Poland's Taxes
As a rule expatriates and natives pay the
same taxes in Poland. Of course, there are exceptions and
they benefit the former.
Value added tax
(VAT)
VAT is included in the price
of almost every product and service you purchase. Foreigners
can reclaim VAT levied on goods they had
bought in Poland and took abroad (in fact, out of the
European Union). And the tax is naught in case of all
exports to countries beyond the EU. It is also nil as
regards some international transportation services,
financial and insurance products, cultural services, and
agriculture machinery. Otherwise VAT amounts to 5 percent
for unprocessed food and books, to 8 percent for most
foodstuffs, tourist services (e.g. your hotel and restaurant
bills), transportation services (e.g. bus tickets),
children-care goods, newspapers and magazines, health-care
goods, construction and renovation of flats and houses up to
150 sq m and 300 sq m respectively, communal services (e.g.
water distribution) and fertilizers, and to 23 percent for
practically everything else.
As regards
real estate the Value Added Tax for
newly built residential property is 8 percent for flats
of 150 sq meters or smaller and houses of 300 square meters
or less. Any surface area above the limit is taxed at 23
percent.
Excise duty (Polish 'akcyza')
It's a ‘sin tax’ of sorts, included alongside VAT in the price of
such products (both domestic and imported) as tobacco, alcohol,
motor fuels, playing cards, firearms, cars, yachts and boats.
Some form of it is also a gaming tax (Polish "podatek of gier")
paid either on receipts (i.e. lotteries) or on revenues (e.g.
slot maichines) from gambling.
Other indirect duties.
Besides the value added tax and the excise duty there are also
other imposts providers of some goods and some services are
required to add to the price of their commodity in Poland and
next transfer the proceeds to the public purse. For instance in
the price of motor fuels have been included road maintenance
levy since 1997.
Personal income tax (PIT)
The income tax is paid both by Poland’s citizens and by permanent
residents. Having lived in the country for 184 days or more
over a calendar year the latter have their overall income
taxed unless they represent foreign company in Poland or
work for a corporation established with foreign capital.
Otherwise only the Polish earnings are taxable. The personal
income tax is paid on a monthly basis and the deadline for
yearly tax returns is April 30.
In 2017 the top personal income-tax rate is levied on earnings
above 85,528 Polish zloties per year and it amounts to 32
percent. The first 3,091 zlotys earned in the year are free of
tax, while income exceeding this figure but lower than 85,528
zloties is taxed at 18 percent.
Separately taxed are one-off earnings. For instance receipts
from interest and intellectual property are subject to a flat
tax of 20 percent. Also, dividends are taxed at 15 percent,
while profits from stock sales incur 19-percent tax. Receipts from
real estate
sales are taxed at 10 percent for properties acquired in the
years 2001 to 2006, whereas sellers of estates purchased in 2007
or later pay the 19-percent tax on the profits less costs such
as fees of the notary public.
Please note that Poland has tax treaties with 60-plus nations,
including the USA, the UK, and Germany alongside the rest of
developed countries, which ensure no income is taxed twice.
Corporate income tax (CIT)
The corporate income tax applies to firms operating in Poland. Companies incorporated or headquartered in
Poland are subject to CIT on their overall income, the rest only
on the chunk earned on the Polish soil. Net proceeds, less
depreciation of fixed assets and intangibles, are liable to
19-percent CIT for companies with gross earnings exceeding euro
1.2 million over the previous year while those with lower past
year's revenues pay 15-percent tax.
Loss incurred one year can be offset against
income over five subsequent years. And, sure thing, there are
various allowances and exemptions.
Local taxes
There are local taxes such as
real estate
tax, transportation tax imposed on trucks and buses, inheritance
and donations tax, agricultural tax, forestry tax, dogs tax.
Their rates are voted by
local governments
(e.g. the city council) but they
cannot exceed limits set by general law.
Note: inheritance, donations, and loans from the immediate
family – i.e. parents, stepparents, grandparents, children,
stepchildren, grandchildren, spouses, and siblings have been
free of tax since January 1, 2007 but one needs
to file an appropriate tax return no later than 30 days
after the fact.
Stamp duties
The stamp duties apply to such legal acts as applications to authorities, certain
documents, official certificates, permits, etc.
Also commercial deeds – such as sale and exchange contracts,
loan agreements, articles of association, etc. – are subject to
a stamp duty of sorts called 'podatek od czynnosci
cywilnoprawnych'. It applies to transactions dealing with goods
situated in Poland or property rights exercised in Poland, and
also whenever the purchaser has its registered office or
residence in Poland and the acquisition takes place in Poland.
For instance, one pays two percent of the market value of real
estate or other goods being sold or swapped, between 0,1 percent and
two percent
of the authorized capital under articles of association, and two
percent of the sum a company borrows.
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