Lower Taxes for Micro-Enterprises and Other Ways to Help Businesses in Poland

The congress series “Politics from the Scratch” started in Poland at the beginning of May, this year with low tax on Micro-enterprises. The agreement of Jarosław Gowin started a chain of 15 meetings as part of the “Policy from the Scratch” series. Politicians, local government officials, experts, and entrepreneurs attended the program’s conference. At the opening of the congress, we learned that the program is comprehensive and developed by over a hundred experts.

“Our program aims to restore the economy to the path of growth. We know that private property works mainly in the economy. We want to defend the middle class, which contributed to the development of Poland” – said Jarosław Gowin during the Agreement congress. Deputy Prime Minister Gowin also announced an increase in defense spending and a greater share of local governments in taxes.

The Importance of Micro-Enterprises Agreement:

The agreement of lower tax on Micro-Enterprises aims to give local governments a sense of financial stability and create circumstances for meeting basic social needs. For this purpose, a permanent support mechanism is to be created using an investment subsidy for local governments. One such program is the tax reduction for micro-enterprises proposed by the Agreement.

Therefore, the Agreement announces the implementation of the Polish Industrial Policy program.

The Industrial Policy of Poland is a strategic document created this year as part of extensive industry consultations and with the participation of representatives of the Polish industry and experts to develop a catalog of tools supporting the development of the Polish industry and building its resistance to crises.

The tools for the implementation of the Polish Industrial Policy are, the deregulation of regulations (including as part of the legal shield), industry contracts (principles and rules of cooperation of individual industries with the state in a long-term perspective), purchasing policy (an instrument defining the possibilities of using public procurement to support the development of the economy), research agendas and sector B programs.

The aim of the Polish Industrial Policy is also to strengthen Polish exports and effectively position Polish companies on global markets.

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.