Poland

Tax rates 2012 Poland

Corporate tax

Rate

The standard corporate tax rate of Poland is 19 %. Corporation tax is imposed on company profits, capital gains and passive income.

Taxation of dividends

Dividends received by a Polish resident corporation from another Polish corporation or an EU/EEA companyare exempt from taxation if certain requirements are met. If exemption does not apply, dividends are subject to taxation.

Capital gains

Capital gains are considered as income and are therefore taxed at the corporate tax rate. Capital gains are taxed at 19 %.

Losses

Losses can be carried forward for 5 years. The deduction of a year may not exceed more than 50 % of the loss incurred. Losses may not be carried backwards.

Withholding tax

Dividend is taxed at 19% withholding tax if the dividend is paid by a Polish resident company to a nonresident company. The rate can be reduced under the EU interest and royalty directive.

The witholding tax is 20 % on interest paid to a nonresident. The rate can be reduced under the EU interest and royalty directive. The transition rules allows Poland to apply a 5 % witholding tax until 30 June 2013.

Royalties to non-residents corporations are subject to a 20 % withholding tax. The rate can be reduced under the EU interest and royalty directive. The transition rules allows Poland to apply a 5 % witholding tax until 30 June 2013.

Fees for some intangible services such as accounting, market research, recruiting, advertising and advisory are subject to a 20 % witholding tax.

 

Individual tax

General

Residents are taxed on worldwide income. Nonresidents are taxed only on Polish-source income. An individual is deemed resident if the individual´s center of economic and personal interest is in Poland. An individual is also deeemed as resident if the individual stays more than 183 days per (tax) year in Poland.

Taxable income

Taxable income for an individual is considered to conclude cash and non-cash benefits coming from employment, self-employment and rental income. Profits from economic activity are subject to almost identical rules to the rules for taxation of corporations.

Rates

Progressive tax rates between 18 % and 32 % are levied on income tax. Individuals carrying out economic activities can apply a 19 % tax rate if certain conditions are met.

Capital Gains

Capital gains coming from the sale of stocks are subject to 19 % tax. Capital gains coming from real estate are also subject to a 19 % tax if the real estate object has been sold within 5 years of its initial aquisition.

Deductions

Deductions include expenses relating to disabled individuals, expenses related to certain types of technical knowledge and donations. Personal allowances are available.

Real Estate

Real estate tax is levied on the owner of real estate. The rates can vary depending on the rules of the particular local authorities.

Net Worth Tax

There exist no net worth tax in Poland.

Inheritance Tax

In general tax rates for inheritance and gifts ranges from 3 % of up to 20 %, with certain tax exemptions available.

Social Security

Social security contributions are 30 %-35 % of an employee´s renumeration. These social security contributions are made by both employers and employees. Self-emplued individuals have separate rules.

VAT

VAT applies to all sales of goods, services and imports/exports. The standard VAT rate is 23 %. Certain goods and services have rates of 5 % and 8 %. Some goods and services are exempt from VAT.

 

Other

Tax year. Calendar year, or 12-month period of choice.

Tax treaties. Poland currently has over 80 tax treaties.

Filing requirements. VAT return, must be filed and VAT due paid within 25 days following the month in which the VAT obligation arose.

Registration (for VAT purpose). Poland applies a registration turnover threshold of PLN 150.000 per calendar year. Nonresidents supplying goods or services in Poland must also register for VAT.

 

Links

Tax authorities. Ministry of Finance, directors of tax chambers, heads of tax offices

Consulate

Local Tax Resources

Chamber of commerce

(Online realtor/stock exchange)