alt Hacker NewsThey also enjoy 15% tax, through some arrangement I’m still not convinced is legal for IT contractors…
But yeah, some of the most skilled and passionate engineers I’ve worked with have been from Poland and the surrounding countries like Czechia.
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15%? With some legal footwork you can get to 10 or 5%, depending if you count general medical I surance as a tax or not.
This misses the obligatory health tax and pension fund contributions.
The pension fund is usually not considered a tax formally, but most people I know assume with our demographics and pension system we are just paying for current retirees (and our 'savings' will be impacted by inflation when it becomes impossible to maintain), so practically it's a tax.
Than there is 23% VAT (ofc much less than 23% because both the IT company and the contractor pass it to client and subtract some cost; so only a piece of it affects the contractor; it's a convoluted thing and I don't really know if I should treat it as ~22.9% or 2.3% tax on a contractor and it's client).
12% for software development, 8.5% for design/management. The caveat being, you can't deduct anything from tax, only VAT(under some assumptions). If you have actual expenses it's 12/32% progressive or 19% linear tax. Of course all of those are assuming you own a one man company and work B2B. Most devs here do. Otherwise regular contract of employment is progressive 12/32% tax, plus Healthcare and employer payments. Much less beneficial to both sides hence why it's not preferred by most.