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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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