As the Price of Energy Resources Increases, the Polish Government Helps Families with $650

The Polish government will help households with a one-time payment of 3,000 zlotys ($650) to cope with the rising price of energy, particularly coal, caused by Russia’s invasion of Ukraine. Reuters agency reports on this.

Households and heating factories in small towns mainly used Russian coal because of its high quality, although the European Union has banned imports from Russia since August.

The Factors Involved in the Price of Energy:

The rise in prices caused by the shortage has many Poles afraid that they will not be able to heat their homes next winter. Only those households that mainly use coal for heating will have the right to receive the subsidy.

Up to 80% of Poland’s electricity generation comes from coal. Although the country is the largest producer of this resource in the European Union, it still needs to buy 8 million tons from Russia in 2021 and this year’s deficit is up to 11 million due to a decrease in local production.

The country also introduced subsidies this month to keep the price of energy for small buyers at last year’s levels, although retailers are reluctant to participate in the scheme because they believe the payments do not compensate for rising market prices.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our VAT and tax advisory, or contact us for a free consultation.