Poland: Domestic Taxation
The standard rate of corporation tax is 19%. Capital gains, including those derived from the sale of publicly traded shares and government bonds, are treated as part of a company's profits and are taxed accordingly.
A reduced corporation tax rate of 9% is available to certain small businesses whose income does not exceed €1.2 million per annum. The lower rate does not apply to income from capital gains, nor is it applicable to tax capital groups.
Advance payments of corporation tax are payable by the 20th day of the following month, although the rules differ with regard to the last monthly advance payment, which should be made with the preceding month's payment. Annual returns must be submitted within three months after the end of the tax year, and the balance of any corporate tax liability is also payable at this point.
VAT is levied on supplies of goods and services within Poland and on exports and imports from within and outside the EU. The standard VAT rate has remained at 23%since January 2011. In April 2020, the reduced VAT rates, formerly at 8% and 5%, were changed to 7% and 5%. Additionally, some goods and services had their VAT rates changed at this time as follows.
|23%||Seafood (up from 8%)|
|Ice used for food (up from 8%)|
|7%||Spices (processed, down from 23% and unprocessed, up from 5%)|
|5%||Bread, cakes and pastries (all products, previously at various higher rates)|
|Tropical and citrus fruits and some nuts (down from 8%)|
|Soup and dietary products (down from 8%)|
|Baby food, dummies, nappies and car seats (down from 8%)|
There are also various exemptions, including for some transactions relating to land and construction, second hand goods, and certain financial and educational supplies. VAT returns are generally filed either monthly or quarterly.
Excise duties are imposed at different rates on the sale, production and importation of various goods, as outlined in the Excise Duty Law (which include cars, tobacco products, alcohol, electric power, and fuel).
Additional taxes faced by corporations in Poland include the tax on civil law transactions, which is imposed on certain contracts. There are also local property taxes in place.