There are numerous types of taxation in Poland like everywhere in the world. Some of them are very essential in many aspects for taxpayers doing business in Poland such as CIT (Corporate Income Tax) and PIT (Personal Income Tax).
CIT (Corporate Income Tax)
Corporate income tax is the income tax paid by legal entities based on their profits arising in a corporation tax accounting period. Capital companies, limited partnerships and limited joint-stock partnerships can be considered legal entities. When it comes to rates, it is taxed at different rates. While standart rate is %19, the rate for small taxpayers is %9. In Poland, taxpayers whose revenues earned in a tax year did not exceed an amount of PLN equal to 2 million EUR are considered “small taxpayers”.
PIT (Personal Income Tax)
Polish tax residents are subject to personal income tax (known as PIT) based on their worldwide income.
Tax rates are as below:
- 0 PLN – 120,000 PLN: 12% minus tax reducing amount (3,600 PLN, 300 PLN every month)
- Over 120,000 PLN : 10,800 PLN + 32% of the surplus over 120,000 PLN
- Tax-free amount in 2023 will remain at the level of 30,000 PLN / year.
Reporting Obligation
Scope of the mentioned reports includes accounting books, tax revenue and expense ledger, revenue records, records/lists of tangible and intangible assets (simplified tax records). It should be noted that reports must be submitted to the tax authority monthly and currently taxpayers could only send their reports (as a PDF) in a manual way. This process will be digitized.
As SNI, we would like to inform you that the new obligations of electronically keeping tax records and sending JPK_CIT or JPK_PIT are to be implemented for the first time for the tax year starting after:
1) 31 December 2023 – in the case of:
- tax capital groups,
- CIT taxpayers whose revenue in the previous tax year exceeded EUR 50 million;
2) 31 December 2024 – in the case of CIT taxpayers (other than those listed in point1) obliged to send JPK_VAT records and PIT taxpayers obliged to send JPK_VAT records;
3) 31 December 2025 – in the case of other PIT and CIT taxpayers.
