The Tax Office Imposes Higher Fines Compared to Last Year

In the first half of this year, the KAS authorities imposed almost 20% more fines for tax offices as compared to the same period last year. The total amount of penalty fines increased by nearly 60% within 12 months. The fined people paid an average of PLN 709, i.e. about PLN 180 more than the year before. From January to June this year, KAS authorities imposed 50,203 penal tickets for tax offenses and misdemeanors. It’s about 19.4% more than in the same period last year.

Details of Tax Offices in Poland:

In the first half of this year, the majority of fines for tax offenses and petty offenses were imposed by the Tax Administration Chamber in Warsaw – 8,769 (in the first half of 2021 – 6,905). Then we have IASs in Lublin – 8,435 (8,189 – 1st place in the first half of last year), Katowice – 3,384 (2,999), Rzeszów – 3,257 (3,111) and Białystok – 3,084 (2 351).

On the other hand, the lowest number of such cases was recorded in Opole – 954 (1,133), Kielce – 1,135 (965), and Olsztyn – 1,246 (1,006). Apart from Opole (from 1 133 to 954), this was also the case in Łódź (from 2055 to 2052) and Zielona Góra (from 2910 to 2762).

In the first six months of this year. KAS authorities imposed penal fines for tax offenses and petty offenses in the total amount of nearly PLN 35.6 million. That’s 59.9%. It’s more than in the same period last year when they amounted to approx. PLN 22.3 million.

– Of course, the increase in the number of fines issued for tax office and petty offenses may mean looking for additional funds for the state budget. For many years we have been observing a tightening of the course in this direction. In my opinion, nothing will change shortly, and may even worsen – emphasizes tax office advisor Natalia Stoch-Mika.

According to her, the tax offices and fines issued for some time are too high and disproportionate to the committed act. Taxpayers often receive very large penalties for unknowingly committing an offense that does not reduce funds in the state budget in any way.

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.