The choice between an employment contract and cooperation in the business-to-business (B2B) model in Poland has for many years been one of the key issues at the intersection of tax law, labour law, and social security law.
Although both models operate at the same time in business practice, their legal and tax consequences are significantly different. In practice, the decision about the form of cooperation is more often based not only on the type of work performed, but also on the level of public charges and the acceptable level of regulatory risk.
An employment contract is based on the concept of employee subordination. This means that the employee works under the employer’s supervision, in the place and at the time indicated by the employer. The employer acts as a payer of personal income tax and social and health insurance contributions. The salary is taxed according to the progressive tax scale: 12% up to PLN 120,000 per year, and 32% above this amount. Tax-deductible costs are
