Corporate taxes

摘要

Poland's tax system has been subject to frequent modification and amendments to align it with EU directives and legislation. Amendments in 2001 simplified the taxation process, making it more transparent. A new value-added tax (VAT) law came into force when Poland entered the EU in 2004. Companies pay high taxes on property and certain capital goods, and employer contributions to employee social security are burdensome. However, the standard 19％ corporate tax rate remains low by EU standards.A number of recent corporate tax reforms will affect some businesses operating in Poland. In 2016 the government launched a new tax on financial institutions, with various rates applying according to the value of assets. A retail sales tax took effect on January 1st 2021, applying on monthly income exceeding Zl17m; rates of 0.8％ and 1.4％ respectively apply on monthly income up to and above Zl170m. From 2019, a reduced tax rate of 9％ applies to Poland's smallest enterprises.Amendments to the corporate tax law came into force in 2018. Key changes include new "thin-capitalisation" rules, non-deductibility of most royalties and service fees, the introduction of income baskets, a minimum levy on certain commercial real estate and new rules for controlled foreign companies.