Choosing Taxation for Business
When opening a business in Poland, the owner faces the question of taxation. In any country, tax payment is a significant expense that needs to be considered when choosing a direction of activity if you want to generate income and avoid penalties for late or incorrect tax payments.
We have prepared a list of taxes paid by Polish companies depending on their activities.
- CIT - a tax that depends on the company's profit. It is calculated after deducting all expenses related to current activities: accounting, office space rent, purchase of office equipment, tickets, etc. If turnover is less than 2 million euros per year, the tax is 9% of profit. If turnover does not exceed 1.2 million euros - 15%.
- VAT - value-added tax. The basic rate is 23% in case of an annual turnover of 150 thousand zlotys. For some types of services and goods, rates from 0 to 8% are provided. For example, 5% - production of bakery products, meat and dairy products, books, and periodicals. Pharmaceutical and medical companies, companies in the passenger transport sector, companies providing temporary accommodation or residence services, construction companies, and others pay 8%.
- Zero VAT rate applies to the purchase and delivery of goods from EU countries to Poland.
- The amount of overpaid VAT can be refunded from the budget. Zero VAT rate applies to the purchase and delivery of goods from EU countries to Poland.
- PIT - income tax for individuals is 18% if income is up to 19,834 euros, and 32% - above this amount.
- Social security contributions - 19.52%, disability insurance - 8%, medical insurance - 2.45%.
- In case of real estate sale, 19% tax must be paid.
Conclusion
To optimize taxation, you can choose a tax lawyer on our marketplace "Consultant". We will help you understand Polish tax legislation and select the best option for your business. Also, on our website, you can choose an outsourced accountant for your company.
