Due to the recent change in the approach of the Polish Tax Office regarding the taxation of IT specialists under a lump-sum system, Gazeta Wyborcza has featured a commentary by Dr. Piotr Sekulski, PhD. This article addresses recent interpretations in which the Tax Office has commented on the possibility of applying the 8.5% lump-sum taxation rate to activities that were previously considered unrelated to software. In practice, this new approach expands the range of activities within the IT industry that are subject to a 12% tax rate instead of the previous 8.5%.
A quick recap – we have previously discussed the lump-sum taxation for IT:
tax advisor Piotr Sekulski, PhD
It was commonly assumed that the higher tax rate applied to those involved in creating or modifying software – those who “touched” the source code. Thus, individuals engaged in other activities such as analyzing system operations, security procedures, automation logic, or creating technical documentation were granted tax rulings allowing them to pay lower taxes. However, this has changed. State authorities now presume that any IT-related activity on a computer is associated with software and, therefore, subject to higher taxation.
tax advisor Piotr Sekulski, PhD
In the justification of the ruling, KIS pointed out that (…) the term “software consulting” has a broader meaning here. However, we do not receive any explanation as to why these services are considered software consultancy. A broader definition of software has been adopted without clear justification, which suggests that virtually every service with any connection to software may qualify for the 12% lump-sum taxation rate.
