Taxes of 12% and 8.5% – PKD codes for IT professionals
One group of taxpayers with high income relative to low expenses is the IT industry, particularly testers and programmers. To avoid paying high taxes, it's worth becoming familiar with a form of taxation known as the lump-sum tax (ryczałt). Let's see how PKD (Polska Klasyfikacja Działalności) codes in IT affect the lump-sum tax rate!
Two fixed rates – 8.5% or 12%
Since 2022, the IT industry has operated within two lump-sum rates: 8.5% or 12%. These rates are significantly lower than 12%/32% for the tax scale or 19% for the flat tax. The lower lump-sum rate compensates for the inability to include expenses when calculating the tax.
PKD codes in IT under the 12% lump-sum rate.
Under Art. 12 sec. 1 point 2b of the Act on lump-sum tax on certain income earned by natural persons (hereinafter: the Ryczałt Act), the 12% rate applies to income earned from the provision of services:
related to:
- computer game packages (PKWiU ex 58.21.10.0), except for publishing computer games online,
- system software packages (PKWiU ex 58.29.1),
- application program packages (PKWiU 58.29.2),
- computer software downloaded from the Internet (PKWiU ex 58.29.3), excluding downloadable online software;
related to:
- consultancy in the field of computer technology (PKWiU 62.02.10.0),
- software (PKWiU ex 62.01.1),
- services included in the group "Program originals" (PKWiU 62.01.2),
- software consultancy (PKWiU ex 62.02),
- software installation services (PKWiU ex 62.09.20.0),
- management of networks and IT systems (PKWiU 62.03.1).
PKD codes for a tester
A tester who wants to use the 12% lump-sum rate must perform services covered by a PKD such as:
- 62.01, i.e. broadly understood software-related activity, or
- 62.02, i.e. software consultancy services.
Under the most commonly chosen PKD (62.01), the services provided include:
- writing, modifying, testing, documenting and maintaining software, including writing commands to control programs for users
- analysis and design of ready-to-use application systems, including developing, creating and supplying software documentation produced to the specifications of a particular user
- writing programs on behalf of the user
Website design
It should be noted that PKD 62.01 is understood broadly for software-related activities, whereas the 12% lump-sum rate can be applied under this PKD for services specific to the PKWiU:
- 62.01.1, i.e. services related to the design and development of information technology;
- 62.01.2, i.e. proprietary software, including games and other software.
If a software-testing service provider shares their technical knowledge and experience as part of the services provided – i.e. their services are advisory in nature – then the applicable fixed rate is 12%. The same applies to creating so-called automatic tests and thereby providing software-related services.
PKD codes for a programmer
A programmer choosing lump-sum taxation can apply the 12% lump-sum rate if they provide services covered by PKD:
- 62.01, i.e. broadly understood software-related activity, or
- 58.21, i.e. services related to the publication of computer games, except for publishing computer games online, or
- 58.29, i.e. services related to the publishing of system and application software, such as:
developing, delivering and documenting standard software – operating systems, tools and other items – without taking into account specific client requirements.
PKD codes for the rest of the IT industry
A taxpayer working in the IT industry who does not provide services as a programmer or tester can also benefit from the 12% lump-sum rate. The relevant PKDs in this case:
- 62.02, i.e. consultancy in the field of computer technology within PKWiU 62.02.10.0;
- 62.03, i.e. management of networks and IT systems, but only within PKWiU 62.03.1;
- 62.09, i.e. software installation services within PKWiU 62.09.20.0.
PKD codes in IT and the 8.5% lump-sum rate.
If an entrepreneur provides IT services not covered by the PKDs above that fall under the 12% lump-sum rate, they can apply the lower tax rate of 8.5%. This follows from Art. 12 sec. 1 point 5 of the Ryczałt Act, according to which the 8.5% fixed rate applies to income from service-provision activity not covered by other lump-sum categories – i.e. the 12% rate does not apply in that case.
If a software tester provides services covered by PKD:
62.02, and with respect to PKWiU 62.02.30.0, i.e. technical support services in the field of information technology and computer equipment;
62.01 but not related to programming – e.g. comparing whether a given application/function works according to the specification and requirements, and reporting violations to the programmers after detecting errors
– the lower lump-sum rate of 8.5% may be more favourable.
A tester performing only manual tests – i.e. repair work that is not advisory or development in nature – can apply the 8.5% lump-sum rate.
For a programmer, the 8.5% lump-sum rate is excluded, since the very fact of providing programming services involves a software service, which in turn falls under the 12% lump-sum rate.
Is it possible to use both the 8.5% and 12% fixed rates simultaneously?
The fixed rate is determined depending on the service provided. This means a taxpayer entitled to the lump-sum tax can apply different rates. To do so, they don't need to issue several invoices – one for each type of sale. What matters is that the specific sale items are indicated on the invoice.
Note that PKWiU is not a mandatory element of an invoice, but adding it to the invoice provides additional confirmation of the type of services provided.