MOF Income Tax Brackets in Poland for 2024

Poland was ranked third preferred location in Europe for foreign investments, according to the Polish Investment and Trade Agency. With a strong business-friendly focus and investor-friendly public policies, Poland continues to attract many leading companies.

The tax system in Poland is administered by the official tax body, the Ministry of Finance. The Income Tax Law provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with Polish tax laws.

Here, you will learn more about how to calculate income tax and other tax rates:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Poland

Personal Income Tax (PIT) Brackets for Individuals in Poland for 2024

The basic tax rates applicable are tabulated below. However, there are two other tax rates to be aware of: a uniform tax and a lump-sum tax on registered revenues (addressed in more detail below). 

Personal Income Tax (PIT) Brackets for Resident Individuals

Individuals earning income exceeding PLN$ 1 million are subject to a 4% solidarity tax on the excess of this amount.

Uniform Tax Rate

A uniform tax rate of 19% may be applied if you earn income from non-agricultural economic activities or from special branches of agricultural production. Other revenue or income that may fall under this category include income from the sale of securities, the sale of real estate, and revenue from wins in competitions and games. If you choose to be taxed in this manner, you must submit a written declaration to the revenue office.

Lump-sum Tax on Registered Revenues

The applicable rate of lump-sum tax, which ranges from 3% to 17%, will depend on the type of economic activity carried out. Revenue from rental of real estate or from agricultural retail trade may be included here, subject to certain conditions.

Similar to uniform tax rules, if you choose to be taxed in this manner, you are required to submit a written declaration to the revenue office. For more information, see the Ministry of Finance’s guidance specific to employees, the self-employed, and workers posted from other EU countries.

Personal Income Tax (PIT) Brackets for Non-Resident Individuals

Specified types of income earned by non-residents are subject to special treatment: they are taxed at a flat rate of 20% which is calculated on revenue unless a double taxation treaty (DTT) applies. 

These earnings can include but are not limited to:

• revenue from copyrights and other intellectual property (IP) such as trademark and patents
• income from transfer of technology
• income from work commissioned by national or local authorities

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Poland for 2024

In Poland, there are two rates of corporate income tax (CIT): a standard CIT and a reduced CIT. 

The reduced corporate tax rate applies to income other than capital gains in the following situations:

• a small taxpayer (whose sales revenue including VAT due) does not exceed an amount corresponding to the PLN equivalent of EUR$ 2 million in the previous fiscal year or
• an entity that has started operations and is in their first tax year (provided their operation is not the result of a transformation or merger in that first year)

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Poland

The application of Capital Gains Tax (CGT) in Poland is summarized below.

Withholding Tax Rates for Residents and Non-Residents in Poland

In general, withholding tax (WHT) is levied in Poland on residents and non-residents. WHT rates may vary depending on the source of income, whether that is dividends, interest or royalties. 

A pay and refund mechanism is in place whereby a taxpayer has the right to claim a WHT refund. However, there are circumstances in which certain payments do not fall within the scope of this mechanism. Examples include payments for intangible services and interest paid to unrelated parties.

Poland is signatory to several double taxation treaties (DTTs) which may vary WHT rates. A taxpayer may benefit from the provisions of such agreements.

Value-Added Tax Rates in Poland

Value-Added Tax (VAT) rates in Poland with application examples are tabulated below.