Académique Documents
Professionnel Documents
Culture Documents
for Poland
Legal forms of business
Overview of taxation system
Capital: Warsaw
Area: 312 679 sqkm
Katarzyna Kopaczewska
Managing Director
Tel.: +48 223 132 950
Mail: Katarzyna.Kopaczewska@accace.com
Maciej Grski
Tax Manager
Tel.: +48 223 132 950
Mail: Maciej.Gorski@accace.com
Polish
The minimum
capital
Tax treatment
Tax rates
N/A
Tax
transparent
vehicle
N/A
Tax
transparent
vehicle
N/A
Tax
transparent
vehicle
General
partnership
Professional
spka partnerska
(sp.p)
partnership
Asset deal
EEA/Swiss Foreign entities (natural or legal) may directly acquire real estate in
Poland, except:
Limited
partnership
spka
komandytowa (sp.
k.)
Joint-stock
partnership
spka
komandytowoakcyjna (s.k.a.)
Other investors require a permit with some exemptions. e.g. corporations may
acquire up to 0.4ha of undeveloped land in city areas for their statutory goals.
Asset deal is subject either to Transaction Tax or VAT (depending on the status of
supplier).
Limited
liability
Company
spka
z ograniczon
odpowiedzialnoci
(sp. z o.o.)
Share deal
Joint stock
company
Foreign investor that acquires a Polish corporation that owns any real estate require
a permit. The permit is not required for investors from EEA/ Switzerland.
Share deal is subject to Transaction Tax.
Sole
entrepreneur
splka akcyjna
(s.a.)
Dziaalno
gospodarcza
PLN 50,000
Non-transparent,
dividends subject to tax.
19%
19%
PLN 5,000
Non-transparent,
dividends subject to tax.
PLN 100,000
Non-transparent,
dividends subject to tax.
N/A
19%
18%/32%
or flat rate
19%
Incentives
Revenues derived from activity in Special Economic Zones (SSE) are exempt up
to certain level (depending on amount invested and workplaces created).
A company can deduct expenses on purchase of new technology. The
technology is considered new when its usage life worldwide is not older than 5
years (to be verified by independent scientific entity). The technology relief is up to
50% of expenses incurred on the purchase.
International aspects
Resident companies
Foreign income and capital gains - Resident companies are subject to tax on
their worldwide income and capital gains. Taxable amount is generally calculated
in the same way as in the case of domestic income.
Foreign losses - Losses of foreign permanent establishment (calculated based on
Polish tax rules) may be offset against domestic profits unless, on the basis of an
applicable double tax treaty, the exemption method applies for double tax relief.
Dividend income paid by non-resident company - Dividends paid out of profits
are taxed at tax rate of 19% unless rule implementing EU Parent-Subsidiary
Directive applies.
Double taxation relief - No unilateral double taxation relief is provided. Double
taxation is relieved only on the basis of tax treaties.
Non-resident companies
Taxable income - Non-resident companies are taxed only on income derived from
Polish sources. They are generally taxed according to the rules applicable to
residents.
Starting from 2015 companies having seat in tax heaven, or in a country with no
exchange of information, are treated as controlled foreign company.
Withholding tax - Generally, 19% withholding tax or tax security is levied (unless
limited under a tax treaty).
The regulation refers also to companies established abroad deriving at least 50%
of revenues of dividends, interests, copyrights, etc.
For interest and royalty payments EU Interest and Royalties Directive was
implemented.
Dividend paid by resident companies to non-resident - Dividends paid out of
profits are (unless rules implementing EU Parent-Subsidiary Directive apply)
subject to a 19% final withholding tax, unless a reduced rate applies under a tax
treaty.
Anti-avoidance rules
Thin capitalization
Applicable on interest expenses arising in the tax period starting from 1 January
2015.
All resident legal entities and non-resident legal entities having a permanent
establishment in Poland are covered. Previously different regulations apply.
Certain types of income are not aggregated, but are subject to a flat rate tax of 19%.
Losses - Tax losses generated from business activities and other independent
professional activities may only be set off against income derived from those types of
activity.
Losses that cannot be set off may be carried forward. The maximum carry-forward
period is 5 years, and the loss can not be utilized more than 50% in given year.
Advance payments - Individuals who conduct business have to pay advance
th
payments till 20 day of given month.
In the case of employment income, the employer is obliged to remit the tax to the tax
th
authorities no later than on the 20 day after the wages were paid.
employment income;
business activity;
independent professional activities and income from the use of work and art
performance;
rental income;
sale of real property;
income from capital;
and other income (e.g. income from occasional activities).
Allowances
Basic personal allowances
Basic personal allowance is PLN 3089.
Credits
Resident taxpayers are entitled to a tax credit for each child living in the same
household with him if his employment or business income does not exceed PLN
112,000 (joint income with spouse when married), or PLN 56,000(when single) for
2015. In 2015, the credit can be claimed in the amount of PLN 92.67 per child per
month.
International aspects
Resident individuals
Foreign source income - Resident individuals are subject to tax on their worldwide
income. Taxable amount is generally calculated in the same way as in the case of
domestic income.
Dividend income - Dividends paid out of profits are subject to a 19% withholding
tax, unless a reduced rate applies under a tax treaty.
Double taxation relief - Income earned from employment performed abroad is
subject in Poland to tax credit (if DTT does not state differently).
If DTT envisages exemption in Poland, taxpayer calculates tax only on the part of
income derived in Poland. However, the tax is calculated using rate as if an entire
income was taxable.
Non-resident individuals
Taxable income - Non-resident individuals are taxed only on their income derived
from Polish sources.
Employment income derived by non-residents from employment performed in
Poland for a period not exceeding 183 days in 12 consecutive months is exempt.
The exemption does not apply to activities performed by artistes or sportsmen, or
through a permanent establishment. The income of non-residents is generally taxed
according to the rules applicable to residents, unless a law or a tax treaty provides
otherwise.
the supply of goods and services for consideration within the territory of
Poland by taxable persons acting as such;
the intra-Community acquisition of goods for consideration within the territory
of Poland from another EU Member State; and
the importation of goods into Poland
Taxable amount - Total consideration charged for the supply, excluding VAT but
including any excise duties or other taxes and fees.
Tax period - Month or quarter.
VAT registration
The threshold for mandatory VAT registration for taxable person with registered
office, place of business or fixed establishment in Poland is turnover of PLN
150,000 for a period of 12 previous consecutive calendar months.
The mentioned exemptions do not apply to supply of real property. The voluntary
VAT registration is possible.
In case of intra-community acquisition of goods from another EU-Member state, the
taxable person not registered for VAT has to register for VAT before the first
transaction.
A taxable person (not registered as a VAT payer) has to register and pay output VAT
or to report the supply of service in EC Sales List if the place of delivery for that
service is:
VAT registration is mandatory for foreign taxable persons without registered office or
fixed establishment in Poland before it carries out activity which is subject to VAT in
Poland and reverse charge mechanism is not applied
Tax assessment - Periodical VAT returns (monthly or quarterly, by the 25th day
of the following month).
A foreign taxable person that makes distance-sales (mail order business) in Poland
to any person that is not registered for VAT in Poland has to register for VAT in
Poland before the net value of the goods reaches PLN 160,000 in a calendar year.
The amount of VAT liability consists of the VAT due on supply of goods and services
carried out by the entrepreneur less input VAT of the same period.
Other taxes
Taxes on capital
Certain civil law transactions are subject to this tax, among others:
Sale of things or rights,
Exchange of things or rights,
Loan,
Mortgage,
An Articles of Association.
The tax refers to non-professional transactions, when a transaction falls under VAT
the tax does not apply.
Typically the tax is levied as percentage of the value of transaction, e.g. sale of real
property or loan are taxed at 2%.
Disclaimer
Please note that our materials have been prepared for general guidance on the matter and it does not represent a customized professional advice.
Furthermore, because the legislation is changing continuously, some of the information may have been modified after the material has been released
and Accace does not take any responsibility and is not liable for any potential risks or damages caused by taking actions based on the information
provided herein.
Accace Poland
About Accace
Cybernetyki 9
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