TKEG Expat ™ Poland Corporate Tax Guide

Standard Corporate Income Tax Rate:
The current standard CIT rate is 19%.
Polish tax residents are subject to tax on their worldwide income. Non-residents are taxed only on Polish-sourced income.

Reduced rate: A 9% reduced CIT rate applies to small taxpayers (revenue not exceeding PLN 2 million equivalent in the prior year) or newly started businesses (first tax year, subject to conditions).

Pillar Two – Global Minimum Tax:
Poland has implemented Pillar Two legislation (Global Minimum Tax). Top-up taxation is effective from 1 January 2025. Multinational groups subject to Poland Pillar Two rules may be required to pay a top-up tax if their effective tax rate in any jurisdiction falls below 15%.

Dividends and interest/royalties withholding:
Revenues from dividends, interest, and royalties are subject to special CIT withholding rates of 20% on interest and royalties (paid to non-residents) and 19% on dividends (paid to both residents and non-residents). Resident companies may benefit from a participation exemption on dividends.

The standard Personal Income Tax (PIT) rate in Poland is 32%, with an additional 4% solidarity tax on incomes exceeding PLN 1 million. PIT returns are due by 30 April, and the final payment is also due on this date. Estimated payments are made by the 20th day of the month following the month in which the income was earned.

In Poland, Withholding Tax (WHT) rates for dividends, interest, and royalties vary. For residents, the WHT rate is 19%. For non-residents, WHT rates are also 19% for dividends and either 20% or 19% for interest and royalties, depending on the case.

Poland’s Value-Added Tax (VAT) applies to the supply of goods and services within the country, with exports and imports also subject to VAT under specific conditions. The standard VAT rate is 23%, with reduced rates of 8%, 5%, and exemptions for certain goods and services. Basic food products have been temporarily reduced to 0% from February 2022 to December 2023 to counteract inflation.

Property tax in Poland is imposed on buildings, structures, and land based on their area or purpose. Rates are determined by municipalities, with business premises taxed at PLN 1.34 per square meter for land and PLN 33.10 per square meter for buildings. Residential properties have a lower rate, with buildings taxed at PLN 1.15 per square meter. Legal persons must submit tax returns by 31 January each year, with payments made monthly.