28/5/2026
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Do you run a law firm and wonder about the correct lump-sum tax rate on registered revenues? Contrary to appearances, simply holding the title of attorney or legal counsel does not automatically mean you must pay a 17% lump-sum tax. In specific situations, a lawyer can benefit from a lower rate of 15%, which, with higher turnover, translates into significant tax savings.
28/5/2026
The legal world of lump-sum taxation operates on two rate levels, which clearly differentiate the way the profession is practiced. The rate of 17% applies to income from liberal professions, whereas 15% applies to legal services other than those provided within the scope of liberal professions. The key question is: what determines this distinction?
The main factor determining the rate is the way work is organized in the law firm, specifically – whether the lawyer employs individuals performing activities related to the essence of the legal profession. According to the definition in the lump-sum income tax act, personal practice of a liberal profession is considered an activity without employing individuals under employment contracts, mandate contracts, specific-task contracts, or other contracts of a similar nature, who perform activities related to the essence of the given profession.
Applying the 15% rate requires meeting two conditions: the employment of a natural person and that the employed person performs activities related to the essence of the profession practiced by the employer. This means that the lawyer must cooperate with another lawyer, a legal trainee, or a person with similar legal competencies.
The Director of the National Tax Information, in numerous interpretations, confirms that employing a legal counsel trainee or attorney trainee under a mandate contract entitles one to apply the 15% lump-sum tax rate. This is because trainees perform activities directly related to the essence of the legal profession. The same applies to cooperation between lawyers – a cooperation agreement with another attorney or legal counsel, even without specifying a minimum time commitment, allows for the application of the lower rate.
It is also important that the regulations do not require a minimum working time for the employed person. Simply collaborating with a lawyer, even on an ad-hoc basis when the firm is facing a heavier workload, is sufficient. It doesn't matter whether the collaboration is full-time or just a few hours a month – what counts is that the employed person performs legal activities.
On the other hand, employing only administrative staff – a secretary, accountant, or other support personnel – does not qualify for the 15% rate. In such cases, the lawyer is still considered to be practicing the profession personally under the regulations, which means they must pay the 17% lump-sum tax.
Taxpayers often mistakenly assume that any form of collaboration with another lawyer automatically qualifies them for a lower rate. However, B2B agreements between lawyers can raise controversy. Tax authorities are increasingly questioning such arrangements, checking whether legal activities essential to the profession are genuinely being performed, or if it's merely an attempt to circumvent a higher lump-sum tax rate.
Another pitfall is employing law students. Unlike legal trainees, students do not yet have the authorization to perform legal activities, so employing them does not qualify for the 15% lump-sum tax rate. The same applies to employing law graduates who have not yet started their traineeship – formally, they do not perform activities essential to the legal profession.
The differentiation in lump-sum tax rates aims to compensate for the higher costs associated with employing qualified legal personnel. Since the lump-sum tax does not account for income-generating costs, the legislator has provided a lower rate for lawyers who incur expenses for employing other lawyers or legal trainees. In this way, the tax system attempts to factor in the actual costs of running a larger law firm.
Therefore, if you run a law firm and collaborate with other lawyers or legal trainees – do not forgo the tax benefits you are entitled to. Correctly applying the 15% lump-sum tax rate is not only a saving but also a lawful utilization of the preferences provided by the legislator for lawyers incurring higher organizational costs for their operations.