Corporate taxes

摘要

Poland's tax system has been subject to frequent modification and amendments to align it with EU directives and legislation. Amendments in 2001 simplified the taxation process, making it more transparent. A new value-added tax (VAT) law came into force when Poland entered the EU in 2004. Companies pay high taxes on property and certain capital goods, and employer contributions to employee social security are burdensome. However, the standard 19 corporate tax rate remains low by EU standards. On January 1st 2022 a new set of tax measures came into effect, applying to both corporate and personal taxpayers. Known as the "Polish Deal" (Polski Lad), the new measures make changes to multiple aspects of income and social-security tax treatment in the country. The most straightforward changes relate to personal income tax (see Personal taxes); changes to corporate tax are numerous and more abstract, and mainly relate to tax relief for investment in innovation. For example, henceforward certain investors will be able to apply increased deductions from their tax base with regard to expenses incurred for research and development (RD) and other intellectual-property-related activities. Taxpayers classed as RD centres will be able to deduct 200 of eligible RD costs (instead of 150 previously). Other related relief measures apply to expenses incurred for robotisation, business expansion and consolidation, and issuance of an initial public offering on a regulated exchange. One exceptional change in the Polish Deal not related to tax relief is a new minimum tax of 0.4 on annual revenue plus 10 of the base on some categories of excess spending. The new tax affects only some of Poland's largest corporations: those reporting either a net loss, or income amounting to less than 1 of revenue.