Polish Tax Guide for Foreigners: VAT & CIT Simplified

Polish Tax Guide for Foreigners: VAT & CIT Simplified

Poland's tax system can seem complex to foreign investors. However, with the right optimization, it is one of the most business-friendly environments in the EU. Here is a breakdown of the key taxes you need to know: CIT and VAT.

Corporate Income Tax (CIT)

The standard CIT rate in Poland is 19%. However, for small taxpayers (companies with revenue under €2 million), Poland offers a preferential 9% CIT rate. This is a massive advantage for startups and new businesses established by foreigners.

Value Added Tax (VAT)

The standard VAT rate is 23%. Registering for VAT is mandatory if your annual turnover exceeds 200,000 PLN, but it is often beneficial to register voluntarily earlier, especially if you incur business expenses that allow for VAT deductions.

ZUS (Social Security)

If you employ staff (or yourself), you must contribute to ZUS. This covers health insurance, pension, and other benefits. Proper payroll management is essential to ensure these calculations are accurate and paid on time.

Professional Accounting with King Eagle

Compliance is key to longevity. King Eagle provides comprehensive accounting services, from monthly bookkeeping to annual financial statements, ensuring your business remains profitable and legally compliant.