Like many other countries, Poland imposes a corporate tax, also known as a company tax. This is the only applicable corporate income tax in the country, having a value of 19%. This tax applies on the company’s global income, calculated from all sources.
In Poland there is a difference between the taxation method concerning resident and non-resident companies. A Polish company
will have an unlimited tax liability (its entire income will be taxed) whereas a non-resident entity will only have a tax on the income it produces in Poland
(limited tax liability). A company or entity is considered a resident if it’s central management is actually located within the country.
Types of companies that must pay a corporate tax in Poland
Polish corporate taxpayers are:
• limited liability companies, joint-stock companies and other legal entities;
• corporations in formation;
• companies without legal personality having offices or management boards based in another state
• tax capital groups
In Poland, companies must pay the corporate tax income annually
and should make advance payments every month. These advance payments will be deducted from the annual tax. Small-business taxpayers (having annual sale revenues under 800,000 EUR) and newly opened businesses in Poland
can make the aforementioned payments quarterly.
Recent changes to the Polish corporate tax law
Until recently, joint-stock partnerships in Poland
(a hybrid type of partnership) were not considered corporate income taxpayers
. However, a new amendment to the Polish Corporate Income Tax (CIT) Act
changed all that starting with January 1st 2014. Despite its enforcement, this change does not affect joint-stock partnerships
that have a financial year that ending after 31 December 2013.
Initially, Polish limited partnerships
were also targeted to be included on the list of CIT payers. Nevertheless, the Polish Ministry of Finance has not made that change. This change is believed to influence the real-estate business in Poland
because the joint-stock partnership
is a form of partnership often used with this type of business