As of May 1st, 2004 when Poland joined the European Union, Polish legislator is obligated to harmonise the internal Polish tax system with EU regulations, particularly with respect to indirect taxes. For that reason most of the regulations related with VAT or excise duty are in the line with similar tax regulations from other EU countries, yet there are still many local specific regulations.
In general the Polish tax system comprises of two main groups of taxes:
|Direct taxes||Indirect taxes|
|Personal income tax!Corporate income tax!Real estate tax!Agricultural tax!Inheritance and donation tax!Tax on civil law transactions!Forest tax!Transport vehicles tax!Tonnage tax!Tax on extraction of certain minerals||value added tax (VAT)!Excise duty!Gambling tax|
For a foreign investor, income taxes and VAT regulations are of key importance.
Income tax is governed by the Corporate Income Tax Act (CIT) and the Personal Income Tax Act (PIT). The answer to the question which regulation should be applied in a particular case depends on the legal form of an entity. The income of a taxpayer will be taxed either with the CIT – for the limited liability companies, the joint-stock companies and the limited joint-stock partnership, or with the PIT – for individuals, also those who are shareholders of limited partnerships or registered partnerships.
Real Estate Tax
The following assets are subject to the real estate tax in Poland:
- buildings or parts thereof,
- structures associated with conducting an economic activity parts thereof
As the real estate tax rates are established individually by each commune and may be vary for investment sites located within different communes. The national law sets the maximum ceiling tor real estate tax rates in amount of:
The real estate tax payer are obliged to submit the declaration to a tax authority competent for the location of objects of taxation, prepared on the form defined by the resolution of community.
Terms of payment:
- For individuals – The tax is payable in instalments proportionate to the duration of the tax obligation: by 15 March, 15 May, 15 September and 15 November of the tax year.
- Legal persons, non-corporate bodies and companies without legal personality – in instalments proportionate to the duration of the tax obligation, by the 15th day of each month, and by 31 January for January.
How we can assist you?
- Optimization of your investment – it is highly advisable to consider taking professional tax advice in how to conduct investment activities in Poland from a tax perspective. The tax optimization of your business in Poland is possible and we can provide you with the list of selected tax advisors, that can support you.
- On-going tax advisory – Operating a business in Poland requires knowledge about local tax regulations. To avoid unpleasant situations or disputes with tax authorities we can provide you with a list of selected tax advisors, that can provide you with professional support.