8.5% Flat Rate for IT Project Managers – How Does It Work?

ByMateusz

Introduction: The Project Manager in the IT industry plays a crucial role in managing software projects, coordinating team efforts, ensuring timeliness and quality of execution, and optimizing organizational processes.

Tax Office’s Stance: Based on current interpretations of the law, tax offices have adopted a favorable stance regarding the taxation of project managers in IT, allowing the use of a preferential flat rate of 8.5%.

Confirmation of the Flat Rate Applicability: Project managers, according to the classification under PKWiU 70.22.20.0, can tax their income using a recorded flat rate of 8.5%. This is confirmed by the interpretations from the Director of the National Fiscal Information:

  • Interpretation dated March 29, 2024, sgn. 0113-KDIPT2-1.4011.127.2024.1.KD
  • Interpretation dated April 03, 2024, sgn. 0115-KDST2-2.4011.32.2024.2.AP

List of Activities Qualifying for the 8.5% Flat Rate: From the interpretation dated March 29, 2024, sgn. 0113-KDIPT2-1.4011.127.2024.1.KD, the scope of activities qualifying for the 8.5% flat rate includes:

  • Reviewing project proposals or plans to determine timelines, budget constraints, project execution procedures, staffing requirements, and allocation of available human resources to various project phases;
  • Identifying and planning project outcomes, milestones, and required actions and tasks;
  • Providing leadership and motivation to project team members throughout the project lifecycle and collaborating with the project team to create a work plan;
  • Supporting junior project managers, management staff, and others who require assistance and advice on project management practices;
  • Establishing the project work plan and required personnel for activities, iterations, or project phases, and organizing recruitment or allocation to the project team;
  • Analyzing project proposals to determine timelines, required funding, and appropriate project execution processes;
  • Reviewing and/or approving work plans prepared by external service providers or consulting firms;
  • Implementing the project communication plan;
  • Managing and mitigating project risks;
  • Monitoring activities within the project, ensuring the value, quality, and integrity of information, while maintaining the consistency of project information across the organization;
  • Ensuring that project goals align with the organization’s business objectives;
  • Ensuring the achievement of project goals;
  • Assigning tasks and responsibilities to project team members and defining their scopes of authority;
  • Managing and coordinating the activities of the project team to ensure project progress according to schedule and budget;
  • Reviewing current project status reports and modifying schedules or plans as needed;
  • Establishing standards and procedures for project reporting and documentation;
  • Continuously monitoring the effectiveness of project management to identify improvement potentials and enhance capabilities in project and portfolio management.

From the interpretation dated April 03, 2024, sgn. 0115-KDST2-2.4011.32.2024.2.AP, the activities that qualify for the 8.5% include:

  1. Planning and scheduling of projects.
  2. Budgeting.
  3. Defining the scope of the project.
  4. Coordinating the work of development teams and engineers.
  5. Reporting on work progress.
  6. Managing changes in the project.
  7. Communicating with partners and suppliers.
  8. Supervising project execution.
  9. Maintaining contact with decision-makers.
  10. Supervising project documentation.
  11. Monitoring the activities of the project team.

When Can You Benefit from the 8.5% Flat Rate? An IT Project Manager can apply the 8.5% rate, provided their activities do not include software creation or technical consulting in the IT sector. The specifics of the service contract are crucial.

What If You Are Already Paying a 12% or 15% Flat Rate? If you, as an IT Project Manager, have been or are still paying more than necessary (12% or 15%), you may be entitled to a refund for the overpayment. For more information on this, please contact us for advice and support.