Poland has a comprehensive tax system that includes different types of corporate taxation, such as corporate income tax, value-added tax, excise tax, customs duties, and real estate tax. Each type of tax is governed by specific legislation, and tax rates vary depending on the type of tax and the nature of the transaction.
Corporate Income Tax (CIT):
Corporate income tax is a tax on the income of legal entities. In Poland, the CIT rate is 19% for all businesses, regardless of their size or revenue. The basis for calculating the CIT is the taxpayer's revenue less deductible costs, including depreciation and amortization. The CIT Act of 15 February 1992 (consolidated text: Journal of Laws 2019, item 1084, as amended) governs the CIT in Poland.
Excise tax is a tax on specific goods, such as alcohol, tobacco, and energy products. In Poland, the excise tax rates vary depending on the type of product and are based on their quantity or value. The Excise Duty Act of 6 December 2008 (consolidated text: Journal of Laws 2021, item 327, as amended) governs the excise tax in Poland.
Customs duties are taxes on goods imported into Poland from non-EU countries. The rates of customs duties depend on the type of goods, their origin, and their value. The Common Customs Tariff (CCT) of the European Union governs the customs duties in Poland.
There are no export duties in Poland.
In addition to these taxes, Poland also levies a real estate tax, which is a local tax on the value of real estate properties. The real estate tax rates vary depending on the location and type of property. The Act on Local Taxes and Fees of 12 January 1991 (consolidated text: Journal of Laws 2021, item 1245, as amended) governs the real estate tax in Poland.
Regarding tax brackets, Poland uses a flat tax rate for corporate income tax, meaning that all businesses pay the same 19% tax rate, regardless of their size or revenue. However, for individual income tax, there are progressive tax brackets based on the level of income, with rates ranging from 17% to 32%.