Employees and taxes

Employees and taxes

Employee issues are closely tied to tax and social security contributions. The law has a bunch of exemptions and exceptions, but they're not always consistent or clear.

Employee benefits, company social benefits fund

Employee remuneration is only one of the elements linking employee issues to taxes. Much greater doubts and problems in this area are raised, for example, by issues related to the taxation of benefits granted to employees or benefits paid to them from the company social benefits fund.

These issues are important not only for employees (taxable and social security income), but also for employers (tax-deductible costs). This is particularly important in the case of benefits granted to contractors/B2B service providers. In such cases, tax issues may differ significantly from those applicable to employees.

Secondment/delegation of employees

The tax consequences of secondment or delegation of employees raise many questions. Inconsistent court rulings in this area mean that in some cases it is necessary to tax all benefits related to secondment, which significantly reduces their liability.

These issues are even more complicated in situations where an employee performs work from a country other than Poland. In such a case, not only Polish law becomes relevant, but also international law (which in some cases may require such income to be taxed not only in Poland, but also in the country where the work is performed).

Our services

If you are unsure how to tax your employees' income (not only in terms of remuneration, but also benefits, additional allowances or various types of business trips) and have doubts as to the impact of these benefits on your employer's tax settlements (including the possibility of including them in tax-deductible costs) - do not hesitate to contact us.

We also encourage you to find out more about our labour law department.