Pursuant to the Flat-Rate Income Tax Act, the 12% flat-rate tax applies to income from the provision of services:
a) related to the publishing of: computer game packages (PKWiU ex 58.21.10.0), excluding the publication of computer games on-line; system software packages (PKWiU 58.29.1), application software packages (PKWiU 58.29.2); computer software downloaded from the Internet (PKWiU ex 58.29.3), excluding the downloading of software on-line,
b) related to consultancy in the field of computer hardware (PKWiU 62.02.10.0), related to software (PKWiU ex 62.01.1), covered by the grouping “Originals of computer software” (PKWiU 62.01.2), related to consultancy in the field of software (PKWiU ex 62.02), in the field of software installation (PKWiU ex 62.09.20.0), related to network management and IT systems (PKWiU 62.03.1)
The 8.5% flat-rate tax applies to revenues from service activities not classified elsewhere.
Initially, in his interpretations, the Director of the National Tax Information Service (Krajowa Informacji Krajowej ...
However, the exclusion itself does not result directly from the regulations, but is the result of their interpretation by the authority. Therefore, it is important to note a recent change in this interpretation. While, for example, in April 2022, the authority agreed that PKWiU 62.01.12 is taxed at an 8.5% rate (see interpretation 0114-KDIP3-1.4011.81.2022.2.AK), in 2023 it has increasingly recognized that these are programming-related services and are taxed at a 12% rate (see interpretations 0115-KDIT1.4011.604.2022.2.PSZ, 0113-KDIPT2-1.4011.93.2023.3.RK, 0113-KDIPT2-1.4011.93.2023.3.RK).
Activities that were considered to be related to programming in the above-mentioned interpretations include: extending and adapting existing IT systems, implementing new or modifying existing functionalities, creating information architecture for IT systems in the form of diagrams and documentation for the IT system, designing functional IT systems in the form of graphical prototypes, creating usability audits of IT systems, and organizing workshops with programmers to deliver a functional design.
While taxpayer-favorable tax rulings are still being issued, recognizing the right to a flat rate of 8.5% under PKWiU 62.01.12 for certain activities. It should be noted, however, that the National Tax Information Service (KIS) has expanded its interpretation of the term "software-related" beyond previously issued rulings, resulting in a broader application of the 12% flat rate. Therefore, in order to benefit from the lower rate, it is essential to obtain a favorable tax ruling.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of April 28, 2023
