Moving to Poland involves familiarising yourself with the local tax system. Below you will find a detailed guide to tax obligations, tax filing and the tax reliefs and exemptions available to foreigners.

Which are the tax obligations?

Tax residency:

  • Individuals who reside in Poland for more than 183 days in a tax year or have a centre of life and economic interest here are considered tax residents and must settle with the Polish tax office on all their income, both domestic and foreign.
  • Non-residents only account for income earned on Polish territory.

Personal Income Tax (PIT):

  • There are two tax rates in Poland: 12% for income up to PLN 120,000 per year and 32% for income above this amount.
  • Employers make advance payments of income tax on employees’ wages on an ongoing basis.

Business tax:

  • Self-employed persons pay income tax on a general basis, a flat rate (19%) or a lump sum on registered income, depending on the form of taxation chosen.

How to file a tax return?

Tax forms:

  • The most commonly used forms are PIT-37 (for employees) and PIT-36 (for self-employed persons).
  • The forms are available on the website of the Ministry of Finance and at tax offices.

Tax return deadlines:

  • Tax returns for the year must be submitted by 30 April of the following year.
  • They can be submitted in person at the tax office, by post or electronically via the e-Deklaracje system.

Procedure for making a statement:

  • Fill in the appropriate tax form, providing all the necessary information on income, allowances and deductions.
  • Submit the form to the tax office or send it electronically. Once you have submitted your return, you may receive a refund of the overpaid tax or you will have to pay the missing amount.

Tax exemptions and reductions available to foreigners

Tax benefits:

  • Family Tax Credit: The possibility of deducting an amount from tax for each child if certain conditions are met.
  • Internet allowance: Ability to deduct expenses incurred for internet use up to a certain amount.
  • Rehabilitation allowance: Deductions for persons with disabilities or maintaining persons with disabilities, related to rehabilitation expenses and medical equipment.

Tax exemptions:

  • Double taxation treaties: Poland has agreements with a number of countries that regulate the taxation of income earned in different countries, thus avoiding double taxation.
  • Foreign income: In some cases, if you are tax resident in Poland, income earned abroad may be exempt from taxation in Poland under international agreements.

Other concessions:

  • Deduction of health and social security contributions: Social security contributions paid by an employee or self-employed person can be deducted from income.
  • Donations: Deductibility of donations made for public, charitable and religious purposes up to a certain limit.

Understanding tax obligations and filing deadlines is crucial for any Expat living in Poland. The tax system offers various reliefs and exemptions that can help reduce tax dues. It is important to regularly check the current legislation and use the tools and resources available, such as tax advisors, to ensure that everything is completed correctly and in accordance with the current legislation.

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