schedules for the tax return.

It deducts 80% of the qualifying profit a company earns from software or patents it developed itself. The rest is taxed at the 15% corporate rate, so the effective rate can be as low as 3%. The nexus fraction lowers the deduction when the IP was bought in or built by a related company.

No. Whether an asset or an income stream qualifies is a tax judgement, and your adviser makes it. Sumly keeps the records and does the arithmetic once that's settled.

Take what you spent on your own developers and on unrelated contractors, and add an uplift of up to 30%. Divide that by your total development spend, which also counts bought-in IP and work by related companies. Those two pull the fraction down, and the uplift wins some of it back. The fraction never goes above 1.00. Sumly works it out per asset from the costs you tag.

When development of the asset starts, or now if it's already earning. Records rebuilt years later are hard to defend. If you start keeping them this year, you can claim this year.

In the company's corporate tax return, the TD4. Sumly prepares the computation and the schedules behind the figure. You don't file the schedules with the return. You keep them in case the Tax Department or your auditor asks.

No, they're separate. Tracking keeps the records behind your claim in your Sumly books, all year. Applying for the IP Box is its own process, which typically takes 3 to 6 months, and we help with it as a separate service. Our IP Box application page explains how it works.

Sumly hides the IP Box screens. Every entry you posted stays in your ledger and reports.

Learn more

Try it on your own books.

30 days free on the software. Or book a call and we'll show you around first.

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What can we help with?

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