At the beginning of a new calendar year, many foreigners in Poland face an important issue — the preparation and submission of their tax declaration. This is not just a legal obligation but a key step towards building a solid legal position in the country of residence.
In Poland, paying taxes is not only a legal requirement, but also an indicator of your “positive reputation” as a resident. Financial transparency and fulfilling tax obligations form a strong foundation for further legalization processes — from temporary stay to residence card, permanent residence permit, and, ultimately, Polish citizenship.
This issue is particularly pressing for Ukrainian citizens who have arrived in large numbers since 2022. Many have already integrated into the labor market and started their own businesses, but do not fully understand the tax obligations that come with it. In an environment of increased attention to legalization, proper tax compliance becomes a top priority.
It is crucial to understand: having legal capacity in Poland automatically entails not only rights but also responsibilities. Among them, tax discipline holds a special place, reflecting the level of maturity and responsibility as a citizen or resident.
In this article, we analyze the key aspects of the Polish tax system to help you better understand the nuances of the legislation and avoid common mistakes when submitting your tax return. We will cover in detail:
Let’s begin with a general overview of taxation.
Let’s carefully examine the main aspects of taxation, starting with two fundamental concepts: the object (base) and the subject of taxation. The essence lies in who pays (subject) and from which income (object).
According to these criteria, taxes are conventionally divided into two categories: income taxes and profit taxes in Poland. There are also separate categories such as value-added tax (VAT) and excise duties.
In the context of Poland, as in many countries, the tax base is linked to two key indicators:
However, to understand how foreigners should pay taxes in Poland, it is necessary to take a closer look at the first two groups of taxes.
The next important aspect is the tax subject. A foreigner, including a citizen of Ukraine who arrived in Poland, is initially considered a non-resident. But there is one “but”: if their stay in the country exceeds 183 days within a year, the local tax office grants them the status of a Polish tax resident. This becomes the basis for reporting income and paying taxes.
A foreigner who is a resident in Poland may receive income:
This criterion determines the difference between the “salary tax in Poland” and the “income tax in Poland.”
In Poland, personal income tax is known as PIT (Personal Income Tax).
It is mandatory for those who earn income within Poland:
PIT declarations must be submitted to the tax office by April 30 each year.
The employer pays the tax on the salary.
The employer submits income and withholding data in the annual PIT-11 declaration to both the tax office and the employee.
Based on the PIT-11, the employee fills in their own PIT-37 declaration and submits it to the tax office.
Every natural person in Poland who earns income is required to file an annual tax declaration.
Spouses in Poland may jointly declare their income and pay PIT, which allows them to reduce their tax burden.
This is a rational choice for families where only one spouse works.
Income tax in Poland depends on the amount of income: there is a tax scale and a flat tax.
A fixed tax is levied on the total amount of income without taking expenses into account (lump-sum tax).
A fixed rate, levied on the entire amount of income related to individual business activity.
Different rates apply to different types of activity (from 2% to 17%).
Ukrainian individual entrepreneurs (FOPs) who stay in Poland for more than 183 days are obligated to pay income tax to the Polish budget.
In case tax has already been paid to the Ukrainian budget, thanks to a bilateral agreement, it is possible to avoid double taxation.
Tax rates and rules may change, so it is recommended to seek timely advice from the tax office.
Here is the 1:1 English translation of your text, without any omissions or abbreviations:
CIT (corporate income tax) is a tax on the income of legal entities, which is levied at the rate of 19% of the profit.
Polish tax legislation provides the possibility of including in company expenses various costs directly or indirectly related to its activities. These may include expenses for the purchase of goods, office supplies, equipment, fuel, advertising, accommodation during business trips, insurance, etc.
The inclusion of these expenses allows for a significant reduction of the taxable base and an improvement of the company’s financial condition.
Expenses must be documented, and the invoice for the expenses must be issued to the company.
The expenses must correspond to the list established by the Income Tax Act.
The CIT declaration must be submitted to the tax office annually.
At ONE PLUS, professional legal support is provided for businesses, including the submission of tax declarations, registration of cash registers, and other matters related to documentation for foreigners in Poland.
The lawyers at ONE PLUS will assist in resolving issues related to business registration, preparation of declarations, and compliance with tax requirements.
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