Taxes in Poland

There are two things certain in life – death and taxes. Is there anyone who has not came across this piece of knowledge? Tax compliance is a very important issue for any company in Poland and elsewhere.

Taxation in Poland is characterized by its complexity and plethora of regulations. The most important fiscal acts are The Tax Ordinance Act, The Goods and Services Tax Act, The Corporate Income Tax Act and The Personal Income Tax Act.

Tax obligations depend to a large extend on the legal structure a given company has. For example, the self-employed pay the Personal Income Tax, or PIT. Limited liability companies, on the other hand, have to settle the Corporate Income Tax, or CIT. Currently, the CIT tax rate in Poland is 19%. However, there is some talk of the government plans to bring it down.

This is not all when it comes to taxes in Poland. There are numerous other taxes apply to entrepreneurs in the country. The most common tax is of course the Value Added Tax, or VAT. This specific duty applies to the sale of goods and services, export and import of goods, as well as intra-Community transactions (i.e. transactions carried out between EU member states).

There are several VAT tax rates: 23% for most goods and services, 8% for transport, construction, restaurants, 5% for food, newspapers and books. Under certain conditions, 0% VAT rate may be applied.

Another popular tax is excise duty. In Poland, it is paid with regard to such products as petrol, LPG, electricity, alcohol (including beer and wine), cigarettes, and cars. Other taxes present in Poland are vehicle tax, real estate tax, forest tax, and agriculture tax.

Poland is a member of the European Union Customs Union. It means that for transactions within the European Community no customs are imposed on traded goods or services.