Setup your Business in Poland
Poland has the most stable growth in the Eurozone. Joining the European Union in 2004 helped to boost economic growth, with Poland enjoying an average yearly growth of 4% ever since. Labour and rental costs are lower than in Western Europe. There is also a good education system and big domestic market. All of this means that Poland offers big opportunities for global investors.
The most common types of business in Poland:
Limited Liability Company (Spółka z ograniczonąodpowiedzialnością, sp. z.o.o.)
Branch office (Oddział)
Registered Partnership (Spółkajawna)
Joint-Stock Company (Spółkaakcyjna, S.A.)
Professional Partnership (Spółkapartnerska)
Representative Office (Przedstawicielstwo)
Limited Partnership (Spółkakomandytowa)
Limited Joint-Stock Partnership (Spółkakomandytowo-akcyjna)
Taxes in Poland
Since the early 90s of the 20th century the Polish tax system has been developing gradually. The purpose is to encourage foreign investors to invest in Poland, and as a consequence to create new places of employment. To gain it, the corporate income tax rate was reduced from 40% to 19% and relatively low labour costs. There are only 5 lower than in Poland expenditures on labour among the countries of Central and Eastern Europe.The Polish tax system consists of the following taxes:
1. Direct taxes
Personal income tax – PIT,
Corporate income tax – CIT,
Inheritance and donation tax,
Tax on civil law transactions,
Real property tax,
Transport vehicles tax,
Tax on extraction of certain minerals.
2. Indirect taxes:
Corporate income tax(rate of tax is 19% of tax base)
Tax on Corporate income is charged regardless the kind of revenue sources. The income is an excess of the revenues over the tax deductible costs occurred in the tax year. If the tax deductible costs are higher than the revenues, the difference is a loss. When a taxpayer bears the loss in the tax year, he/she can reduce the income by the amount of this loss in the following five tax years. However, the amount of the reduction in any of these years must not be higher than 50% of the loss amount.
Poland VAT rates
The standard VAT rate in Poland is 23%. There are reduced rates of 8% and 5% on certain food, books, newspapers and the supply of a limited number of other services. A number of services are exempt from Polish VAT, such as financial and postal services.
There are many variations to above rates, including exempt taxable supplies. Contact us if you have any questions.
Our services in Poland
We provide following services in Poland through our affiliates, which are fully compliant with rules and regulations of Ministerstwo Finansów:
Business start-up advice
Bookkeeping and bank reconciliations
Fully outsourced accounts department
Payroll support or fully outsourced payroll managed by us
Tax returns for companies and individuals
VAT refund and payments
Double taxations reliefs
Taxation advice for individuals
Specialist corporation tax services
Property and land transactions planning
Business development and consultancy
Compliance services with local tax authorities
Are you planning to expand into Poland? Make an enquiry today with our expert adviser.