Taxes in Poland – convenient way to do business

According to Polish legislation, all businesses which receive income from their operations in Poland must pay taxes. Refusal to pay tax, giving false data in a tax return form or any other attempts to cheat on paying taxes result in financial penalties or even custodial sentence.

Poland income tax (PIT) – competitive rates in EU

Every person who gets earnings (either salary based on a labor contract/ civil law agreement or from activities which bring profits) must pay PIT. Polish tax residents (those who live or work in the country or stay here for longer than 183 days annually) must pay PIT on the earnings they generate worldwide. Non-residents should pay the tax only on the earnings they get in Poland. 

Taxation of individual’s earnings is progressive. The higher the earnings, the higher the rate of taxes to be paid. Currently, the PIT system has 18% and 32% rates which depend on whether a ratepayer makes less or more than 85,528 zlotys per financial year. However, sole traders and partners in partnerships can be subject to a flat 19% PIT tax rate if they meet certain conditions. Also, persons who have made a very little sum receive a tax refund. To calculate PIT, you can use software programs on the Internet. 

Note that taxation in Poland requires individuals and firms to submit certain documents (forms) to tax offices. For example, each ratepayer should file a PIT tax return form to a tax office in Poland by April 30. There are many PIT forms and it is important to choose the correct type to submit in each situation. 

There is also a deadline for paying the tax. The payment should be made in cash or by a bank transfer.

It is recommended to contact a tax office to ask questions about tax settlement if anything is unclear. 

Corporate income tax (CIT)

Each firm which was incorporated in the country is known as a resident and must pay CIT on the earnings it gets worldwide. If a firm is a non-resident, should pay CIT only on the earnings it generated in Poland. A non-resident firm may be released from CIT (check whether there is a special agreement between Poland and your country).

Corporate tax in Poland is covered at the rate of 19% or 15% for a certain category of ratepayers. It should be paid each month. 

The year for payers of CIT is the calendar year. Ratepayers must file a tax declaration and the balance sheet within three months after the tax year is over. 

Special Economic Zones – your chance to get a tax exemption 

The Polish government focuses at the economic development of the country’s regions and encourages investments from foreigners. It created Special Economic Zones (SEZ) to attract investors for certain types of projects by offering them income and local taxes exemptions together with financial grants. A company must obtain a permit to conduct business activities in a SEZ and may also get help with the investment process from SEZ administrations.

Polish legal advisors will help you define which Poland tax rate is applicable to your business and provide you with information on how to provide timely payments. They will also assist you in submitting the necessary documents to tax offices.