Verified Facts
Poland's tax system is based on a progressive income tax scale, with tax rates ranging from 9% to 32.5%, and a corporate tax rate of 9% or 19%, depending on the type of business and its annual revenue.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Poland operates a territorial taxation system, where residents are taxed on their worldwide income, while non-residents are taxed only on their Polish-source income. To be considered a tax resident in Poland, an individual must have a permanent home or center of vital interests in the country, or spend more than 183 days in Poland in a given tax year. The tax authorities also consider other factors, such as the location of an individual's family, business, and assets, when determining tax residency.
Poland's tax system is overseen by the Ministry of Finance, which is responsible for collecting taxes, enforcing tax laws, and providing guidance to taxpayers. The tax year in Poland runs from January to December, and taxpayers are required to file their tax returns by the end of April of the following year. Poland has a well-developed tax treaty network, with over 90 countries, which helps to prevent double taxation and fiscal evasion.
Personal Income Tax
| Income Bracket (PLN) | Tax Rate |
|---|---|
| 0 - 85,528 | 9% |
| 85,529 - 120,000 | 18% |
| 120,001 - 170,000 | 26% |
| 170,001 - 240,000 | 30% |
| above 240,000 | 32.5% |
| Taxpayers in Poland are entitled to various deductions and allowances, such as a basic allowance of PLN 9,440, as well as deductions for charitable donations, mortgage interest, and education expenses. Tax returns must be filed electronically, and taxpayers are required to pay any outstanding tax liabilities by the end of April of the following year. |
Corporate & Business Tax
- The corporate tax rate in Poland is 19%, although small businesses and start-ups may be eligible for a reduced rate of 9% if their annual revenue does not exceed PLN 2 million.
- Small business incentives include a reduced corporate tax rate, as well as exemptions from certain taxes, such as the tax on civil law transactions.
- Poland has 14 special economic zones, which offer tax breaks and other incentives to businesses that invest in these areas.
- Companies must register with the National Court Register and obtain a tax identification number (NIP) in order to conduct business in Poland.
- Foreign companies may also be required to register a branch or subsidiary in Poland, depending on the nature of their business activities.
VAT / Sales Tax
- The standard VAT rate in Poland is 23%, although reduced rates of 8% and 5% apply to certain goods and services, such as food, children's clothing, and pharmaceuticals.
- Exemptions from VAT include financial services, healthcare services, and educational services.
- Tourist refund schemes are available for non-EU visitors who purchase goods in Poland, although the scheme is subject to certain conditions and restrictions.
- Businesses must register for a VAT number if their annual turnover exceeds PLN 200,000.
For Expats & Foreign Workers
- Tax residency rules apply to foreign workers who spend more than 183 days in Poland in a given tax year, or who have a permanent home or center of vital interests in the country.
- Poland has double taxation treaties with over 90 countries, which help to prevent double taxation and fiscal evasion.
- Foreign workers may be required to register with the social security authorities and pay social security contributions, depending on their nationality and employment status.
- Remittance rules apply to foreign workers who send money abroad, and may be subject to certain restrictions and taxes.
- Expats may be eligible for a foreign earned income exemption, although this depends on their individual circumstances and the tax laws of their home country.
- Foreign workers may also be required to obtain a work permit or residence permit in order to work in Poland.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to a withholding tax of 19%, although this may be reduced under certain double taxation treaties.
- Capital gains are included in taxable income and are subject to the standard income tax rates.
- Cryptocurrency is considered a commodity in Poland, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Taxpayers must report their investment income, including cryptocurrency gains, on their tax return and pay any outstanding tax liabilities by the end of April of the following year.