5% income tax for a programmer in Poland

Europe attracts programmers by its nature, temperate climate, strong democratic institutions, low levels of corruption, and social guarantees.





High incomes rarely make this list.





Governments approach poverty in different ways. Someone is pondering over an unconditional basic income . Others give more financial freedom.





Since 2019, the "IP BOX" benefit has been in effect in Poland, thanks to which a programmer can pay 5% of income tax instead of 19%.





This is in theory. In practice, it turned out a little differently: with an annual income of 165K zł, I managed to return 16K zł of previously paid taxes.





The Finance Minister's explanation of this benefit is 86 pages long , so I'd rather give my case.





Office of the Tax Service in Warsaw
Office of the Tax Service in Warsaw

There are two main conditions that must be met in order to be able to take advantage of the privilege. First, you write a code based on a B2B contract. Second, the contract stipulates that all copyrights are transferred to the customer.





A B2B agreement can be concluded in the case of an individual entrepreneur (individual entrepreneur), LLC (limited liability company) and a number of other forms of ownership. I had a number of clients with whom I worked without a contract. I had to call and ask to compose it. Some contracts needed to include copyright transfer information.





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16 zł 2019 . 2020, . , 2021 .





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, . : 15 000.00 zł + .





23%. 15000*1.23 = 18 450.00 zł. 18 450.00 zł .





( ), , , 15 000.00 zł. 19% , 15000-19% = 12 150.00 zł.





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, , 1 500.00 zł.





18 450.00 zł 10K zł.





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IP BOX ( 19%) 5%. .





IT

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: e-commerce, AI, , , , , , , etc.





LinkedIn . 99% – " 4 , , ". , -, . : 70-80 , . , , " , 25 (!)".





The more you work here, integrate into society and develop your network of contacts, the higher the chance of getting an interesting job. I got into one of the last projects without a technical interview at all. At the interview, the manager told me what tasks they want to solve. I confirmed that yes, it is within my power. And I received an offer 2 days later. Later, when we started work, I found out that our manager and I knew each other through third people. This seemed to give him the impression that the technical part of the interview was unnecessary.





The IT market can be described as follows: firms are looking for senior-a on the money of the middle-a, and junior-y is hard to start.








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