Poland legal and accounting and tax considerations in 2024

Tax and legal obligations for Poland companies

  • Corporate income tax considerations

    1. The corporate tax in Poland is levied at a standard rate of 19%. A lower rate of 9% is however applicable to companies with a turnover of less than €1.2 million and an income to revenue ratio of less than 33%;
    2. R&D activities related to IP rights are taxed at 5% under the IP box regime;
    3. Net capital gains are aggregated with other sources of income and taxed at the standard corporate income tax rate of 19%. Local venture capital companies can be exempt from capital gains tax under certain conditions. Revenue accrued from trading in virtual currencies is a capital gain under the revised Polish tax regime;
    4. The Value-Added Tax (VAT) is imposed at a standard rate of 23%. A reduced rate of 5% or 8% is however applicable to certain goods and services;
    5. A 20% withholding tax is applicable on interests and royalties paid to non-resident entities unless reduced under a double tax treaty or the EU interests and royalties directive;
    6. Dividends paid to non-resident entities suffer a 19% withholding tax, unless the rate is reduced by a double taxation avoidance agreement (DTAA) or exempt under the EU parent-subsidiary directive.
  • Poland tax administration

    1. Companies are permitted to choose their 12-month fiscal year and must i) self-asses and pay annual taxes within the year and ii) file annual tax returns with the Ministry of Finance within 3 months following the tax year-end;
    2. Losses may be carried forward for up to five years, however the annual deduction may not exceed 50% of the loss incurred. A tax loss carryback is not permitted in Poland;
    3. Companies with annual revenue of more than PLN 200,000 are required to register for VAT. Monthly Value Added Tax (VAT) returns must be paid and submitted electronically within 25 days following end of the taxable month;
    4. Poland has signed double taxation avoidance agreements with 90 countries including United Kingdom, Singapore, New Zealand, Kuwait and Philippines among others.
  • Other tax considerations

    1. After obtaining a loan in Poland, resident companies incur transfer tax ranging between 1%-2% of the final loan amount;
    2. Polish employers are required to pay social security contributions at a rate of 16.93% of their employees’ gross salaries;
    3. Capital duty of 0.5% of the amount of share capital is levied at the time of company incorporation;
    4. Healy Consultants Group’s Poland tax planning services are tailored to meet the precise needs of international entrepreneurs. Unlike many corporate services providers, we take a global approach to our tax planning services, thinking ‘outside the box’ to provide a creative solution which fits your needs;
    5. It is important our Clients are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfil those obligations annually. Let us know if you need Healy Consultants Group’s 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

External readings

Contact us

For additional information on our accounting and tax services in Poland, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
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