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 %
Reduced CIT
9 %
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 %
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
- An 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
