When is it worth it to transfer copyrights?
It is worth to think about transferring copyrights if you create individual projects for each client. The unique character of such works usually makes their re-sale impossible, therefore when you transfer your copyrights you lose nothing.
You should keep the copyrights to the works you want to make available under license. Those can be software, scripts, bots, Photoshop actions etc.
What are financial benefits of copyrights transfer?
The transfer of copyrights affects the amount of income tax that you pay for the deal.
When you transfer copyrights, your tax deductible cost increases: instead of the 20% provided for specific task contracts it then amounts to 50%. The amount of the tax deductible costs is determined by the amount of the tax allowance.
A higher cost of earning means that the amount of income tax you have to pay is counted only from the half of the value of the job, and not from 80% of its value. This way you get a higher net payment.
What works can you transfer copyrights to and get a higher cost of earning?
You can transfer copyrights to all works of an original, individual and creative nature, however, it won’t always affect the amount of your income.
The act amending the act on personal income tax from 27.10.2017 specifies industries in which the transfer of copyright increases the amount of the tax allowance.
According to current regulations, these are:
- creative activity in the field of architecture, interior design, landscape architecture, urban planning, literature, fine arts, music, photography, audiovisual creation, software, choreography, artistic soldering, folk art and journalism.
- research and development, as well as scientific and didactic activity
- artistic activity in the field of acting and stage arts, theater and stage directing, dance and circus arts, as well as in the field of conducting, vocalism, instrumental studies, costume design, production design
- activity in the field of audiovisual production of directors, screenwriters, image and sound operators, editors, stuntmen
- opinion journalism