Taxes for companies and individual entrepreneurs in Poland
CIT - Corporate Income Tax.
CIT - Income tax paid by companies (e.g. Sp.z o.o.).
The CIT rate is 9% or
19%, depending on the company's turnover.
Application of CIT rates:
- 9% is the rate for micro-enterprises, companies with a turnover of up to €2,000,000 per year;
- 19% for larger companies, with a turnover of more than EUR 2,000,000 per year.
PIT - Personal Income Tax.
PIT paid by entrepreneurs has 3 types:
- PIT-28 - RYCZAŁT (simplified taxation system) - the tax rate depends on the type of
their activity, e.g. if it is sales they pay 3%, construction - 5.5%, IT services - 8.5
to 12%, etc.
But in this system of taxation, it is not possible to take anything as an expense, i.e. one pays tax on the total turnover (receipts). - PIT-36L - PODATEK LINIOWY - 19% fixed tax rate on profits, there is a possibility to take costs, tax is paid not on the whole turnover, but on profits.
- PIT-36 - SKAŁA PODATKOWA - in this system the tax depends on the profit: amount up to PLN 30,000 per year - taxed at 0%, from PLN 30,000 to PLN 120,000 - 12%, from PLN 120,000 - 32%.
VAT - Value Added Tax.
Polish law does not oblige companies to register as VAT taxpayers in Poland (except for consultancy services) if your annual sales do not exceed PLN 200,000 (your revenue, not your profit!).
However, this status is rather a requirement of today's reality, as most contractors want to work with VAT payers.
IMPORTANT: If your revenue from Polish customers exceeds PLN 200,000, you are required to register as a VAT payer.
In Poland, the standard VAT rate is 23%, but there are also reduced VAT rates for certain goods and services, such as food, books and medicines. Reduced VAT rates in Poland can be 8%, 5% or 0%.
NOTE: If you intend to apply 0% VAT, even if the rate is 0, you MUST register with the tax office and register as an EU VAT payer!
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