Doing business in Poland

General rules

Doing business in Poland involves meeting a number of formal requirements. When it comes to taxation, the most important thing is to register and obtain a tax identification number (NIP), which is used for all communications with the tax office.

In practice, it is also necessary to register as an active VAT taxpayer for domestic transactions and as an EU VAT taxpayer for international transactions.

Tax rates

The standard VAT rate in Poland is 23%.

The standard rate of CIT (corporate income tax) is:

• 9% (for small taxpayers with revenues of less than €2 million per year).
• 19% (for other taxpayers).

PIT (personal income tax) rates depend on the type of income.  In the case of income from dividends, the rate is 19% (irrespective of the amount of income), while in the case of income from an employment contract, the rates depend on the amount of income and are as follows

• 0% (income below PLN 30,000)
• 12% (income between PLN 30,001 and PLN 120,000)
• 32% (excess of income above PLN 120,000).

Reporting obligations

In order to comply with tax regulations, it is necessary to submit tax returns.

For VAT, these are submitted monthly (by the 25th of the following month).

Personal income tax declarations are to be submitted by 30 April of the year following the tax year.

The frequency of filing corporate income tax (CIT) returns is dependent on the chosen taxation form.

In the majority of cases, declarations must be submitted electronically - it is often not possible to file them in paper form.

Our services

If you need help with the formalities of doing business in Poland or if you need assistance in choosing the most favourable method of taxation - please do not hesitate to contact us.