Taxes in Poland, Taxation in Poland, Taxes system in Poland
You will pay tax on your income as an earner or as a self-employed person. As a permanent resident of Poland, you will be calculated on your income in Poland and abroad. A foreign resident who is employed in Poland pays tax only on their income earned in Poland.
You will be classed as a Polish resident if you are based in Poland, or if you stay there for more than 183 days in a fiscal year. An employer is obligated to deduct the tax payable on an employees' salaries. A self-employed person must prepay income tax that will be offset on filing an annual return. The advance payment is determined on the basis of the return made for the previous year. In the event of a new business, the advance will be calculated on the basis of estimates made by the owner of the business.
What follows is a list of the income tax bands for 2009 in PLN:
0% on income between 0 and 556
18% on income between 557 and 85,528
32% on income of 85,528 and over
Corporate income tax is imposed at a rate of 19%; capital gains, including those derived from the sale of publicly traded shares and state bonds, are treated as part of a company's profits and are taxed accordingly.
Advance payments of corporate income tax are payable by the 20th day of the following month, although the rules differ with regard to the last monthly advance payment, which should be made with the preceding month's payment. Annual returns must be submitted within three months after the end of the tax year, and the balance of any corporate income tax liability is also payable at this point.
In Poland VAT is applied to supplies of goods and services within the country and exports and imports, both from within the EU and from countries outside of the Union. The VAT rates are 22% (standard rate), 7%, 3%, 0%. There are also various exemptions, including for some transactions relating to land and construction, second hand goods, and certain financial and educational supplies.
VAT returns are generally filed either monthly or quarterly.
Excise duties are imposed at different rates on the sale, production and importation of various goods, as outlined in the Excise Duty Law (which include cars, tobacco products, alcohol, electric power, and fuel).
Additional taxes faced by corporations in Poland include the tax on civil law transactions, which is imposed on certain contracts. There are also local property taxes in place.
· Companies having its legal seat or management office in Poland are considered
Polish corporate tax residents.
· Resident companies are taxable to Poland on its worldwide income.
· Companies shall pay::
o Corporate Income Tax – 19%
o Social Security Contributions and other employment related Funds – app. 21%
o Value Added Tax – 22%, and for particular items: 7% and 3%
o Real Estate Tax shall depend on the item:
§ Land up
to 0,66 PLN per square meter ,
§ Buildings – up to 17,98 per square meter
§ Constructions – 2% of value
· Tax losses can be carried only forward for 5 years (minimum two years).
· There is no separate capital gains tax, and gains of that kind are part of ordinary
regulations: Thin capitalization rules and transfer pricing rules.