Poland's Tax System and Regulatory Framework in 2025

Poland operates under a territorial tax system, where corporate income is taxed based on revenue generated within the country. Subsidiaries of foreign companies incorporated in Poland are treated as Polish tax residents and are subject to domestic tax regulations. Non-resident enterprises are taxed only on income sourced from within Poland, unless otherwise stipulated by double taxation treaties with third countries. The Polish tax landscape includes 14 main types of taxes—11 direct and 3 indirect. Direct taxes encompass corporate income tax, personal income tax, inheritance and gift tax, civil law transaction tax, agricultural tax, forestry tax, property tax, vehicle tax, tonnage tax, mineral extraction tax, and shipbuilding tax. Indirect taxes include value-added tax (VAT), excise duties, and gambling tax. For comprehensive details, visit the official website of the Polish Tax Authority.

Key Taxes and Rates in Poland

Corporate Income Tax

Poland applies a uniform corporate income tax rate of 19% for both domestic and foreign-owned businesses. Resident companies—those incorporated in Poland or with effective management located there—are taxed on their global income. Non-residents are liable only for income derived from Polish sources. Since 2019, a preferential rate of 9% has been available for small taxpayers whose annual revenue does not exceed EUR 2 million, as well as for newly established businesses operating for less than one year. Monthly tax prepayments must be made by the 20th of the following month. Eligible small businesses may opt for quarterly payments, due by the 20th of the month after the quarter ends.

Personal Income Tax

An individual is considered a Polish tax resident if their center of vital interests lies in Poland or if they stay in the country for more than 183 days in a calendar year. Residents are taxed on worldwide income, while non-residents pay tax only on Polish-sourced earnings. Poland employs a progressive personal income tax structure: income up to PLN 120,000 is taxed at 12% (with a tax reduction of PLN 3,600), and income exceeding this threshold incurs a base tax of PLN 10,800 plus 32% on the excess. Taxpayers typically make monthly advance payments, due by the 20th of the subsequent month. Freelancers and certain professionals may choose lump-sum taxation on registered income. Annual tax returns must be filed by April 30 of the following year.

Value-Added Tax (VAT)

VAT applies to the supply of goods and services within Poland, levied on the value added at each stage of production and distribution. Standard VAT rate is 23%, with reduced rates of 8%, 5%, and 0% applicable to specific goods and services such as food, books, medical supplies, and exports. Most businesses file VAT returns monthly, with payment due by the 25th of the following month. Small-scale taxpayers can elect quarterly reporting, easing administrative burdens for startups and SMEs.

Property Tax

Local municipalities set property tax rates within limits defined by the Act on Local Taxes and Charges. The maximum rate for commercial land is capped at PLN 1.16 (approximately EUR 0.25) per square meter, while commercial buildings face a cap of PLN 28.78 (around EUR 6.30) per square meter of usable area. These rates support regional fiscal autonomy while maintaining national oversight.

Excise Duties

Excise taxes apply to specific goods listed under Polish law, aligning with EU-wide standards. Products subject to excise include alcohol, tobacco, energy products (such as refined oil, natural gas, and coal derivatives), passenger vehicles, and electricity. These duties aim to regulate consumption and generate stable revenue streams for public services.

Digital Services Tax (Video-on-Demand Tax)

Commonly known as the "Netflix tax," this 1.5% levy targets providers of video-on-demand services in Poland. The tax base is the higher of either service fees collected or revenue from commercial advertisements displayed. Introduced to ensure fair contribution from digital platforms, it reflects Poland’s efforts to modernize its tax framework in response to evolving business models.

Carbon Emission Tax

As part of its climate strategy, Poland imposes a carbon emission tax. On July 12, 2023, the price reached PLN 393.71 per metric ton of CO₂. While primarily linked to the EU Emissions Trading System (ETS), this figure indicates growing emphasis on environmental accountability in fiscal policy.

Stamp Duty

Stamp duty applies to certain legal and administrative acts in both public administration and commercial contexts. Fees generally range between PLN 5 and PLN 100, depending on the nature of the transaction. This nominal charge supports documentation integrity and governmental record-keeping.

Civil Law Transaction Tax

This tax covers various civil transactions. Loans are taxed at 0.5%, share acquisitions at 1%, and purchases of passenger cars at 2%. It serves as a mechanism to capture revenue from high-value legal agreements and asset transfers.

Bank Surcharge Tax (Tax on Excess Bank Assets)

Financial institutions—including domestic and foreign banks and cooperative savings and credit unions—with total assets exceeding PLN 4 billion are subject to an additional surcharge. This measure aims to promote financial stability and redistribute tax liability among large banking entities.

Solidarity Tax

Individuals earning over PLN 1 million annually are required to pay a solidarity surcharge of 4% on income above this threshold. Designed as a progressive tool, it contributes to social equity and funds public welfare initiatives.

Special Economic Zones and Investment Incentives

Economic Zone Regulations

Poland’s special economic zones (SEZs) are managed by joint-stock companies in which central and local governments hold majority stakes. Legal foundations include the Special Economic Zones Act and the Support for New Investments Act, which streamline regulatory processes and enhance investor confidence.

Overview of Special Economic Zones

Poland has established 14 SEZs across its 16 provinces, offering significant tax relief to qualifying businesses. Following the implementation of the Support for New Investments Act, geographical restrictions have been lifted—effectively treating the entire national territory as a unified investment zone. This shift encourages broader regional development and equal opportunity for economic growth nationwide.

Regional Aid Intensity

In line with EU state aid rules, companies investing in regions where GDP per capita is below 75% of the EU average may qualify for public subsidies. This criterion promotes balanced development and attracts capital to less affluent areas.

New Investment Incentives

'New investments' include capacity expansion, product diversification, and process modernization. Support packages may combine national, local, and EU funding sources. Qualifying projects benefit from corporate income tax exemptions, payroll tax reductions, and grants. Detailed eligibility criteria and quantitative assessment tools are available through the Polish Agency for Enterprise Development (PARP). Notable beneficiaries include multinational manufacturers setting up R&D centers in Lower Silesia and green technology firms expanding operations in Lublin. Additionally, tech startups in Warsaw have leveraged these incentives to scale rapidly while minimizing initial tax exposure. For tailored guidance on structuring cross-border operations, consider consulting SailGlobal, a leading provider of international HR and compliance solutions specializing in European market entry.