Polish Government Has Plans to Change Employment Regulations

Henryk Kowalczyk from the Permanent Committee of the Council of Ministers revealed the government is working on a new tax. Officials want to get more money by targeting entrepreneurs hiring seasonal workers. This mainly concerns farmers who employ fruit and vegetable pickers in the summer and autumn. Another important sector employing seasonal workers is construction. Seasonal workers are for the most part unskilled laborers, often from across Poland’s eastern border, mainly Ukrainians.

Officials want seasonal work to be taxed with a lump-sum levy. Henryk Kowalczyk mentioned a monthly amount of 300 PLN. Kowalczyk did not give out many details but was quite certain the new regulations would be in force in 2018. The Ministries of Development, Finance and Agriculture are to commence work on the new laws in September.

Apart from accruing revenue to the budget, the new solution is to enable closer government scrutiny over the number of foreigners working in Poland. Currently, government agencies know only the number of employment permits issued to foreign nationals. They do not know, however, how many of them actually arrive here and take up work in our country. As officials claim, this issue is important from the point of view of national security.

Meanwhile, the media has been recently speculating that the Ministry of Finance is preparing regulations on imposing state levies on civil law employment contracts, in particular contracts for the performance of a specific work. If this were the case, people working on an occasional basis would gain access to public healthcare and set money aside for a state pension.

This will of course come at the price of lower remuneration. Employers and employees alike may not be pleased about this idea. On the other hand, state officials argue that all employment contracts should be treated the same from the point of view of fiscal regulations.

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.