“Sealing Package” Tax Changes in Poland

The government is to start the consultations on the “Polish Deal” program or sealing package. Increasing the tax-free amount, the second tax start or even changes in the health service will cost up to 70 billion a year – according to government documents.

Not everything can be compensated by such changes as the new method of collecting health insurance contributions – the inability to deduct tax and pay the premium as a lump sum in the case of entrepreneurs. Therefore, part of the “Polish Deal” will also be the so-called sealing package, which – according to the estimates of the Ministry of Finance – is to bring six billion zlotys in 2022, and nine billion in 2023.

The Importance of Sealing Package:

According to Jan Sarnowski, the deputy finance minister, the sealing package will be subject to consultations from 14 July. The ministry intends to limit the shadow economy in several ways. The first is to lower the permissible limit of cash transactions between entrepreneurs from the current 15,000 PLN down to 8,000 PLN.

Entrepreneurs will also have to (from July 1, 2022) accept at least one form of online payment (via a payment terminal, bank transfer, or telephone payment). The rule will apply to those whose annual income will exceed PLN 20,000 PLN.

If the sealing package comes into force, the rule of removing post-leasing cars from the company will also change. The current regulations allow buying a car for private purposes after paying the leasing installments. According to this, you can sell this vehicle without paying income tax after six months. If the car remains in the company’s assets, the sale is possible only after six years. That is why the ministry wants to change the regulations and classify revenues from the sale of a post-leasing car purchased as personal property as revenues from business activity.

Also, it will be more complicated to transfer the company outside Poland, as the government intends to increase the number of events covered by the exit tax. According to Jan Sarnowski, the Polish regulations need to be supplemented because they only apply to an ordinary move out of Poland, and not to other activities with the same effect, e.g. merging a Polish company (branch) with a foreign concern.

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.