Monday 4 August 2008

How to tax your income in Poland

Taxes in Poland

Taxes in Poland are currently going through significant changes but lets look on current situation:

Commercial profits
Since 2004, there is one rate for taxation of company incomes, which is currently 19 %.
This tax rate is not applied for following:
- incomes from agriculture
- incomes from forestry business

For taxation is crucial place of business or seat of board of directors. In case that the mentioned seats are in Poland, all incomes must be taxed in Poland.

In case of tax losses, they can be transferred for maximum 5 years (but in current year can be deducted only 50 % of tax losses).


Value added tax
There are two basic rates of Value added taxes. The basic is 22 % and the second one is 7 % (for sale of agriculture products, some food, books, etc.).

Dividend incomes
Dividend income is taxed by 19 %.

Personal income taxation
Personal incomes are taxed based on progressive tax rates but in case of indenpendent enterpreneur, you can choose tax rate of 19 %.

Investment information
Poland has strong and volatile stock exchange, called Gielda papierow wartosciowych (see www.gpw.pl). Blue chips are represented by companies as PKN Orlen, TPS, PEO, etc.
The main index is represented by WIG 20 which is represented by 20 most liquid and biggest companies traded in Stock Exchange in Poland.

No comments: