| Annual Income (PLN) |
Tax Rate |
| Upto 85.528 PLN |
18% |
| Over 85.528 PLN |
32% |
Income amount free of tax :3091 PLN
Employer deducts income tax and social-security contributions from salary.
If your salary is your only source of income and you submit a special form to your employer, you are not obliged to file an annual tax return.
Poland Personal income tax
Residence
Individuals who have their permanent residence or habitual abode in Poland are treated as residents. An individual has his habitual abode in Poland if he/ she is present in Poland for at least 183 days (in aggregation) in a calendar year (except individuals who stay there for the purposes of studying, receiving medical treatment, or who cross the borders of Poland on a daily basis or in the agreed upon intervals exclusively for the purposes of performance of his/her dependent activity, the source of which is located in the territory of Poland).
All other individuals are treated as non-residents.
Taxable income - Individuals who are residents for tax purposes in Poland are taxable on their worldwide income.
Taxable income of an individual is usually calculated by
aggregating the separate
net results of the following income categories:
- employment income;
- business activity;
- independent professional activities and income from the use of
work and art
performance;
- rental income;
- sale of real property;
Complaint and Appeal
If you disagree with your tax assessment, you can appeal to the director of the tax chamber. If your appeal is rejected, you may take your case to the administrative court.
Resident companies
Foreign income and capital gains - Resident companies are
subject to tax on
their worldwide income and capital gains. Taxable amount is
generally calculated
in the same way as in the case of domestic income.
Foreign losses - Losses of foreign permanent establishment
(calculated based on
Polish tax rules) may be offset against domestic profits unless,
on the basis of an
applicable double tax treaty, the exemption method applies for
double tax relief.
Dividend income paid by non-resident company - Dividends paid out of profits are taxed at tax rate of 19% unless rule implementing EU Parent-Subsidiary Directive applies.
Double taxation relief - No unilateral double taxation relief is provided. Double taxation is relieved only on the basis of tax treaties.
Non-resident companies
Taxable income
Non-resident companies are taxed only on income derived from Polish sources. They are generally taxed according to the rules applicable to residents. Income attributable to a Polish permanent establishment is generally taxed at 19% rate through a tax return (self-assessment).
Withholding tax
Generally, 19% withholding tax or tax security is levied (unless limited under a tax treaty). For interest and royalty payments EU Interest and Royalties Directive was implemented.
Dividend paid by resident companies to non-resident - Dividends
paid out of
profits are (unless rules implementing EU Parent-Subsidiary
Directive apply)
subject to a 19% final withholding tax, unless a reduced rate
applies under a tax
treaty.
Poland Income Tax Rate for Individual Tax Payers
Lowest Individual Tax Rate is 18% and Highest Rate is 32%
| Annual Income (PLN) |
Tax Rate |
| Upto 85.528 PLN |
18% |
| Over 85.528 PLN |
32% |
There is an initial allowance of PLN 3,091 on the lowest income bracket.
An individual pays tax on his income as a wage earner or as a self-employed person.
The tax for an individual who meets the criteria of a "permanent resident" in Poland will be calculated on his income in Poland and abroad.
A foreign resident who is employed in Poland pays tax only on his income earned in Poland.
An individual is a Polish resident if the center of life is in Poland, or if staying in Poland more than 183 days in a fiscal year.
An employer is obligated to deduct, immediately on a monthly basis, the tax payable on an employee's salary.
A self-employed person must prepay income tax that will be offset on filing an annual return.
The advance payment is determined on the basis of the return made for the previous year.
In the event of a new business, the advance will be calculated on the basis of estimates made by the owner of the business.
Certain payments are deductible from taxable income as detailed below.
Corporate Tax Rates in Poland
Corporate Income tax rate is 19%.
Capital Gains Tax in Poland
In general, there is no special tax rate for capital gains in Poland.
Capital gains are usually added to the regular income of an individual/company and based on the normal tax rates.
Despite this, if real estate is sold by an individual more than 5 years after it was purchased the capital gain is exempt from tax.
Sale within 5 years from the date of purchase is taxed at 19%.
Individual's capital gain from sale of shares is taxed at a final tax rate of 19%.
In Poland dividend and interest income for individuals is taxed at 19% rate.
Tax Deductions at Source in Poland
Tax is deducted at source from the following payments to nonresidents according to the table below:
Dividend 19%
Royalties 20%
Interest 20%
Services 20%
Branch Remittance 0
Note - The deduction at source for a dividend, royalties and interest for foreign residents is subject to the Double Taxation Prevention Treaty. Dividends received by a resident company from an EU/EEA/Polish company are exempt from deduction at source.
The tax year in Poland is the calendar year ending on December 31.
An Individual -An individual whose income is from a salary only is not obliged to file an annual return.
The employer who deducts income tax from the employee transfers the tax to the tax authorities each month.
An individual who is self-employed is obliged to make 11 monthly advance payments.
Each advance must be made by the 20th day of any month for the previous month (in December, an advance is paid for both November and December).
A Company -Payment of advances on tax is similar in the case of a limited company to that of the individual.
The company is obliged to file an estimated return to the tax authorities by March 31, and to pay the difference in the tax.
The latest date for filing an annual return is September 30 (for the previous year)