Poland

Key facts Poland taxation

Economy in Poland is rather flourishing, especially due to its private business sector. The Polish government encourages foreign investments in Poland by signing Double Tax Treaties with a large number of countries and by offering a wide range of incentives for entrepreneurs who decide to come from abroad and start a company in Poland.

When it comes to attractiveness, Poland is the eighth country in a top of preferences of foreign investors. The main industries in Poland are auto, coal mining, chemicals, shipbuilding, food processing, beverages and textiles. It is estimated that 36% of the foreign capital is invested in manufacturing. The other main sectors that attract capital to Poland are financial services, transports, logistics and data transfer. Polish agriculture is an area that begins to represent an increasingly more attractive investment opportunity. Also, due to the high growth of Polish economy in recent years, the real-estate market is another area that cought the investors' attention.

Polish SP.z.o.o (Limited Liability Company):

  • minimum share capital of 5.000 PLN, divided into non-transferable shares
  • at least one shareholder
  • at least one director
  • registered office is required
  • liability of the shareholders is limited by their contribution to the capital
  • yearly submission of audited financial statements is required

Polish S.A. (Spolkaakcyjna - Joint-Stock Company):

  • minimum share capital of at least 100.000 PLN, at least 25% must be paid upfront
  • at least one shareholder of any nationality
  • at least one director of any nationality
  • management board and supervisory board are required
  • liability of the shareholders is limited by the contribution to the capital

Taxation:

  • VAT rate is 23%, but reduced rates of 8% and 5% apply to certain products
  • corporate tax rate is 19%, a lower rate of 15% is applicable subject to Government approval for small companies and companies just commencing operations
  • dividends are subject to a withholding tax of 19%
  • interests and royalties are subject to a withholding tax rate of 20%, unless double tax treaties apply