Taxes in Europe Database v2
Act of 15 February 1992 on legal persons' income tax (Consolidated text: Journal of Laws of 2011, No. 74, item 397 with subsequent amendments).
22.86% of the revenues from CIT is a share of the local authorities.
Territory of Poland.
Revenues derived from all sources.
However, certain types of income are not subject to income tax. These include income from agricultural activities, which is generally understood as production of unprocessed plant and animal products on a farm, income from forestry, revenues (income) from ship-owner activity falling under provisions of tonnage tax, income resulting from activities which cannot be the subject of legally effective contract. However, income from special branches of agriculture (including breeding of certain animals and mushroom cultivation) is subject to income tax.
Furthermore, the CIT act exempts certain types of income from income tax. These include, i.e.:
Taxpayers who have their seat or management office within the territory of Poland shall be liable to pay tax on the entirety of their income regardless of where they have been generated.
Taxpayers who have not their seat or management office within the territory of Poland shall be liable to pay tax only on income generated in the territory of Poland.
Average depreciation rate
1.50 – 10.00 %
The declining balance method is in certain circumstances applicable.
4.50 – 20.00 %
Thin capitalization rule.
Losses may be carried forward to the following five tax years to offset profits from all sources that are derived in those years. Up to 50% of the original loss may offset profits in any of the five tax years.
Tax exempted are:
The withholding tax rate for outgoing dividends is from 0% to 15% and for outgoing interest payment from 0% to 20%.
There are no specific rules concerning repatriated profits
As far as loss carry-forward is concerned, size limit of 50% is for one tax year.
There are no specific rules concerning repatriated profits.
In case of CFC rules we do not apply thresholds for capital or voting power and other requirements applied to treaty countries.
The tax is to be paid in monthly (for all companies) or quarterly (for small enterprises and start-ups) advance payments. The tax return is submitted by the end of the third month following the tax year.
Due tax is to be paid to the competent tax authority (local tax office).
Tax exemptions are granted for certain activities carrying on in the Special Economic Zones.
Since 1.1.2015 taxpayers has the right to choose between two option for TC. First option is based on revised current method, and the second is a new, alternative method.
The old one method - Debt-to equity limit for deductibility of interest on the loans from qualified entities is generally to be set a 1:1 level (before 3:1), ‘equity’ will include share capital but also reserve capital, retained profits, etc.
Alternative method will affect tax deductibility of interest on loans from related and unrelated entities. The method sets an interest deductibility limit in reference to two indicators: