Electricity Price Prognosis for Medium and Small Companies in Poland

The Polish government will keep the cost of electricity at a decreased level next year for the majority (98%) of companies in Poland.

The prime minister said that the government was going to present a new electricity tax for all small and medium-sized companies (SMEs) next week.

Updates on Companies in Poland:

The development minister Waldemar Buda stated on Saturday that this resolution will cover up to 98% of Polish companies. Buda added that the price of electricity for companies in Poland will be one of the lowest in Europe.

SMEs are companies in Poland that employ up to 250 people. Prices of electricity have been under immense pressure in Poland because of Russia’s war in Ukraine and a following Polish embargo on Russian coal, which comprised a significant part of Polish power plants’ purchases. In addition to this, prices of carbon budgets under the EU’s Emissions Trading System (EU ETS) have increased remarkably, which has raised the operating costs of Polish coal-fired power plants.

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 tax advisory services in Poland, or contact us for a free consultation.