Employing expatriates in Poland or posting employees abroad brings a new set of obligations to any employer. Our Polish tax and labour law experts gathered all the crucial information related to cross-border employment for fiscal compliance, to provide you with a basic knowledge on the topic. Get an easy overview on conditions for tax residency, personal income tax, social security and health insurance contributions or penalties for non-compliance.
Overview of key facts related to expats in Poland
Our local tax, payroll and labour law experts are here to help you – as an expat or an employer – to obtain essential expert advice, so that you can effectively address all the matters related to cross-border mobility in Poland and other locations globally.
In Poland, tax residents are natural persons, who:
Have a centre of personal or economic interests (centre of vital interests) on the territory of Poland
They stay on Polish territory for more than 183 days in a tax year
Tax rate on income up to PLN 120,000
Tax rate on income exceeding PLN 120,000
Social security contributions
Rate for the employer
Rate for the employee
Health insurance contributions
From 2022, it is not possible to deduct health insurance contribution from tax.
Employee capital plans
Employee Capital Plan (PPK) is a pension saving system for the employees paying the social security contributions, regardless of the form of employment. This is a universal social program which aim is to increase the financial security of Poles. For the employer, the introduction of this program is mandatory (with exemptions), but the employee’s participation is voluntary.
250 PLN welcome contribution from the state
240 PLN annual contribution from the state
Basic contribution of the employer
Additional contribution of the employer
Basic contribution of the employee
Additional contribution of the employee
Tax return filing
The due date for filing the tax return falls on the end of April, with no possibility to extend the deadline.
Penalties related to tax
Delayed filing of the tax return: from PLN 349 up to PLN 69,800
Delayed payment of the due tax: from PLN 349 up to PLN 69,800
Delayed or missing registrations at tax authorities:5 years in prison or a fine up to about PLN 34,000,000, depending on the approach of the court
Delayed or missing report on monthly salary or withholding tax from salary: from PLN 349 up to PLN 69,800
Penalties related to social security
Not requesting an A1 form from the respective authorities: the same as the penalty for a delay with social security obligation and payment
Delayed report on social security: up to PLN 5,000
Delayed payment of the social security contributions: penalty interest is applicable
Delayed or missing registrations for the purposes of social security: from PLN 349 up to PLN 69,800
Penalties related to health insurance
Delayed report on health insurance: from PLN 349 up to PLN 69,800
Delayed payment of the health insurance contributions: from PLN 349 up to PLN 69,800
Delayed or missing registrations for the purposes of health insurance: from PLN 349 up to PLN 69,800