Poland moves to introduce a 15% flat tax for service providers and clarifies contract‑work tax rules

Poland’s Ministry of Finance is advancing a proposal to set a 15% flat tax rate for income from service activities and for rental income to related parties when annual revenue exceeds 100,000 zlotys. Currently, such earnings are taxed at 8.5% up to the threshold and 12.5% above it. The new rate would apply only to service providers without employees, such as hairdressers, cosmeticians, tutors and similar freelancers.

Separately, guidance on the taxation of civil‑law contracts (umowa o dzieło) explains that the tax treatment depends on the contract’s terms, amount and whether author‑rights are transferred. Standard contracts are taxed after a 20% deduction of costs, with the ordinary personal‑income tax rates (12% up to 120,000 zlotys, 32% above). Exceptions include a 12% flat rate for contracts up to 200 zlotys and a 50% cost deduction for works protected by copyright. The payer, if a registered entity, withholds the tax and issues PIT‑11; private payers leave the tax filing to the contractor.