Taxes in Poland
It is a good idea to open a business in Poland. The Republic of Poland as you know, Poland is one of the most promising countries for doing business. A stable economy and moderate tax rates make it possible not only to start a business but also to make it profitable. That is why many foreign citizens choose this country to start their own business.
There are many reasons why Poland is good for business. One of them is taxes. Poland has a low VAT rate – only about 23%. The government can offer a profitable business income tax and other tax incentives.
Taxes in Poland are balanced to ensure a combination of high living standards and social responsibility. The tax policy of the state is very effective in covering the main items of expenses, as well as the ability to provide favorable conditions for the development of entrepreneurship and attracting foreign capital to the country.
What are the taxes
Poland has become one of the most attractive places for investment, where, according to calculations, the return on invested foreign capital could be three times higher than in other countries of the European Union. For several years Poland has been demonstrating its leading economic position in Central and Eastern Europe. Moreover, Poland has become the undisputed “number one” investment destination, like stability, consistency, and an open-door policy for foreign capital attract investors to do business in Poland. Well, the fact that the corporate income tax has been reduced from 15% to 9% this year speaks for itself.
System of taxes and fees
Poland has a progressive taxation system. As a general rule, companies and individuals who are not residents of Poland, are taxed in the same way as residents of Poland.
Request bookkeeping solution
If you have a company in Poland, it is mandatory to do accounting and complete all taxation rules according to state laws. You can learn more about Accountancy in Poland below. Besides, our company also offers an accountancy service in Poland.
Tax system and rate
The table below presents various common tax types along with their corresponding rates.
| Tax | Tax Rate |
|---|---|
| VAT | 5% – 23% |
| Corporate income tax | 9% – 19% |
| Personal income tax | 12% – 32% |
| Dividend tax | 0.19 |
| Capital Gains tax | 0.19 |
| Property tax | varies by municipality |
| Inheritance tax | 3% – 20% |
| International tax | 9% – 19% |
| Cryptocurrency tax | 9% – 19% |
To obtain the status of a VAT payer, you must apply to the tax office with a corresponding application. This application is free of charge. There is a similar procedure for obtaining the right to be a VAT payer within the EU (VAT UE).
Every month, by the 25th, the taxpayer must submit a VAT return. Payment of tax for the current month occurs before the 25th day of the next month.
Polish law does not provide for an obligation for companies to register as VAT payers if your annual sales do not exceed 150,000.00 zl. (34,000 euros). However, to have such a status is rather a requirement of modern realities, since otherwise most of the counterparties simply will not do business with you.
Business in Poland
Our company provides services for setting up a company in the Republic of Poland. The specialists of our company have the necessary knowledge, experience, and qualifications. We can offer a consultation with taxes in Poland. Besides, we also provide business support, accounting, and other services necessary for your business. Our specialists have vast experience in this field of activity. We will be happy to help you successfully open a business in Poland.
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Disclaimer
Tax laws and regulations are continually evolving and can differ depending on personal circumstances. The information shared here is intended for general guidance only and may not represent the latest updates. It is strongly advised to seek the assistance of a qualified tax professional for specific and current advice tailored to your situation.