For foreign entrepreneurs who have decided to do business in Poland, it is important to understand the specifics of taxation. In this review, we will examine the key aspects of the tax system in Poland that affect foreign entrepreneurs.
Foreign entrepreneurs supplying goods or services in Poland are required to register for VAT. The VAT rate may vary depending on the type of goods or services, but it is usually 23%. Entrepreneurs may also choose a simplified taxation system if their turnover does not exceed a certain amount.
Foreign companies with a permanent establishment or branch in Poland are required to pay corporate tax. The corporate tax rate is usually 19%, but it may be changed depending on amendments to tax legislation. Various benefits and deductions may be applied to reduce the tax burden.
Foreign entrepreneurs residing or having sources of income in Poland are also subject to taxation based on their income. Tax rates may vary depending on the type of income, such as employment, provision of services, or rental income. However, there is also a double taxation system that allows avoiding double taxation in the presence of double taxation agreements between Poland and other countries.
Key aspects of taxation for foreign entrepreneurs:
Taxpayer registration: Foreign entrepreneurs conducting business in Poland must register with the tax authorities.
Consultation with experts: It is recommended to consult tax advisors or lawyers specializing in Polish tax law to properly organize taxation.
Use of tax treaties: Poland has a number of double taxation avoidance agreements with other countries, which can help reduce the tax burden.
For successful business in Poland, foreign entrepreneurs need to have a good understanding of the tax system and consider all tax obligations. Professional assistance and planning can help avoid unpleasant surprises and effectively manage taxation.
The Polish tax system can be complex for foreign entrepreneurs, so it is important to study it carefully and consult with experts to ensure compliance with all tax requirements and successfully conduct business.
