Poland's Supreme Court: Managers Offering Services Beyond Consulting Ineligible for Flat-Rate Tax

Warsaw – The Supreme Administrative Court (NSA) in Poland has ruled that individuals offering management services that extend beyond mere consulting, including representing companies and signing contracts, are ineligible for the flat-rate income tax regime. The court's decision clarifies the tax treatment for services often structured under B2B agreements.

The case involved a taxpayer who planned to register a business focused on "Management consulting services" (PKD code 70.22.1). The individual intended to perform these services for one or more companies within the same capital group under B2B contracts. The planned activities included representing clients, signing agreements and transactions, appointing proxies, and managing employees, in addition to providing advice.

The taxpayer sought confirmation from tax authorities that income from these B2B contracts could be taxed at a 15% flat rate, as per Article 12, paragraph 1, item 2, letter m) of the relevant tax law. The taxpayer had obtained a classification opinion confirming that their planned services fell under the specified management consulting category.

However, the NSA determined that the scope of services, encompassing representation, contract negotiation, and personnel management, constituted "personally performed activities." This classification excludes such income from the flat-rate tax regime, meaning these comprehensive services are subject to different tax rules. The ruling underscores the distinction between pure advisory roles and broader managerial functions when determining tax eligibility.