[knallfrosch]

If you're from a country like Germany, most of what you're skipping financially is the insurance cost that's covered by the employer (social security etc.) Which means you don't have access to the social safety in case you need it.

[atraac]

In Poland(since I'm also from here), biggest chunk of savings when working as self-employed is income tax and mandatory public retiremend fund. Most Software Engineers go B2B/self-employment route because not only taxes are lower, but savings from paying minimal public retirement are pretty big with higher salaries. We're at a point where most people in Poland do not believe in retirement system anymore, it's unsustainable and will crash or will be kept with social, minimal retirement, no matter what you paid in. That's why most of us want to save on the side, put that into ETFs or housing rather than count on the government, especially that over last decade or so almost destroyed this country.

[KptMarchewa]

Exactly. Only 3% of millennials believe that state pension system will allow them to survive.

https://forsal.pl/artykuly/1415939,srokowski-tylko-3-proc-mi...

[KptMarchewa]

If you earn enough, the savings can easily surpass the risk for a singular person.

It's worse for society overall, but let's not pretend the high earners don't mostly subsidize the safety net.

[V-2]

The IT sector in Poland (again) is a booming one, and most of the services are effectively exported, as we're talking outsourcing.

I guess it translates into the lack of political will to curb the practice, too, as the government would risk that self-employed programmers (and whatnot) may not fall in line, but mostly log out of the system instead, registering their companies abroad, for example. I guess the government isn't eager to start this cat-and-mouse game, preferring a smaller slice of a bigger pie.

There are even some extra incentives on the top of the flat income tax rate (which is an option for all one-man companies, regardless of the sector)...

Like the "IP Box" tax relief, which drives the income tax rate from the regular 19% all the way down to 5%, as long as you get your services classified as "research and development". It takes some patience and loads of legal paperwork, which you obviously have to pay for (the latter, that is), but it's well worth it in the end.

[KptMarchewa]

>registering their companies abroad, for example.

"Registering" the business only is a trap and a way to pay much much more _when_ the tax office decides you are avoiding taxes. To truly do that, you need to move your center of life abroad, which generally means being outside Poland for 183 days a year.

>I guess the government isn't eager to start this cat-and-mouse game, preferring a smaller slice of a bigger pie.

I agree that it mostly is the case, as I still pay few times more taxes (and VAT on consumption...) than average citizen, even when using 12% lump sum tax.

[V-2]

> To truly do that, you need to move your center of life abroad, which generally means being outside Poland for 183 days a year.

Yeah, theoretically. But at least within the Schengen area, that's pretty difficult to prove/disprove, especially if you've got no family. I'm working remotely, I'm renting a cheap room in Budějovice, here's the tenancy agreement. Come see if my toothbrush is wet :)

[lifestyleguru]

In developed countries IP means submitting patents and real research which build the company's position on the market. That's why they have strong companies and brands. The Polish "IP box" is creating and submitting PDFs with git diffs of Java and TypeScript written for these companies. Just remember to remove passwords and secrets from them, guys.

[V-2]

Not all intellectual property is patented. Anyhow, you don't include git diffs. You cannot, even if you wanted to - the code is not your property. The whole point is that you're selling your intellectual property rights. It also means that the tax office pretty much has to rely on your word that the work is innovative in nature. Obviously they'd be in no position to tell the difference anyway.