For several years, Poland has ranked among the top European countries for conducting business in the field of information technology. Its developed infrastructure, access to the European market, highly qualified specialists, and government support make this jurisdiction attractive for IT companies from various countries, including Belarus.
However, before establishing a company or relocating a team to Poland, it is important to understand the specifics of the local tax system. The correct choice of legal form, tax regime, and awareness of applicable benefits directly affects business profitability and opportunities for scaling.
In this article, we will examine what taxes IT companies pay in Poland, what preferences they can count on, and what risks should be considered when planning to enter the Polish market.
What Taxes Do IT Companies Pay in Poland
The Polish tax system offers IT companies flexible tools for optimizing their tax burden. The choice of an appropriate regime depends on the business structure, income volume, and development plans. It is recommended to consult tax specialists to select the best strategy.
1. Corporate Income Tax (CIT)
Corporate Income Tax (CIT) is one of the main obligations for legal entities operating in Poland, including IT companies.
- Standard rate: 19%
This rate applies to all Polish companies unless they qualify as small enterprises. It covers profits from core activities as well as income from other sources, including financial operations, leasing, etc. - Reduced rate: 9%
The reduced CIT rate can be applied to “small taxpayers” and to new companies during their first year of operation if the following conditions are met:
- Annual revenue (including VAT) does not exceed EUR 2,000,000.
- The company was not created through a merger, reorganization, or division of another company.
- The income is generated from operational activities, not, for example, from dividends or financial investments.
- Annual revenue (including VAT) does not exceed EUR 2,000,000.
For IT companies starting their business in Poland, this rate can serve as an effective tool for reducing the tax burden during the initial years of operation.
Important:
The 9% rate applies only to income from operational activities. Income from capital gains (such as dividends or asset sales) is taxed at the standard 19%, even for small enterprises.
The benefit is not applied automatically — the company must meet the requirements and properly declare its right to the reduced rate in tax reporting.
Example:
If a young IT company registered in Poland earns EUR 1.5 million in a year, and the main part of its profit comes from providing software development services, it is entitled to apply the 9% rate to the corresponding portion of profit.
Choosing between the standard and reduced CIT rate depends on the business size, income structure, and eligibility for benefits. To optimize taxation, it is recommended to consult with an accountant familiar with the Polish tax system.
2. Value Added Tax (VAT)
Value Added Tax (VAT) is applied to all stages of the production and sale of goods and services in Poland. For IT companies, knowing the specifics of VAT application is particularly important, as it affects both settlements with customers and eligibility for benefits.
- Standard rate: 23%
The 23% rate applies to all types of services and goods unless otherwise provided by law. Most IT services within Poland are subject to the standard 23% VAT rate, such as:
- Software development.
- Technical support.
- IT consulting.
- Provision of SaaS services.
- Software development.
- Reduced rates: 8% and 5%
These rates apply in a limited number of cases and rarely concern the IT sector. They can be used if an IT company additionally:
- Supplies specialized equipment (e.g., medical devices).
- Provides services related to education, culture, etc.
- Supplies specialized equipment (e.g., medical devices).
Applying the reduced rate requires confirming compliance with strictly defined categories specified by Polish law.
VAT Exemption on Service Exports
For IT companies working with foreign customers, the VAT exemption mechanism on service exports to EU and non-EU countries is particularly important.
When providing IT services to legal entities registered in other EU countries, a reverse charge mechanism is applied — the buyer pays the tax in their own country, while the Polish service provider does not charge VAT.
When providing services to customers from third countries (e.g., the USA, Canada, the UK, Belarus), these services are considered exports and, with proper documentation, are also VAT-exempt.
Conditions for exemption:
- The client must be registered outside Poland.
- The service must qualify as an intangible service (including IT services, consulting, software development).
- The company must have documents confirming the provision of services, the client’s location, and the purpose of the services.
VAT Registration:
Companies with annual turnover exceeding PLN 200,000 (about EUR 45,000) must register as VAT payers. Below this threshold, registration is voluntary — especially if the company works with foreign partners who prefer to receive invoices from VAT-registered suppliers.
IT companies in Poland can optimize their VAT burden through the reverse charge mechanism and export VAT exemption, which is especially beneficial for international operations. However, strict compliance with formalities and tax requirements is necessary.
3. Dividend Tax
Dividend payments to shareholders are subject to a 19% tax.
4. IP Box Incentive
IP Box (Innovation Box) is a special tax regime introduced in Poland in 2019. This regime allows companies to tax income derived from the use of qualifying intellectual property (IP) at a reduced rate of 5%. The measure aims to encourage innovation and retain technology companies within the country.
The IP Box benefit is available to both legal entities and sole proprietors if they:
- Conduct R&D (Research and Development) activities.
- Create and use IP assets (including copyrighted software).
What income qualifies for 5%?
A 5% CIT or PIT rate applies to income from:
- Selling proprietary software.
- Licensing software.
- Using software in their own commercial activity (e.g., SaaS services).
Important: The income must be directly linked to an IP asset developed through R&D.
Conditions for applying IP Box:
- R&D in Poland
The company must conduct research activities in Poland — independently or through contractors (with certain limitations). - Qualified IP ownership
In the IT sector, the main qualifying asset is copyright to software. Patents, utility models, and industrial designs also qualify. - Separate tax accounting
The company must:
- Separately account for income from each IP asset.
- Record R&D expenses.
- Prove the connection between development expenses and income from using the IP.
- Separately account for income from each IP asset.
- Ownership confirmation
The developed software must belong to the company — rights should be secured by contract if freelancers or outsourcing companies were involved.
Example:
A Polish IT company developed a CRM system, registered copyrights, and started selling licensed access to the platform. Income from these sales can be taxed at a 5% rate if the company documented the development process, conducted R&D, and maintains separate accounting.
The IP Box regime is a powerful tax optimization tool for IT businesses focused on software development. However, its application requires strict accounting, thorough documentation of all development stages, and proof of the innovative nature of activities. It is recommended to engage tax and legal specialists when preparing tax declarations.
5. Lump-sum Tax (ryczałt)
Applies to sole proprietors (JDG) and depends on the type of activity.
Rates range from 2% to 17%; for IT services, the rate is often 12%.
It does not allow for expense deductions but ensures simple calculations.
6. Digital Tax
Starting from 2025, a digital tax is planned for large international technology companies earning income from Polish users.
This tax aims to ensure fair taxation for digital giants.
What Benefits Can IT Companies Expect in Poland
Poland actively supports the development of the IT sector, offering various tax and investment incentives. These measures aim to attract foreign investment, encourage innovation, and strengthen the country’s position as a technology hub in Europe. Below are the key benefits available to IT companies in Poland:
- IP Box Incentive: 5% Tax on Intellectual Property Income
Poland allows IT companies to take advantage of the IP Box tax regime, which taxes income from qualifying IP, such as copyrighted software, at a reduced rate of 5%. To use this benefit, companies must conduct R&D activities and maintain appropriate records.
- Special Economic Zones (SEZ): Tax Holidays and Investment Incentives
Poland operates 14 special economic zones, offering significant tax incentives to companies. IT companies investing in these zones can expect corporate income tax exemptions for up to 15 years, depending on company size and investment amount.
For example, in the Kostrzyn-Slubice SEZ, small enterprises can receive up to 70% tax exemption based on investment volume or employment costs.
- State Support for Large Technological Investments
The Polish government actively supports large technology projects. The European Commission approved Poland’s plan to provide over PLN 7.4 billion (USD 1.91 billion) in state aid for constructing Intel’s chip assembly and testing plant — the largest investment agreement in Poland in decades.
- National Programs for IT Company Support
Poland runs national programs aimed at supporting IT companies, including tax reliefs, R&D subsidies, and grants for digitalization and innovation. These measures promote IT sector growth and attract investment.
Risks for IT Companies Entering the Polish Market
Entering the Polish market presents IT companies with wide opportunities: access to European clients, preferential tax regimes, and a stable economic environment. However, like any market entry, it carries certain risks. Understanding these nuances can help minimize costs and make well-informed management decisions.
- Tax and Administrative Burden
Despite available benefits, Poland has a rather complex tax system.
It is essential to:
- Strictly adhere to declaration deadlines and tax payments.
- Understand the differences between the standard system, IP Box, and ryczałt.
- Maintain transparent and accurate cost and income accounting, especially when using tax incentives (for example, IP Box requires strict R&D documentation).
Even minor violations can lead to tax surcharges or loss of benefits.
- Language and Legal Barrier
Although Poland’s business environment is increasingly English-speaking, key legal, accounting, and tax documents are in Polish. This requires the involvement of qualified local consultants, especially at the start.
It’s also important to note that Poland’s legal system is based on national legislation and may not coincide with norms familiar to companies from the CIS.
- Physical Presence and Office Infrastructure
To register a company and access certain tax benefits (e.g., in special economic zones), a physical office, hired staff, or meeting investment conditions may be required. Without meeting these requirements, benefits cannot be obtained.
- Talent Competition
Poland’s IT market is actively developing, and competition for qualified professionals is high. Salary expectations for programmers and engineers may be higher than in Belarus or Ukraine. This requires adapting recruitment and HR strategies to local market realities.
- Regular Legislative Changes
As an EU country, Poland constantly adapts its legislation to EU standards. This means that tax and corporate rules can change, especially in digital services, data processing, and cross-border trade sectors.
- Difficulties in Obtaining Subsidies and Benefits
Despite the availability of IP Box, SEZ, and other support programs, their practical application requires:
- Proper documentation.
- Compliance with strict formal criteria.
- Involvement of accountants and legal consultants.
Without experienced local support, achieving approval can be difficult.
Conclusion
Poland remains one of the most attractive European jurisdictions for conducting IT business thanks to its stable tax system, access to EU markets, and tax optimization opportunities — such as IP Box benefits, the ryczałt regime, and VAT exemption on service exports. However, successful market entry requires in-depth understanding of local legislation, accounting practices, and tax planning.
If you plan to establish or scale an IT company in Poland, the spex.by team is ready to become your reliable partner. We:
- Select the best IT specialists for international business needs.
- Provide payroll and tax calculation services.
- Offer tax consulting and IT business structuring services considering available benefits and preferences.
By working with us, you can focus on product development while leaving hiring and tax issues to the experts.
How to contact us
For more information or consultation on matters related to the Taxation of IT Companies in Poland, do not hesitate to contact us. We are here to help and support you.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@spex.by.
