Accounting and legal

Accounting and tax

    Tax and legal obligations for Poland companies
  1. Corporate tax Poland is levied at a flat rate of 19%. Capital gains take part in the corporate income and thus, are subject to the same tax rate;
  2. Annual tax returns must be filed and fully paid by May the 1st. Failure to do so will incur penalty for noncompliance;
  3. The standard Value Added Tax (VAT) in Poland is 23%. The registration threshold is equal to €35,000;
  4. Losses may be carried forward for up to five years, however the annual deduction may not exceed 50% of the loss incurred. Carryback of losses in Poland is not permitted;
  5. Dividends payments to nonresidents suffer 19% withholding tax, unless the rate is reduced by a double taxation treaty (DTA);
  6. Both Interest and royalties payments to non-resident companies are subject to a 20% withholding tax, unless reduced by a double taxation treaty (DTA);
  7. After obtaining a loan in Poland, resident companies incur transfer tax ranging between 1-2% of the final loan amount;
  8. Polish employers are required to pay social security contributions of flat 35% of their staff employment related income;
  9. Capital duty of 0.5% of the amount of share capital is due at the time of company incorporation;
  10. Poland has signed double taxation avoidance agreements with 91 countries including: United Kingdom, Singapore, New Zealand, Kuwait and Philippines;
  11. Healy Consultants will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
  12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

Company regulation

  • Poland’s Business Register allows residents to view i) company’s name, address and tax registration; ii) names and addresses of the shareholders and directors; iii) the amount of paid up share capital;
  • The minimum share capital requirements in Poland are i) €1,200 for a limited liability company and ii) €23,800 for a public limited company;
  • Public limited liability companies, banks and insurance companies require mandatory annual audit;
  • All Poland registered business must maintain a registered office address in the country at all times.

Staff regulations

  • Trial periods in Poland may not exceed three month period;
  • All employment contracts must be translated into Polish. Non Poland speaking employees must also be provided with a contract copy in a language they understand;
  • The minimum wage is fixed at €462 per month;
  • The standard work week typically is i) fixed at maximum 40 hours of work; ii) Monday to Friday and iii) All employees are entitled to
    • Up to 20 days of paid annual leave;
    • 13 days of national holidays and;
    • 10 days of sick leave;
    • 20 weeks of paid maternity leave;

  • Employers may suspend their employees’ employment contract in case of i) work is performed in clear violations to and ii) serious breach of basic employee duties (drinking alcohol at work and leaving the workplace without justifiable cause);
  • All claims resulting in labour conflicts are handled by specialized Labour courts, which are separate organizational units of district courts;
  • In accordance with The Polish Labour Code all employees require a minimum termination notice of:
    • two weeks if employed for less than 6 months;
    • one months if employed for more than 6 months;
    • three months if employed for more than 3 years.

Other business regulations

  • Poland is part of the European Union since 1st of May 2004. Consequently, multiple business laws follow the European Union guidelines;
  • The country is part of the Schengen Area since 21 December 2007 allowing border-free travel of up to 400 million citizens;
  • Poland is a member of the World Intellectual Property Organization, which allows i) all foreign companies to apply for either patent or a trademark and ii) foreigners the same intellectual property protection conferred to Poland nationals;
  • Poland has acceded to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (the New York Convention). Therefore, arbitration awards made in countries that are party to this convention should be enforceable in Poland according to the provisions of the convention

Contact us

For additional information on our accounting and tax services in Poland, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar