Other taxes
Last reviewed 21 Aug 2023
Business tax
General types of business taxes are: (a) income taxes, corporate - CIT or personal - PIT, depending on the status of taxpayer carrying out business activity and (b) VAT.
Tax responsibilities apply as well with regard to withholding taxation or employment taxes settled on behalf of employees.
Other business taxes may apply as well, depending on specific business activity areas / products involved, in particular: (a) excise, (b) retail sales tax, (c) mineral extraction tax, (d) tax on certain financial institutions, (e) sugar levy - on beverages containing sugar, caffeine or taurine.
Wealth tax
Levied on physical persons (PIT taxpayers): 4% from surplus over PLN 1 million of anual income
Inheritance and gift tax
Tax-free amounts and tax rates depend on affiliation of a purchaser to a given tax group in relation to donor / testator.
Tax exempted are generally purchases by nearest relatives, regardless of the amount, provided that notification is made to the tax office within 6 months. In the case of cash donations, necessary payment into a bank account for exemption. Failure to report donation may result in 20% penalties from fair market value of donation.
Obtained residential buildings or premises may be tax-free under certain conditions (quite strict).
Property transfer tax
Either VAT or tax on civil law transactions (TCLT).
Preferential 8% VAT rate applies to sale of certain residential estates. VAT exemptions may generally apply to sale of buildings or parts thereof in certain circumstances.
If sale of real estate is VAT-free (non-VATable or exempted) - purchaser is obliged to pay 2% TCLT from its market value.
Certain concessions possible in specific cases.
1% TCLT rate may potentially apply to purchase of shares in real estate company.
Capital duties and fees
Contract duties
Sales or exchange agreements, loan agreements are subject to TCLT, where non-VATable (i.e. where transaction is concluded not in course of business activity).
Sale of real estates or shares in companies is subject to TCLT, always where transaction is VAT-free, i.e. either non-VATable or VAT exempted (i.e. concluded in course of business, however subject to VAT preference for some reason).
In case of sales / exchange agreement, TCLT tax rate is basically: (a) 2% - where subject of agreement is movable or immovable property or related property rights, (b) 1% - where subject are other property rights (e.g. shares).
Tax assesment basis relates to market value of item/s. TCLT taxpayer is purchaser.
In case of loans, TCLT tax rate is 0.5% of the amount of loan. TCLT taxpayer is borrower. Failure to report loan may result in penalties of up to 20% of its value.
Possible exemptions from TCLT in specific cases, for example with regard to loans granted to company by its shareholder, loans granted by nearest relatives, loans or sale of movable property worth up to PLN 1.000.
Registration fees
Entries into the Land and Mortgage Register: fixed fee PLN 200.
Capital duty
Subject to TCLT are: (a) conclusion of articles of association of company, resident or managed in Poland or entering into partnership agreement, partnership being Polish resident as well as (b) amendments thereof in certain circumstances.
Amendements of AoA or partnership agreement are subject to TCLT taxation basically where they lead to (a) increase of share capital of company / partnership's assets (incl. loans granted to partnership by its shareholders) or shareholders' additional contributions to capital of company / partnership (pol. 'dopłaty') as well as (b) shifting residency or management centre of the corporation from non-EU country to Poland.
Non-taxable are conclusions of AoA or amendments thereof resulting from restructuring of corporations. Additional tax exemptions possible in certain circumstances.
TCLT rate is 0.5% from value of contributions / share capital or their increase, respectively.
