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Corporate Tax in Poland

Corporate Tax in Poland

Like many other countries, Poland imposes a corporate tax, also known as a company tax. This is the only applicable corporate income tax in the country, having a  value of 19%. This tax applies on the company’s global income, calculated from all sources. 

In Poland there is a difference between the taxation method concerning resident and non-resident companies. A Polish company will have an unlimited tax liability (its entire income will be taxed) whereas a non-resident entity will only have a tax on the income it produces in Poland (limited tax liability). A company or entity is considered a resident if it’s central management is actually located within the country.

Types of companies that must pay a corporate tax in Poland

Polish corporate taxpayers are:

• limited liability companies, joint-stock companies and other legal entities;

• corporations in formation;

• companies without legal personality having offices or management boards based in another state

• tax capital groups

In Poland, companies must pay the corporate tax income annually and should make advance payments every month. These advance payments will be deducted from the annual tax. Small-business taxpayers (having annual sale revenues under 800,000 EUR) and newly opened businesses in Poland can make the aforementioned payments quarterly.

Companies are not subject to payroll in Poland, however, other obligations arise when hiring employees.

Recent changes to the Polish corporate tax law

Until recently, joint-stock partnerships in Poland (a hybrid type of partnership) were not considered corporate income taxpayers.  However, a new amendment to the Polish Corporate Income Tax (CIT) Act changed all that starting with January 1st 2014. Despite its enforcement, this change does not affect joint-stock partnerships that have a financial year that ending after 31 December 2013.

Initially, Polishlimited partnerships were also targeted to be included on the list of CIT payers. Nevertheless, the Polish Ministry of Finance has not made that change.  This change is believed to influence the real-estate business in Poland because the joint-stock partnership is a form of partnership often used with this type of business.

The corporate tax is just one of the types of taxes applicable in Poland. For more information, the dedicated team from our law firm in Poland can help you with further details and personalized consultancy for your business needs.