No changes to Polish tax system in 2017

Polish Prime Minister has just informed about stopping the process of modifying Polish fiscal system, strongly ensuring that in 2017 it will keep functioning unchanged.

In practice, the statement is a very important signal, especially in view of the recently appearing numerous not entirely clear for the public, information about an upcoming revolution. Prime Minister Beata Szydło decided to convey a clear message right after Deputy Prime Minister Mateusz Morawiecki announced the decision about resigning from the introduction of the unified tax that had been in plans for some time. Presently, we already know that the changes will not be implemented, but still it does not mean the government has stopped working on the creation of a new, more tight system. The issue turned out to be much more complex than initially assumed, which was the deciding factor behind prolonging the work.

As a proof of the systematically obtained effects of government actions, Prime Minister Beata Szydło cited the data on this year’s budget, which recorded income higher by as much as 17 billion PLN in comparison with the previous year. She also highlighted the fact that the regulations that will come into effect right after the New Year concern merely tightening of the tax system.

The Prime Minister also remarked on the resignation from introducing the unified tax. She remarked on her earlier promise about making the decision on the tax before the end of the year and stressed it had just been made after many months of analyses, fully taking into account the interest of the entrepreneurs. The Prime Minister assured the government work is concentrated on obtaining high economic growth in a responsible way. What is connected with this, is a need to create conditions maximally beneficial for investment and as a result assuring stability and certainty of the fiscal system. Prime Minister Szydło indicated two spheres being the priority for the future amendments projects: prosocial and pro-investment for entrepreneurs.

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.