Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Poland
New tax reform: No specific information
New tax treaties:
- Tax treaty between Poland and Taiwan enters into force.
Local tax advisors
No specific information on the local tax advisors.
The definition of Permanent Establishment follows the wording of article 5 of the OECD Model:
- Dependent agent who habitually concludes contracts in the name of a non-resident company (except if the activity is limited to purchase of goods);
- Fixed place of business, building site, construction, assembly or installation and any related supervisory activity.
Resident companies are taxed on their worldwide income.
The definition of resident company for tax purposes, corresponds to the definition of the OECD Model Convention. As per article 4 of the OECD Model Tax Convention, a person is treated as resident of a contracting state if he is liable to tax in such a country by virtue of his domicile, residence or place of management or any other similar criterion.
Entities are considered to be resident for tax purposes in Poland if their place of management & control is in Poland.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 19%.
Small companies (revenues less than around 1.2mUSD) are taxed under a 15% CIT tax rate.
Dividends and other incomes derived from shares are subject to a 19% domestic WHT (no participation exemption).
Non-taxable income includes the following:
- Certain dividends received from qualifying participations
- Certain capital gains deriving from qualifying participations
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption
- Interest in excess of the thin-capitalization threshold
Carry forward: Yes 5 years, but some restrictions may apply.
Carry back: No
Companies should submit the tax return annually before the third month of the following year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay monthly advance payments during the current taxable year.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Poland are the following, subject to the provisions of an applicable double tax treaty, if any.
There is no WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 19% of the gross amount.
The general rate of WHT on interest is 20%.
The general rate of WHT on Royalties is 20%.
The general rate of WHT on management fees is 20%.
The general rate of WHT on technical services is 20%.
Generally, capital gains are taxed under the regular CIT as general income.
Standard VAT tax rate is 23%
Reduced tax rates are:
- 8% (among others, certain agricultural products, medicines, passenger transport, cultural services, …);
- 5% (among others, food, books, certain newspapers and magazines)
Zero-rated supplies include, subject to certain conditions:
- exports of goods;
- intra-Community supplies of goods;
- Certain international transport services;
Exempt supplies include, subject to certain conditions:
- Certain financial services
- Certain insurance services
- Training and education
Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.
EU taxable companies may claim a VAT refund to their own tax authorities through on the basis of the 13th EU Directive.
In case where for a tax period, Input VAT exceeds Output VAT, certain non-resident companies (which are not required to register and incur Poland-VAT in the course of their business activities in Poland) may apply for a refund under the same conditions than resident companies.
Refunds are subject to the reciprocity principle, which means that Poland only refunds VAT to foreign companies in countries that offer similar refunds to Poland companies.
No other specific information of VAT in Poland.
The general statute of limitation is 5 years starting at the end of the year in which the tax return had to be filed.
There is no foreign exchange control in Poland. Income and capital could be freely repatriated.
There are thin capitalization rules in Poland. The interest derived from loans between related parties may not be deductible in case where interest exceeds some ratios (3 times the taxpayer’s net equity).
Do not hesitate to share your experience in Poland with us in the comments below. Any comments are welcome !