Income tax (Poland)

The income tax in Poland is of individuals collected, the revenues in Poland achieved. The legal basis is the law of July 26, 1991.

Types of income

The Polish income tax system recognizes nine different types of income:

Employment (Art. 10 Para. 1 No. 1)
Independent work (Art. 10 Para. 1 No. 2)
Commercial enterprise (Art. 10 Para. 1 No. 3)
Special areas of agriculture (Art. 10 Para. 1 No. 4)
Real estate (Art. 10 Paragraph 1 No. 5)
Renting and leasing (Art. 10 Para. 1 No. 6)
Capital assets (Art. 10 Paragraph 1 No. 7)
Speculative transactions (Art. 10 Para. 1 No. 8)
Other sources (Art. 10 Para. 1 No. 9)

In addition, there are over 100 special regulations for income that is explicitly exempt from income tax.

Tariff

The income tax rate in Poland was three-fold until 2008:

Up to PLN 44,490 , the marginal tax rate was 19%
From PLN 44,490 to PLN 85,528 it was PLN 7,866.25 + 30% of the amount exceeding PLN 44,490.
From PLN 85,528 it was PLN 20,177.65 + 40% of the amount exceeding 85,528.

With an income of 48 thousand PLN is paid consequently 8,919.25 PLN, for it was (minus a deduction as from 586.85 PLN) .:

${\ displaystyle 44490 \ cdot 0 {,} 19+ (48000-44490) \ cdot 0 {,} 3-586 {,} 85 = 8919 {,} 25}$

The following tariff has been in effect since 2009

up to PLN 85,528 the marginal tax rate is 18%
From PLN 85,528 it is PLN 14,839 + 32% of the amount exceeding PLN 85,528.

A deduction of PLN 556 must be deducted from the calculated tax amount .

Our example person with an income of 48,000 PLN would only have to pay 8,084 PLN in income tax in 2009. It applies

${\ displaystyle 48000 \ cdot 0 {,} 18-556 = 8084}$

Calculation of the individual tax amount

The taxable income (zvE) is initially assigned to a tariff zone. The tax amount (StB) can then be calculated using the corresponding formula. The deduction amount is taken into account.

From January 1st, 2009 the following formulas apply:

First level: zvE from PLN 0 to PLN 85,528

${\ displaystyle StB = \ mathrm {zvE} \ cdot 0 {,} 18-556}$

0.18 is the marginal tax rate applicable in the first stage (18%). The number 556 is the tax deduction that will be deducted from the tax amount.

Second level: zvE from PLN 85,529

${\ displaystyle StB = (\ mathrm {zvE} -85528) \ cdot 0 {,} 32 + 85528 \ cdot 0 {,} 18-556}$

0.32 is the marginal tax rate applicable in the second stage (32%).

The formula is simplified if you summarize the constants:

${\ displaystyle StB = (\ mathrm {zvE} -85528) \ cdot 0 {,} 32 + 14839}$

Linear tax on capital income

Capital income already charged with corporation tax (i.e. in particular dividends ) is also taxed at a flat rate of 19% within the framework of a shareholder relief system. There is an effective load of a maximum of 34.39%.

Web links

Country profile Poland with an overview of Polish tax law (PDF file; 334 kB)
Guide for entrepreneurs (PDF file)
Selected legal regulations in Poland after May 1, 2004 (PDF file)

Individual evidence

↑ The most important taxes in an international comparison 2015, page 25f, overview 6

[BMF_D-1] The most important taxes in an international comparison 2015, page 25f, overview 6