OECD on Poland’s Economic Growth

Organization for Economic Co-operation and Development (OECD) published findings of its 2018 economic survey on Poland. In the document, the organisation looks at the country’s economic status and development in such areas as investment, labour market, state deficit and overall GDP performance. The result is an overview of the current condition of Poland in terms of the state economy and the likely positive and negative outcomes of the current state of affairs.

The intergovernmental organisations’ experts call Polish GDP growth, which recently exceeded four per cent, strong. The living standards of the Polish population have been rising for many years. Today, the situation in the job market is better than ever before.

The OECD Steps to Grow Poland’s Economy:

Unemployment is record-low, and wages are rising along with consumer spending. Individual consumption is accelerated due to a big economic backup in the form of child benefits that Polish parents have been receiving for two years. The benefits are cited as the cause of a sharp drop in child poverty in the country.

On a less positive note, the OECD stresses the negative effects of demographic changes that today may not be that visible but will strongly impact the state budget as well as the living standards of today’s working population. Pensioners, whose numbers are booming, will stop their professional careers early due to low retirement age restrictions. Early retirement means low pension benefits and a higher risk of poverty in old age. Polish politicians are urged to take rapid action.

The international organisation also calls for more funding for education (especially for vocational training) and research. Government incentives for R&D are described as “insufficient”. The good situation in the labour market translates into labour shortages for Polish businesses. Labour productivity is below the OECD average. After very good 2017 and 2018, GDP growth figures are expected to decline in the upcoming years.

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.