Even though the legal novelties’ reach beyond the IT industry, we can notice that the very IT industry will face the biggest impact of the proposed amendments, with a large number of flat-rate tax entrepreneurs, as well as the companies which have so far been de facto employing those entrepreneurs. That is since the amendments will prevent them from continuing with that manner of cooperation, with the increase of expenses for both sides. Instead, they will be provided with the opportunity to hire the above-mentioned entrepreneurs, thus enabling them to use the tax incentives.
With all of this in mind, the legal amendments give rise to many questions and uncertainties, and thus a certain degree of fear and uncertainty in the IT sector:
- Is the prescribed transitional period long enough?
- How to bear paying the tax and the compulsory social security contributions in the full amount after the expiry of the tax incentives?
- How will the IT industry react?