How tagging works
Once IP Box is enabled, every line item on a bill or invoice can be tagged with three IP Box fields:
Category – what kind of IP transaction this line is.
IP % – the percentage of the line amount that counts toward the IP asset (default 100%).
IP Asset – which registered IP asset the line belongs to.
Cybooks uses these fields to build your R&D ratio, qualifying profit, and tax saving in real time.
The five IP Box categories
Category | Where | When to use |
IP Income | Invoices | Royalties, licence fees, or software/SaaS revenue earned from your IP. |
IP Direct Cost | Bills + Invoices | Costs of earning the IP income that aren’t R&D – e.g. hosting, customer support, royalties paid out. |
QE – Expensed | Bills | R&D spend that’s expensed in the period (e.g. ongoing maintenance, small enhancements). |
QE – Capitalized | Bills | R&D spend that creates new IP and is capitalised at year-end into an intangible asset. |
IP Acquisition Cost | Bills | Cost of buying existing IP from a third party. Counts in OE only – reduces your ratio. |
Tagging an invoice line
Create or edit an invoice as usual.
On the line item that relates to IP income, set:
Category = IP Income
IP % = the share of the line amount that’s IP-related
IP Asset = the registered asset
Save the invoice. Once approved (and not voided/draft), the income flows into the asset’s tax-savings calculation.
Note: On invoices, only IP Income and IP Direct Cost are valid categories.
Tagging a bill line
Create or edit a bill as usual.
For each line item, choose the right IP Box category, set IP % and the asset.
Save the bill (status Open, Paid, or Part-paid – draft bills are excluded from the calculation).
Using IP % for split lines
If a contractor invoiced you for a mix of IP work and non-IP work in one line, set the IP % field to the share that relates to your IP asset:
Bill line of €5,000 with IP % = 60 → only €3,000 counts toward the IP asset.
The remaining €2,000 stays as a normal expense on the books.
Common examples
Transaction | Category |
Salary cost of in-house developer | QE – Capitalized (or Expensed for maintenance work) |
Independent freelancer building a feature | QE – Capitalized |
AWS hosting bill for the live product | IP Direct Cost |
Buying a competitor’s codebase | IP Acquisition Cost |
Monthly SaaS subscription invoice to customer | IP Income |