The service sector is usually characterized by high revenues and low costs (or a complete lack of expenses). The IT industry, particularly testers, web designers, and programmers, falls into this category of taxpayers. To avoid paying high taxes, it’s worth learning about the taxation form known as Rycza\u0142t (lump-sum tax) for sole proprietors in IT. Let’s analyze how PKD codes in the IT sector can affect the income tax rate for self-employed individuals in Poland.<\/p>\n
Since 2022, entrepreneurs in the Polish IT industry have been able to choose between two flat income tax rates under the simplified system (rycza\u0142t) \u2014 8.5% or 12%\u00a0. Prior to this, IT entrepreneurs paid a 19% flat income tax rate (podatek liniowy). However, with the simplified system (rycza\u0142t), you cannot deduct business expenses and pay tax on your turnover (revenue).<\/p>\n
Rycza\u0142t 12%<\/strong><\/p>\n According to Article 12(1)(2b) of the Lump-Sum Income Tax Act, the 12% rate applies, among others, to income obtained from providing services related to the development and publishing of\u00a0:<\/p>\n computer game packages (PKWiU ex 58.21.10.0), excluding online publishing of computer games,<\/p>\n<\/li>\n system software packages (PKWiU 58.29.1),<\/p>\n<\/li>\n application software packages (PKWiU 58.29.2),<\/p>\n<\/li>\n publishing ready-made software products (off-the-shelf software products), including translation or adaptation of off-the-shelf software products for a specific market at one’s own expense: operating systems, business applications, and other applications (PKWiU ex 58.29.3).<\/p>\n<\/li>\n<\/ul>\n Also in the service sector:<\/p>\n hardware consulting (PKWiU 62.02.10.0),<\/p>\n<\/li>\n software development (PKWiU ex 62.01.1),<\/p>\n<\/li>\n software consulting (PKWiU ex 62.02),<\/p>\n<\/li>\n software installation services (PKWiU ex 62.09.20.0),<\/p>\n<\/li>\n computer network and systems management (PKWiU 62.03.1).<\/p>\n<\/li>\n<\/ul>\n Rycza\u0142t 8.5% for IT Specialists<\/strong><\/p>\n If an entrepreneur provides IT services that do not fall under the aforementioned PKD codes subject to the 12% flat rate, they may be eligible for the lower tax rate of 8.5%\u00a0. For example\u00a0:<\/p>\n 62.02<\/strong>, but specifically those classified under PKWiU 62.02.30.0, i.e., technical support services in the field of information technology and computer hardware.<\/p>\n<\/li>\n 62.01<\/strong>\u00a0\u2014 services not related to programming, meaning those consisting of, for example, comparing (testing) whether a given application works in accordance or not with specifications and requirements, and after detecting errors, reporting the irregularities to programmers.<\/p>\n<\/li>\n<\/ul>\n A tester who only performs manual tests, meaning reproductive work that does not have the characteristics of consulting or programming services, can use the fixed rate of 8.5%\u00a0. In the case of a programmer, the 8.5% flat rate is excluded because the very fact of providing programming services is taxed at the 12% rate\u00a0.<\/p>\n The flat rate is determined based on the specific service provided. This means that a taxpayer entitled to use the flat rate can apply different rates depending on the type of services rendered\u00a0. They do not need to issue multiple invoices\u2014separately for each type of service. It is important that the invoice specifies the particular types of work or services provided.<\/p>\n Example<\/strong><\/p>\n Programmer X is a software tester and has entered into a B2B contract with Company Y. In addition to manual testing, he spends \u2155 of his working time, as stipulated in the contract, creating and reproducing automated tests. At the end of the month, X issues an invoice for EUR 5,000. How should he account for this sale for income tax purposes?<\/p>\n<\/blockquote>\n Answer:<\/strong>\u00a0Manual tests, which are not related to the development and programming of functionalities, occupy \u2158 of X’s working time, so the income of EUR 4,000 is taxed at the 8.5% rate\u00a0. The development and implementation of automated tests takes up \u2155 of his time, so the income of EUR 1,000 is taxed at the 12% rate\u00a0.<\/p>\n The simplified system has another side to the coin. Although this form of taxation guarantees a fixed income tax rate and allows you to reduce the amount of your health insurance contribution (ZUS), at the same time you lose the opportunity to use the IP Box tax relief\u00a0.<\/p>\n IP Box is a solution that allows you to tax income obtained from the sale of intellectual property rights at a 5% rate when filing your annual tax return. By switching to the flat rate, you lose the ability to use this relief\u00a0.<\/p>\n Yes, you cannot use the IP Box relief, but you are entitled, when calculating the tax base, to take into account:<\/p>\n internet expenses,<\/p>\n<\/li>\n contributions to IKZE (Individual Pension Security Account),<\/p>\n<\/li>\n reliefs for the thermal modernization of housing.<\/p>\n<\/li>\n<\/ul>\n Rycza\u0142t (lump-sum tax) is worth choosing if your business does not involve significant expenses or if your income does not mainly consist of the sale of intellectual property rights qualifying for the IP Box relief. In such cases, the flat-rate tax can be significantly more advantageous than the general tax scale\u00a0.<\/p>\n PKD Codes for Testers<\/strong><\/p>\n Testers who wish to use the 12% flat rate should register the following PKD codes as their main business activities\u00a0:<\/p>\n 62.01<\/strong>\u00a0\u2014 the entire subclass describing software development (development, debugging, research, documentation development, and software support, including writing software management documentation for users; analysis, designing systems ready for use, website development).<\/p>\n<\/li>\n 62.02<\/strong>\u00a0\u2014 software consulting.<\/p>\n<\/li>\n<\/ul>\n PKD Codes for Programmers<\/strong><\/p>\n A programmer who has chosen the flat rate can use the 12% rate if they provide services falling under the following PKD codes\u00a0:<\/p>\n 62.01<\/strong>\u00a0\u2014 the entire subclass describing software development.<\/p>\n<\/li>\n 58.21<\/strong>\u00a0\u2014 services related to the development of computer games.<\/p>\n<\/li>\n 58.29<\/strong>\u00a0\u2014 services related to the development of system and application software.<\/p>\n<\/li>\n<\/ul>\n A taxpayer working in the IT industry but not providing services as a programmer or tester can also use the 12% flat rate. The Polish Classification of Activities (PKD) in this case determines that the relevant PKD codes for the rest of the IT industry are\u00a0:<\/p>\n 62.02<\/strong>\u00a0\u2014 consulting on computer hardware.<\/p>\n<\/li>\n 62.03<\/strong>\u00a0\u2014 IT network and systems management.<\/p>\n<\/li>\n 62.09<\/strong>\u00a0\u2014 software installation services.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":" The service sector is usually characterized by high revenues and low costs (or a complete lack of expenses). The IT industry, particularly testers, web designers, and programmers, falls into this category of taxpayers. To avoid paying high taxes, it’s worth learning about the taxation form known as Rycza\u0142t (lump-sum tax) for sole proprietors in IT.…<\/p>\n","protected":false},"author":1,"featured_media":12342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[],"class_list":["post-12343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-in-poland","category-78","description-off"],"yoast_head":"\n\n
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Can You Use Both the 8.5% and 12% Rates Simultaneously?<\/h3>\n
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Reliefs for IT Specialists on the Lump-Sum Tax<\/h3>\n
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Is the Flat Rate (Rycza\u0142t) a Good Solution for a Programmer?<\/h3>\n
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