Poland flag Poland: Business Environment

Tax rates in Poland

Tax Rates

Consumption Taxes

Nature of the Tax
Podatek od towarow i usaug (PTU) (Value-Added Tax)
Tax Rate
23%
Reduced Tax Rate
Supplies covered by a reduced rate of 8% include certain food products (e.g. sugar, spices, certain processed and preserved food); newspapers and periodicals (including e-publications other than publications wholly or predominantly consisting of video content or audible music) – except regional or local periodicals (printed or on disks, tapes and other media); goods and services of a kind normally intended for use in agricultural production (e.g.animals, plants, seeds, fertilizers and plant protection products - see after); animal feeding stuffs; veterinary services; healthcare products (pharmaceutical products; medical devices; certain disinfectants applied in health protection); selected devices for the blind; services related to admission to cultural, sports and recreational events (admission to shows, theatres, circuses, amusement parks, concerts, museums, zoos, cinemas etc., admission to sporting events and use of sporting facilities); lending in libraries of books and newspapers;;services of general interest (e.g. supply of water, supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by public bodies); funeral services; transport of passengers and their accompanying luggage; reception of radio and television broadcasting services (excluding VOD); the supply, construction, renovation, modernisation, thermal modernisation or conversion of buildings or parts thereof subject to the social housing programme (single-family houses up to 300 square meters and flats up to 150 square metres); maintenance of private dwellings, excluding materials which account for a significant part of the value of the service supplied; accommodation provided in hotels and similar establishments; food and beverages serving services (excluding the supply of beverages and goods unprocessed by the taxpayer - other than those that are subject to a reduced rate, as well as seafood; some labour intensive services (hairdressing services, repair of footwear and leather goods, repair and alteration of clothing and home textiles, bicycle repair).

Supplies covered by a reduced rate of 5% include basic foods (e.g. bread, meat, fish, fruits and vegetables, dairy products, bakery products, farinaceous products, eggs, fruit and vegetable juices, soups, broths, homogenised and dietetic food - see after); products for children and hygiene products (food for infants and toddlers, pacifiers, nappies, car seats, sanitary pads and tampons and); printed books, books on disks, tapes and other media and e-books (other than publications wholly or predominantly consisting of video content or audible music) as well as regional or local periodicals (printed or on disks, tapes and other media).

Zero-rated activities include exports, intra-Community supplies of goods, supplies of certain sailing vessels, international transport and related services, and supplies of computer equipment to educational institutions.

Other Consumption Taxes
Excise duties apply on alcohol, cigarettes, energy products (e.g. petrol, oils, gas), passenger cars, and electricity.
A sugar tax is levied on the trade of beverages containing sugar, sweeteners, caffeine and taurine (PLN 0.50 for the content of sugars in an amount equal to or less than 5 g in 100 ml of drink, or for the content of at least one sweetener in any amount; PLN 0.05 for each gram of sugar above 5 g in 100 ml of drink; PLN 0.10 per litre is payable on drinks containing caffeine or taurine).
A number of taxes are levied by the municipalities, including road vehicle tax and a transfer tax applying to certain civil law transactions, etc.

Return to top

Corporate Taxes

Company Tax
19%
Tax Rate For Foreign Companies
Non-residents are only taxed on Polish-sourced income at the same conditions as local companies. Residents are taxed on worldwide income, with foreign tax credit available.
Capital Gains Taxation
Capital gains are generally treated as a separate source of income and are subject to the standard 19% corporate income tax rate. An exemption may be available for venture capital companies (that are taxpayers for corporate income tax purposes) on gains from the transfer of shares that are acquired between 2016 and 2023 in companies performing R&D activities, provided certain requirements are met.
Capital losses are tax-deductible.
Main Allowable Deductions and Tax Credits
Costs incurred for the purposes of deriving, securing or preserving a source of revenue are generally deductible.
Accrued interest on loans and credit that were paid or capitalised are deductible for corporate income tax purposes. Creditors may reduce their tax base by the value of receivables if monetary payment has not been paid or sold after 90 days from the invoice due date.
Companies are entitled to deduct donations for the purposes of public benefit and to volunteer activity organisations up to a total amount not exceeding 10% of income.

Deductions may be claimed for royalties, management services, and interest charges paid to foreign affiliates. Taxes can generally be deducted (except for CIT, industry-specific taxes and VAT). Certain fines and penalties can be deducted.

Expenditure incurred for research and development (R&D) is deductible up to 100% of corporate income tax (varying according to the size of the company and the type of eligible costs). Expenditure incurred for covering the cost of staff hired in the context of R&D activities are also tax-deductible. From 2022, the deduction has been increased from 100% to 200%. Taxpayers can benefit from a deduction of investments made in robotization from the beginning of the 2022 fiscal year until the end of the 2026 fiscal year. The deduction may not exceed the amount of income in a given tax year. An additional deduction for marketing expenses up to PLN 1 million related to an increase in revenue from the sale of products is also available.

As a general rule, transactions with a value above PLN 15,000 can only be deducted when paid using a bank transfer.

Net operating losses can be carried forward up to five years, capped at 50% of losses incurred in a tax year. From 2020, a taxpayer may deduct from the tax base once over the next five consecutive tax years up to PLN 5 million of the loss incurred. Any loss above this limit may be deducted in the other years, capped at 50% of the loss incurred in the year for which it was reported. The carryback of losses is not permitted.
Other Corporate Taxes
Other taxes levied include capital duty (0.5% of the nominal value of share capital), specific intangible services paid to non-residents (20% withholding tax on services e.g. legal, accounting, advertising, market research, recruiting, guarantees), an excise tax on turnover of selected goods and tax on extraction of certain materials. Inheritance and gift taxes range between 3% and 20%, subject to certain allowances and exemptions.

Real property tax rates are fixed by municipalities within limits set in the Law on Local Taxes and Fees. In 2023, land used for business purposes is subject to a rate of PLN 1.16 per square metre. Buildings used for business purposes are subject to a rate of PLN 28.78 per square metre (depending on local authorities). Stamp duties and a transfer tax (0.5-2% on transactions such as sales and loans that are not covered by VAT) also apply.

As far as the social security system is concerned, employer contributions range from 19.48% to 22.14% of the employee’s gross salary; the contribution rate for the employee is 13.71% of the gross salary. The rates apply to salaries below PLN 208,050 (2023). Above this limit, the salary is subject to a contribution rate of 3.22% to 6.41% payable by the employer (2.45% payable by the employee). Contributions to a new type of retirement savings plan financed jointly by the employee, the employer and the government (Employee Capital Plans - PPK), are equal to 1.5% for the employer and 2% for the employee. Persons are enrolled by default but have the option to opt-out.

An additional tax is levied on the activities of certain financial institutions including local banks, branches of foreign banks, and insurance and reinsurance companies. The tax applies at a rate of 0.0366% per month when the value of assets exceeds PLN 200 million in the case of credit institutions, PLN 2 billion in the case of insurance and reinsurance companies and PLN 4 billion in the case of other financial institutions.
Shipping companies may opt to pay tonnage tax on certain types of income. A special tax is imposed on the excavation of silver, copper, crude oil, and natural gas

An income tax from retail sales came into force in 2021. The tax applies to retailers whose monthly turnover exceeds PLN 17 million at 0.8% on revenues up to PLN 170 million and 1.4% on revenues in excess of this amount.
Other Domestic Resources
Ministry of Finance

Country Comparison For Corporate Taxation

  Poland Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 7.0 13.9 10.6 9.0
Time Taken For Administrative Formalities (Hours) 334.0 226.2 175.0 218.0
Total Share of Taxes (% of Profit) 40.8 36.5 36.6 48.8

Source: Doing Business, Latest available data.

Return to top

Individual Taxes

Tax Rate

Income tax Progressive rate from 12% to 32%
Tax base below PLN 120,000 12% minus amount-decreasing tax (the tax-free amount is income up to PLN 30,000)
Tax base above PLN 120,000 PLN 10,800 + 32% amount exceeding PLN 120,000
Solidarity surtax (for individuals with annual income from specific sources over PLN 1 million) 4% on the income exceeding PLN 1 million
Individuals running business activities (as sole traders or as partners in partnerships) Discretionary flat 19% income tax rate (subject to certain conditions)
Individuals under 26 with income from employment or personal service contracts exemption on income up to PLN 85,528
Allowable Deductions and Tax Credits
Other taxes levied include capital duty (0.5% of the nominal value of share capital), specific intangible services paid to non-residents (20% withholding tax on services e.g. legal, accounting, advertising, market research, recruiting, guarantees), an excise tax on turnover of selected goods and tax on extraction of certain materials. Inheritance and gift taxes range between 3% and 20%, subject to certain allowances and exemptions.

Real property tax rates are fixed by municipalities within limits set in the Law on Local Taxes and Fees. In 2023, land used for business purposes is subject to a rate of PLN 1.16 per square metre. Buildings used for business purposes are subject to a rate of PLN 28.78 per square metre (depending on local authorities). Stamp duties and a transfer tax (0.5-2% on transactions such as sales and loans that are not covered by VAT) also apply.

As far as the social security system is concerned, employer contributions range from 19.48% to 22.14% of the employee’s gross salary; the contribution rate for the employee is 13.71% of the gross salary. The rates apply to salaries below PLN 208,050 (2023). Above this limit, the salary is subject to a contribution rate of 3.22% to 6.41% payable by the employer (2.45% payable by the employee). Contributions to a new type of retirement savings plan financed jointly by the employee, the employer and the government (Employee Capital Plans - PPK), are equal to 1.5% for the employer and 2% for the employee. Persons are enrolled by default but have the option to opt-out.

An additional tax is levied on the activities of certain financial institutions including local banks, branches of foreign banks, and insurance and reinsurance companies. The tax applies at a rate of 0.0366% per month when the value of assets exceeds PLN 200 million in the case of credit institutions, PLN 2 billion in the case of insurance and reinsurance companies and PLN 4 billion in the case of other financial institutions.
Shipping companies may opt to pay tonnage tax on certain types of income. A special tax is imposed on the excavation of silver, copper, crude oil, and natural gas

An income tax from retail sales came into force in 2021. The tax applies to retailers whose monthly turnover exceeds PLN 17 million at 0.8% on revenues up to PLN 170 million and 1.4% on revenues in excess of this amount.
Special Expatriate Tax Regime
Residents pay personal income tax for worldwide income while non-residents pay PIT only on Polish-source income. Expatriates and natives pay the same taxes in Poland.
In many cases, non-residents can benefit from a 20% flat tax rate calculated on their revenues (i.e. with no deduction of costs). The flat tax applies to various sources of income, excluding employment contracts.

Return to top

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of tax treaties signed by Poland (in Polish)
Withholding Taxes
Dividends: 0% (resident companies)/19% (resident individuals and non-residents), Interest: 0% (resident companies)/20% (non-resident companies)/19% (individuals), Royalties: 0% (resident)/20% (non-resident)
The above rates may be reduced as part of a tax treaty.

Return to top

Return to top

Any Comment About This Content? Report It to Us.

 

© eexpand, All Rights Reserved.
Latest Update: February 2024