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 2021.
CIT
19 %
Reduced CIT
- 9 % for small taxpayers and new companies in the first year of business activity
- 5% for intangible property income
Commercial taxation of immovable property suspended until end of pandemic state
WITHHOLDING TAX
19 %
On income from redemption of shares, participating loans, and dividends
20 %
On interest, license fees, and know-how
Note: From July 2021, collecting withholding tax according to national rates is compulsory when payments exceed PLN 2 million. It can be avoided by using a special certification procedure or submitting statement.
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
14%
Special solidarity surcharge for taxpayers exceeding PLN 1 mil income
17 %
On annual taxable income up to PLN 85,528
19 %
On certain types of income
32 %
On annual taxable income above PLN 85,528
SOCIAL SECURITY AND HEALTH INSURANCE CONTRIBUTIONS – EMPLOYER
19.21 % – 22.41 %
TAX LOSSES
Losses generated from business activities may be set off against income derived from those types of activities. Losses on capital gains may be utilised only against capital gains revenue.
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
REAL ESTATE TAX
PLN 0.91/m2
Maximum rate of a business land tax
PLN 0.48/m2
Maximum rate of a private land tax
PLN 23.10/m2
Rate of building tax for business related purposes
PLN 0.77/m2
Rate of building tax for non-business related purposes
Sugar and alcohol tax
PLN 0.5
For one litre of sugar beverages
PLN 25
For for one litre of alcoholic beverages
