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10 facts about taxation in Poland | Infographic

April 27, 2023

Ready to grow your business in Poland? Our team of local tax experts have summarised 10 facts to consider when it comes to the Polish tax system. For a more complex overview, we recommend to take a look on our Tax guideline for 2023.

CIT
19%

9% – Reduced CIT for small taxpayers and new companies in the first year of business activity

WITHHOLDING TAX
19% – On income from redemption of shares, participating loans, and dividends

20% – On income from interest, copyright or related rights, rights to inventive designs, trademarks and decorative designs, disclosing the secret of a recipe or production process, for the use or right to use an industrial device

Note: From 2022, a ‘pay and refund’ mechanism (including withholding tax at standard rates of 19%/20%) has been introduced in relation to certain categories of payments to related parties exceeding PLN 2 million.

STANDARD VAT
23%
REDUCED VAT

5-8% for selected types of goods and services based on the VAT matrix

0% for the export of goods and services and intra-community supplies of goods, under certain conditions

PIT
12% on annual taxable income up to PLN 120,000

19% on certain types of income 

PLN 10,800 + 32% on annual taxable income above PLN 120,000  

SOCIAL SECURITY AND HEALTH INSURANCE CONTRIBUTIONS – EMPLOYER

19.48% – 22.14%

SOCIAL SECURITY AND HEALTH INSURANCE CONTRIBUTIONS – EMPLOYEe

22.71%

TAX LOSSES

Loss from one source (business activity/capital gains) must be utilized within the same source.

5 years maximum carry-forward period for losses that cannot be set off 

50% of the loss can be utilized in the given year

TRANSACTION TAX (PCC)

Typically, the tax is levied as a percentage of the transaction’s value. Applies to: sale of things or rights, exchange of things or rights, loan, mortgage and articles of association.

REAL ESTATE TAX

PLN 1.16/m2 – maximum rate of a business land tax 

PLN 0.61/m2 – maximum rate of a private land tax 

PLN 28.78/m2 – maximum rate of a building tax for business related purposes

PLN 1.00/m2 – maximum rate of building a tax for non-business related purposes

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