How to determine the flat-rate tax rate in the IT sector
It is worth noting that classifying a given service can be problematic and may require reference to the Polish Classification of Goods and Services (PKWiU). An IT entrepreneur planning to tax their business under the flat-rate scheme should carefully determine the PKWiU code for their services. If the relevant code appears in the list for the 15%, 14% or 12% rates, the assigned rate should be applied. If, however, the service does not appear in any of these categories, the applicable rate should be 8.5%. This is, in a sense, the ‘default rate’ for intangible services not listed elsewhere. However, its application as a preferential rate should be preceded by a thorough analysis of the possibilities for its application.
Entrepreneurs providing services related to:
- the distribution of computer game packages and software
- software
- software consultancy
- consultancy on computer hardware
- network and IT systems management
- software installation
Changes to the flat-rate scheme for the IT sector
As part of the tax reform, from 1 January 2022, the flat-rate tax rate for the IT sector was reduced from 15% to 12% and the list of services covered by it was expanded. As a result, the flat-rate tax has become a more advantageous form of taxation for many IT businesses.
As the flat-rate scheme became more widespread in the IT sector, numerous requests for individual interpretations began to be submitted to the National Tax Information Service. Taxpayers sought confirmation as to whether their specific business activities could benefit from the preferential rate of 8.5% or whether they should be subject to the 12% rate. The years 2024–2025 were primarily a period of consolidating the interpretative approach to the regulations and the practice of their application, which brought greater clarity regarding the boundaries between the 12% and 8.5% rates.
The 8.5% flat-rate in the IT sector – who can benefit from it in 2025?
Based on the practice of the tax authorities and the interpretations they issued in 2024–2025, the following, amongst others, may be subject to the 8.5% flat-rate:
- programmer support services, including activities typical of helpdesk, support and infrastructure maintenance,
- manual testers,
- people running IT workshops and training courses,
- system analysts,
- those handling reports of faults in IT infrastructure.
Services where the authorities’ interpretation was unfavourable to taxpayers were also analysed. The authorities classified the following as services still subject to a 12% flat-rate tax:
- programming services – including coding, software development and application creation,
- system analysis,
- IT solution design,
- test automation.
In 2024–2025, the authorities consistently maintain the position that the 8.5% rate is an exception in the IT sector, and that the 12% rate should prevail; therefore, a taxpayer intending to apply the lower rate should be prepared for a detailed verification of the nature of the services provided.
Practical tips for IT entrepreneurs – how to make use of the 8.5% flat rate?
The basis is a thorough analysis of the scope of services provided and the correct PKWiU classification:
Before declaring the 8.5% flat rate, it is essential to critically assess whether the scope of services provided actually allows for a lower rate. Elements of the business that may fall under the 12% category must be identified. If an entrepreneur is unsure about the classification, they may request a classification opinion from the Central Statistical Office (GUS).
Obtaining an individual interpretation confirming the right to apply a given rate is also an effective safeguard, especially if the business is unusual or multifaceted.
Correctly classifying services subject to different tax rates can be difficult, so each case should be analysed individually.
The IP Box relief and the flat-rate scheme in the IT sector
The IP Box relief offers preferential taxation of business income derived from the creation, development or enhancement of intellectual property rights, such as a computer program. Such income is taxed at a rate of 5% (IP Box relief). Entrepreneurs subject to the flat-rate scheme are not eligible for this relief. Entrepreneurs in the IT sector are often faced with the choice of whether it is worth taking advantage of the IP Box relief, or whether it is better to stick with the flat-rate scheme. With high revenues and a significant proportion of research and development activities, this may be more advantageous, but each case requires a detailed individual analysis.
Frequently asked questions
How do I determine whether my IT service is subject to the 8.5% or 12% rate?
The key is to determine the appropriate PKWiU symbol for the services provided. If the service appears in the list for 15%, 14% or 12% rates, the higher rate should be applied. Otherwise, when the service is not found in these categories, the preferential 8.5% rate is applied as the default.
Which services in the IT industry are taxed at the 12% rate?
The 12% rate must be applied by entrepreneurs providing services related to publishing games and software, its installation, and consulting on hardware and software. This category also includes management of computer networks and systems. Tax authorities classify programming services (code writing), IT solution design and test automation as services taxed at the 12% rate, not 8.5%.
Can I use the 8.5% rate as a manual tester or system analyst?
Yes, based on the practice of tax authorities from 2024 and 2025, services of manual testers and system analysts may be subject to the 8.5% rate. This group also includes programmer support, technical assistance, IT training and handling error reports in infrastructure.
Can I combine the lump sum tax with the IP Box relief?
No, entrepreneurs taxed with the lump sum on recorded revenues cannot benefit from the IP Box relief. This relief applies to income from intellectual property rights and taxes them at a 5% rate. Entrepreneurs must therefore choose between using the lump sum tax and benefiting from the preferential IP Box rate.
What steps should I take to safely apply the 8.5% rate?
You should thoroughly analyze the scope of services provided and correctly classify them according to the PKWiU symbol. In case of doubts, it is worth applying for a classification opinion from GUS or obtaining an individual interpretation that confirms the right to apply the lower rate. Each activity should be analyzed individually, especially if it is multidimensional.
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The practice includes ongoing advice on administrative and tax law. He has extensive experience in handling judicial, administrative, tax and judicial-administrative proceedings concerning both individual clients and business entities, including that gained through many years of providing services to local government units and other units of the public finance sector.
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