Income Taxes in Poland
Income taxes functioning in Poland include: personal income tax (supplemented by lump-sum personal income tax), corporate income tax, tonnage tax. These levies also apply to capital gains.
Polish generally applicable personal income tax imposed on income of individuals is regulated by the Act of 26 July 1991 on Personal Income Tax (further referred to as “PITA”). The Act of 20 November 1998 on Lump-Sum Personal Income Tax (further referred to as “LPITA”) applies to certain categories of income (revenues) derived by individuals: revenues from certain kinds of small-business activities and activities of some professions, revenues from rental performed outside business activities and revenues of clergymen. Income (revenue) taxed under LPITA is not aggregated with the income taxed under PITA. Besides income from international shipment activities derived by individuals and taxed with tonnage tax, falls outside the scope of personal income tax. PIT is discussed in detail under the heading “Personal income tax”.
Corporate income tax, levied on income of legal persons and entities (organizational units) without legal personality, is regulated by the Act of 15 February 1992 on Corporate Income Tax (further referred to as “CITA”). Revenues of some legal persons may be taxed with tonnage tax. CIT is discussed in detail under the heading “Corporate income tax”.
Tonnage tax is regulated by the Act of 24 August 2006 on Tonnage Tax . It is levied on income (revenues) of natural persons and legal persons from international (see)shipment services performed with the use of their own or somebody’s else commercial fleet (as well as some auxiliary activities). Taxpayers include Polish-residents and foreign entrepreneurs who carry out taxable activities in the territory of Poland. Taxation under tonnage tax is optional (it applies upon written statement of will binding for 5 years). Otherwise personal income tax or corporate income tax is imposed on income from international shipment activities. Taxable amount constitutes a product of daily stake (prescribed according to the tonnage of ships) and number of so called “utilization days” of taxpayer’s ships during a month (i.e. days when a ship was enlisted in the Polish ships’ registry). Rate applied is 19 %. Taxable period is a calendar year, but monthly tax payments must be made throughout the year. Annual tax return must be filed and final tax paid by the end of January of following tax year.
Malgorzata Sek
Foundation Centre of Tax Documentation and Studies in Lodz
