Types of Tax for Limited Companies in Poland

When operating a limited company in Poland, it is essential to understand the various types of taxes that you will be required to pay. Proper tax management is crucial for the financial success and compliance of your business. In this article, we will discuss the different types of taxes applicable to limited companies in Poland.

1. Corporate Income Tax (CIT)

Corporate Income Tax, commonly known as CIT, is a tax levied on the profits earned by limited companies in Poland. The standard CIT rate is 19%, but a reduced rate of 9% applies to small taxpayers meeting specific criteria. CIT is calculated based on the company's annual financial statements, and the tax return must be submitted by the end of the third month following the end of the tax year.

2. Value Added Tax (VAT)

Value Added Tax, or VAT, is a consumption tax imposed on the sale of goods and services. In Poland, the standard VAT rate is 23%, with reduced rates of 8% and 5% applicable to certain goods and services. Limited companies are generally required to register for VAT if their annual turnover exceeds a specified threshold. VAT returns must be filed monthly or quarterly, depending on the company's turnover.

3. Personal Income Tax (PIT)

Personal Income Tax, or PIT, is a tax levied on the income of individuals, including company owners who receive dividends or salaries. Limited companies are responsible for withholding and remitting PIT on behalf of their employees. The PIT rates in Poland range from 17% to 32%, depending on the individual's income level.

4. Social Security Contributions

As an employer, limited companies in Poland are obligated to make social security contributions on behalf of their employees. These contributions fund the country's social security system, including health insurance, retirement pensions, and disability benefits. The rates for social security contributions vary depending on the employee's income and the type of insurance coverage.

5. Real Estate Tax

Real Estate Tax is imposed on the ownership of real property, including land, buildings, and structures. Limited companies that own real estate in Poland are subject to this tax, which is calculated based on the property's value and local tax rates determined by the municipality.

6. Excise Duties

Excise duties are specific taxes imposed on certain goods, such as alcohol, tobacco, fuel, and energy products. Limited companies engaged in the production, import, or sale of these goods are responsible for paying excise duties to the Polish authorities.

These are the main types of taxes that limited companies in Poland need to consider. It is important to consult with a tax advisor or accountant to ensure compliance with the tax regulations and to optimize your tax planning strategies.

Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as professional tax advice. It is recommended to consult with a qualified tax professional for personalized guidance based on your specific circumstances.