B2B contracts significantly impact the overall cost structure for IT companies in Poland by offering financial advantages and flexibility that traditional employment contracts do not provide. Here are the key ways in which B2B agreements influence costs:

Cost Savings on Compensation

Higher Take-Home Pay for Contractors: B2B contracts allow IT professionals to take home more pay compared to traditional employment contracts. For instance, a developer on a B2B contract can earn approximately 1,200 PLN more in net pay than under an employment contract, as they benefit from lower tax rates and fewer mandatory contributions1. This higher take-home pay can be an attractive incentive for skilled workers.
Lower Employer Costs: Employers can offer competitive net salaries while maintaining their overall cost structure. Since B2B contractors are responsible for their own taxes and social security contributions, companies can reduce their payroll burden and associated administrative costs. This allows firms to allocate resources more efficiently.

Administrative Efficiency

3. Reduced Administrative Workload: B2B contracts typically involve less bureaucracy compared to traditional employment arrangements. This reduction in administrative tasks translates into cost savings for companies, as they spend less time and money on payroll processing and compliance with labor laws.

4. Flexible Engagement Terms: Companies can engage B2B contractors for specific projects or timeframes, allowing them to optimize their workforce according to project demands. This flexibility helps manage costs effectively, ensuring that companies only pay for services when needed.

Tax Benefits

5. Flat Tax Rate Advantages: Polish law allows B2B contractors to opt for a flat tax rate of 19%, which is often lower than the marginal tax rates applicable to employees (which can reach up to 32%). This tax structure enables contractors to retain a larger portion of their earnings, making B2B contracts financially appealing.

6. Expense Deductions: Contractors can deduct business-related expenses from their taxable income, further reducing their tax burden. This capability allows IT companies to negotiate lower rates with contractors while still ensuring that contractors maintain satisfactory earnings.

Summary of Cost Structure Impact

Aspect	Employment Contract	B2B Contract
Average Net Pay	~9,000 PLN	~11,000 PLN
Tax Rate	Up to 32%	19% flat rate
Administrative Burden	On employer	On contractor
Flexibility	Limited	High
Engagement Duration	Fixed	Project-based

Conclusion

The growing preference for B2B contracts in Poland’s IT sector underscores the industry’s evolving priorities: flexibility, efficiency, and talent optimization. For companies, B2B agreements offer a cost-effective way to attract and retain top professionals while adapting to the dynamic demands of the market. For IT specialists, these contracts provide financial advantages and autonomy, aligning with the sector’s emphasis on innovation and adaptability. As the industry continues to expand, striking a balance between the stability of traditional contracts and the flexibility of B2B arrangements will be key to sustaining growth and fostering long-term success.

Sources:

https://sowelo.eu/key-aspects-of-b2b-contracts-in-it-industry-in-poland/

https://www.motife.com/insights/blog/b2b-contracts-in-it-industry-in-poland-blog-motife

https://www.dudkowiak.com/contract-law-in-poland/b2b-contract-in-poland/

https://www.dudkowiak.com/invest-in-poland/it-outsourcing-software-development-poland/