Taxes in Poland for IT

For several years, Poland has been one of the key IT hubs in Europe. International corporations are opening offices here, startups are actively developing, and the labor market is attracting specialists from Belarus, Ukraine, and other countries in the region. For IT businesses, Poland is attractive not only due to its geographic proximity and stable economy but also thanks to its flexible tax system, which offers different regimes for companies and individual professionals.

Choosing the right tax model directly affects both business profitability and employee income. In Poland, you can work through traditional employment (umowa o pracę), as a sole proprietor (B2B), or take advantage of special IT tax regimes such as IP Box. Each option has its advantages, limitations, and tax burden, so understanding the details is essential for both employers and specialists planning a career in the Polish IT sector.

With growing competition for talent, companies aim to build attractive yet efficient cooperation models, while IT professionals seek the best balance between taxes and income. This article explains what taxes apply to IT businesses and developers in Poland, what cooperation formats are most common, and how to choose the most beneficial work arrangement.

Main types of taxes for IT specialists

Working in Poland involves paying several types of taxes and mandatory contributions. Understanding their structure helps both specialists and companies plan income and optimize taxation.

Personal Income Tax (PIT).

PIT is the main income tax deducted from employee salaries. For Polish residents, it is progressive: 12% on income up to a certain threshold and 32% on income above it. Depending on the form of employment (employment contract, civil contract, or B2B), the calculation and deduction of PIT may vary.

Social contributions (ZUS).

ZUS covers mandatory contributions, including pension, healthcare, social security, and unemployment insurance. Both employer and employee pay them. For IT specialists on a B2B contract, contributions can be lower than under traditional employment, which makes self-employment a popular cooperation model.

Corporate and business tax (CIT and B2B).

Companies pay CIT on profits, while sole proprietors pay income tax under simplified rules (B2B). The standard corporate tax rate is 19%, with a reduced 9% rate for small businesses. This format allows IT professionals to manage their income and expenses more flexibly.

Special tax regimes (IP Box, R&D relief).

IP Box allows developers to pay a reduced tax on income derived from intellectual property created during software development. R&D incentives encourage companies to invest in research-intensive projects and reduce the tax burden on innovation.

Thus, IT specialists in Poland need to understand not only basic taxes and contributions but also special regimes that can significantly improve profitability and reduce their tax burden.

Employment options and their taxation

IT specialists in Poland can work under different schemes, each with its own taxation and social security specifics.

Umowa o pracę (employment contract).

This is the standard form of employment, where the employer officially hires the worker and withholds all taxes and contributions. The employee pays PIT and their share of ZUS, while the employer covers the remaining ZUS payments and corporate contributions.

Taxes and contributions for employer and employee.

The employee pays PIT and part of the ZUS contributions; the employer covers the rest of ZUS as well as corporate-related charges. This arrangement provides social protection, including pension, healthcare, and sick leave.

Advantages and disadvantages.

Benefits include stability, social guarantees, and predictable income. Downsides are higher tax burdens compared to B2B and less flexibility in managing income.

Umowa zlecenie / umowa o dzieło (civil law contracts).

These contracts are often used for project-based or temporary work. Taxes and contributions are lower than under an employment contract, but social guarantees are limited.

B2B (self-employment / sole proprietorship).

The B2B model allows specialists to work as sole proprietors providing services to companies. Taxes depend on the chosen system: the standard 19% or reduced 9% for small businesses. B2B offers more flexibility and tax optimization but requires managing your own accounting and social contributions.

Tax burden compared to employment contracts.

B2B often allows for a lower tax burden than traditional employment, especially for high earners. However, one must consider ZUS contributions and self-managed accounting.

Optimization opportunities.

IT professionals can combine different regimes, such as B2B with IP Box, to reduce taxes. The optimal choice depends on income, career goals, and cooperation duration.

Special tax regimes for IT

Poland provides special tax regimes for IT specialists and companies to reduce the tax burden and encourage innovation.

IP Box: conditions and benefits.

IP Box is a special tax regime for income from intellectual property. It allows you to pay a reduced tax on income from the results of your own software development and patents. For developers, this means legally reducing the tax rate to 5% on income earned from proprietary technologies or software copyrights. The main condition for the application is the presence of registered intellectual property rights and documentary evidence of their creation.

R&D and startup incentives.

Polish legislation offers benefits to companies engaged in research and development activities. They allow you to take into account the costs of development, research and innovation to reduce the tax base. Startups can use these benefits to reduce the tax burden for the first years of their operations, which is especially important for young IT companies with limited budgets.

Practical examples.

Example 1. An IT company that develops software uses IP Box and reduces the tax on income from new product modules from 19% to 5%, which allows for increased investment in team development.

Example 2. A startup in the field of artificial intelligence takes into account the costs of R&D (research activities), reducing the tax base, and uses the saved funds to hire additional specialists.

Example 3. An international company combines B2B cooperation with the use of IP Box for individual projects, which optimizes taxes for both the company and developers.

These regimes make Poland attractive to IT specialists and companies, allowing them to legally reduce the tax burden and direct the saved funds to the development of innovative projects and the expansion of the team.

Practical tax optimization tips

For IT specialists and companies in Poland, it is crucial not only to know tax rules but also to use them effectively.

Choosing between employment and B2B.

The first step to optimization is to determine the most appropriate form of cooperation. An employment contract provides stability and social guarantees, while B2B allows you to reduce the tax burden and flexibly manage income. The choice depends on the level of income, the duration of cooperation and the need for social guarantees. Companies often combine approaches: key employees work under an employment contract, and developers with a project workload work through B2B.

Reducing taxes legally.

The use of special tax regimes, such as IP Box, benefits for R&D or simplified B2B rates, allows you to legally reduce taxes. It is also important to properly allocate income and expenses, draw up formal contracts and take into account all legal deductions.

Expense management and social security.

For B2B entrepreneurs, it is important to take into account the costs of equipment, licenses, training and other work needs, which reduces the tax base. It is also worth planning the payment of social contributions in order not only to optimize taxes, but also to preserve the right to retirement, health insurance and payments in case of illness.

Choosing the best model for teams and companies.

The decision on the form of cooperation should take into account the goals of the company and the interests of the employees. For a team with different income levels and tasks, it may be advisable to combine an employment contract, B2B and project agreements. It is important to analyze the tax burden and social guarantees in order to choose a scheme that will be both beneficial for businesses and attractive to specialists.

These practical steps help IT companies in Poland effectively manage taxes, increase employee income and reduce financial risks, while maintaining the legality and transparency of their work.

Conclusion

Taxes in Poland for IT professionals and companies have several levels: income tax, social contributions, corporate taxation and special regimes such as IP Box and benefits for R&D (research activities). Understanding these mechanisms makes it possible to optimize the tax burden and effectively plan the income of employees and expenses of the company.

The choice between employment contracts, B2B, or civil contracts directly impacts financial results, social protection, and a company’s attractiveness to talent. A poorly chosen model can lead to excessive taxes or staff turnover, while the right structure balances income and stability.

The EOR platform facilitates the process of legal tax optimization and employee registration, ensuring compliance with legislation and transparency of calculations. Our team supports such processes, advises companies on choosing the optimal employment scheme and organizes the full registration of specialists in Poland, which allows IT companies to focus on business development and team growth.