Page 42 - Mazars Central and Eastern European tax guide 2023

Poland VAT options in Applicable / limits Personal income tax / Social security system
Poland PIT is calculated on income. However, the income calculation
differs depending on the source from which the income
Distance selling From 1 July 2021 OSS system is earned (for example, employment contract, sole traders’
is applicable.
Call-off stock ü activity, personally performed activities, etc.). PIT is calculated
Mazars Audyt SP. z o.o. according to a progressive tax scale at a rate of 12% to 32%.
00 - 549 Warsaw, VAT group registration ü A specific rate also applies to individuals pursuing business
Piękna 18, Poland Cash accounting – yearly EUR 1,200,000/ year activities as sole proprietorships or partners in partnerships,
amount in EUR (approx.)
Phone: + 48 22 25 55 200 who may opt for a flat 19% PIT rate. The tax-free amount
Fax: + 48 22 25 55 299 Import VAT deferment ü is PLN 30,000 (depending on the value of the tax base).
www.mazars.pl Reverse charge mechanism applies The income of taxpayers who are under the age of 26 and
to gas supplied in the gas system,
electricity supplied in the electricity receive their income based on: employment relationship,
system and greenhouse gas emission mandate contracts, post-graduate internship and student
Local reverse charge allowance transfer services when such internship, is tax-free up to an amount of income not
supplies are made directly or through
an authorized entity on a commodity exceeding PLN 85,528 in the given tax year.
exchange, a regulated market
Corporate taxes and other direct taxes year as a one-off amount up to PLN 5,000,000. The surplus or an organized trading platform. Employee Capital Plan (ECP): Payments to PPK are made
may be settled in line with the general rule described above. Option for taxation both by the employer and the plan participant. The basic
Polish companies are taxable on their worldwide income. As of 1 January 2022, changes in the regulations concerning payment to PPK made by the plan participant is equal to 2%
Non-resident companies are taxable only on Polish sources debt financing costs entered into force. Expenses for debt letting of real estate For residential purposes (exempt), (as of 1 January 2022, this could be 0.5% when additional
of income, subject to DTT. The standard CIT rate is 19%. financing are qualified as tax deductible costs to an amount for commercial purposes (23%). requirements are fulfilled) of the salary used as the base for
The preferential CIT rate for "small taxpayers" (whose of no more than 30% of EBIDTA or an amount not exceeding supply of used real estate Exempt (additional the calculation of retirement and disability SSC, while the
sales revenue in the previous FY did not exceed the PLN PLN 3,000,000 (depending on which amount is higher). requirements needed). employer pays 1.5% of the salary used as the base for the
equivalent of EUR 2,000,000) is 9%. This rate also applies Interest, royalties and certain types of immaterial services VAT registration PLN 200,000 /year calculation of retirement and disability SSC.
for newly-created entities (additional requirements are paid to non-Polish residents are, as a rule, subject to WHT threshold (approx. EUR 50,000) Personal income falls under the social insurance
needed). In Poland, CIT is generally payable on income. at 20% rate and dividends (or dividend like income) are system: employee’s SC (capped) equals 13.71%;
Tax deductible costs exceeding revenues in any given subject to a 19% WHT rate (unless, in both instances, if not subject to VAT, may be subject to civil law activity tax employer’s contributions equal approximately 20.48%.
FY constitute a loss which may be deducted from income over an exemption or reduced rate is available under an applicable (CLAT), the rates of which are from 0.1% to 2%. Transactions Additionally, the individual is required to pay a 9% health
the next 5 consecutive years (no more than 50% of a loss can DDT or the EU Interest-Royalties Directive exemption related to filling a power of attorney and public administration insurance contribution. As of 1 January 2022, it is not possible
be offset in any one year). Starting from tax losses incurred applies). As of January 2022, a pay & refund mechanism actions (submitting application forms, issuing certificates, to lower the income tax by the amount of the health insurance
in FY2019, it is possible to activate the tax loss of a given tax granting permissions, etc.) are subject to stamp duty. contribution and deduct 7.75%. The examples below show the
entered into force. This only applies to passive payments employer’s and the employee’s costs in case of the minimum
exceeding PLN 2 Million per annum summed for one non-
Transfer pricing in Poland resident. The excess amounts are subject to a base WHT rate wage level and the average wage in the private sector.
Arm’s length principle ü Since 1997 pursuant to the CIT Act (19% or 20%) and only then can the
Documentation liability ü Since 2001 tax remitter apply for a WHT refund if the payment could Wage related taxes in Poland Minimum wage***** Average wage
APA ü Since 2006 be exempt or qualifies for a reduced rate from the proper DTT. in private sector****
It is also possible to apply for an opinion on the application
Country-by-Country of preference (additional requirements are required). Exchange rate PLN/EUR* 4.78 in EUR in PLN in EUR in PLN
liability ü Since 2017 There are also strict restrictions concerning due diligence 729 3,490 1,439 6,884
Master file-local file procedures (e.g., beneficial owner statement; verification
(OECD BEPS 13) ü Since 2017 Total wage cost 890 121.98% 1,755 121.98%
applicable whether the recipient runs a real business activity in its state
Penalty of residence). Employer's social security** 131 17.93% 258 17.93%
Real property tax and transport tax are charged as local taxes Other insurance (approx.) 19 2.55% 37 2.55%
20% (30%) of the amount in Poland. Real property tax is paid by owners of real estate.
of overstated loss or understated Banks and financial institutions are taxable at a 0.0366% rate Contribution to the PPK 1.5% 11 1.50% 22 1.50%
lack of documentation ü income (over PLN 15,000,000) + (monthly levy) of their total assets (exceeding the indicated Gross salary 729 100.00% 1,439 100.00%
late payment interest + personal
liability of the members of the minimum value). Employees` contributions 100 13.71% 197 13.71%
Company’s Board.
Healthcare insurance 57 9.00% 112 9.00%
10% of the amount of overstated VAT and other indirect taxes Personal income tax*** 7 12.00% 80 12.00%
tax shortage ü loss/ understated income + late Contribution to the PPK 2%
payment interest/incorrect
pricing in controlled transaction. As a rule, the standard VAT rate is 23%. Preferential rates 15 2.00% 29 2.00%
of 8% and 5% apply to certain goods and services. Other Net salary 551 75.56% 1,021 70.99%
Related parties 25% < Direct or indirect capital relations, goods and services (e.g., exports, intra-Community supplies
personal relations. of goods, international transport services) may be zero- * Average exchange rate announced by National Bank of Poland as of February 14 th , 2023.
Low value-added services: ** Capped at income of PLN 208,055.00 for pension and retirement contributions.
*** Taxable base = gross salary – employee’s contributions – statutory tax deductible costs.
5% mark-up. rated or exempt. Due to inflation during the period from **** Average wage in private sector as of January 2022 announced by the Main Statistical Office.
Loans: for 2023 the basic 1 February 2022 to 31 December 2022, reduced rates apply ***** Minimum wage January – June 3,490.00.
interest rate on IC loans to, e.g., fuels; heat; natural gas; some food products. Until 1. Minimum wage July – December 3,600.00.
Safe harbours ü is (depending on the loan 30 June 2023, a 0% VAT rate applies to certain food products 2. (Revenue x (-7.35%) + PLN 819.08) ÷ 0.17, for Revenue higher than PLN 8,549 and not exceeding PLN 11,141.
currency), i.a., WIBOR 3M, WIRON
3, Average SOFR, LIBOR USD as well as goods and services provided free of charge, which
3M, EURIBOR 3M, plus margin is intended to help Ukraine. Kinga Baran
up to 2.9 pp (the Borrower) and Head of Tax
minimum of 2.4 pp (the Lender). Other indirect tax types in Poland include excise duty and Mobile: +48 691 20 70 58
Level of attention paid by Tax gambling tax. Some civil acts such as contracts of sale, loan E-mail: k.baran@mazars.pl
Authority 10/10 agreements, foundation deeds of partnership or company,

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