What IT specialists should be particularly cautious about tax audits?

Those, who are improperly or insufficiently documenting their use of tax benefits, such as the IP Box (5% income tax rate) or research and development (R&D) tax deductions.

The following categories are at higher risk:

1. Freelancers and contractors working for multiple companies: If their activities are not well-documented, including contracts with clients and the transfer of intellectual property rights, tax authorities may question the legitimacy of their claims for tax relief.
2. Programmers claiming IP Box but not creating new products: If a specialist is engaged in technical support or routine tasks that do not result in the creation of new intellectual property, they may face scrutiny.
3. Specialists without proper documentation: Tax authorities require detailed documentation from contracts with clients to thorough descriptions of projects and deliverables. If this documentation is lacking or improperly organized, tax authorities may deem the benefits unjustified.
4. Programmers categorizing their activities as R&D: if projects do not meet the criteria for research and development, tax authorities may challenge the use of R&D tax deductions.
5. Those making overly broad interpretations of tax benefits: specialists attempting to apply tax relief to activities not covered by the rules (e.g., system administration, consulting, or customer support) may face serious audits. IT specialists using tax benefits should maintain accurate and comprehensive records, comply with tax laws, and correctly classify their work to avoid potential disputes with tax authorities.