Checked against the official source:
Accounting in software development has two distinctive features: the output is intangible, and a large share of revenue often comes from foreign customers. Both features directly affect the tax consequences.
The IT Park resident regime
- until 1 January 2028, residents are exempt from all taxes except those specifically listed, and from social tax; employees' personal income tax (PIT) is charged at 7.5% (Presidential Decree UP-5099);
- from 1 January 2028 to 1 January 2040, the exemption continues provided more than 50% of total income comes from exports, and for certain categories (Article 483 of the Tax Code);
- the auditor checks separate accounting for preferential and other activities.
Key issues
- Revenue recognition on long-term projects and by stage
- Accounting for development costs: capitalize or expense
- Documentary evidence of work performed on projects
- Settlements with foreign customers and foreign currency transactions
- How developers are engaged — on staff or under civil-law contracts
- Compliance with the conditions of the preferential regimes applied
Development: expense or asset
Classifying the costs of in-house development is the most contentious area. Recognizing them as an asset without meeting the established criteria overstates both assets and profit; expensing what meets the asset criteria distorts the result in the other direction.
Engaging the team
Engaging developers en masse under civil-law contracts when the relationship is in substance employment is a common practice with a high risk of reclassification and additional taxes on the payroll for the entire period.
Audit your IT company
We will check project revenue recognition, development accounting and how your team is engaged.
Go to the Voluntary Audit serviceFrequently asked questions
Does the auditor check compliance with the conditions of tax benefits?
Yes, if this is within the agreed scope. Losing the right to a benefit retroactively is one of the most expensive risks for companies in the sector.
Will IT Park benefits continue after 2028?
From 2028 to 2040 — provided more than 50% of total income comes from exports, and for certain categories (Article 483 of the Tax Code).
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