Tax Requirements

A corporation of limited joint stock partnership is tax resident in Poland if its registered seat or management is in Poland. Residents are taxed on worldwide income while non-Polish resident firms are taxed only on Polish-sourced income.

The Polish Corporate Tax Rate is 19% (with a lower rate of 15% for small businesses). There is a Capital Gains Tax of 19%, and losses may be carried forward for five years and deducted from taxable income. However, no more than 50% of the total loss incurred can be deducted in a given year. There is also a withholding tax of 19% on dividends and 20% on interest, but dividends received by a Polish resident company from another company in the EU/EEA or Switzerland are exempt from tax depending on some requirements. Note that a tax deduction ranging from 100% to 150% of qualifying expenses incurred for R&D activities may be available. A one-time depreciation write- off up to EUR 50,000 also may be available for small and start-up taxpayers. (Source 1, Source 2).

Audit Requirements

“According to the applicable regulations (Article 64(1) of the Accounting Act), the following entities are obliged to have their financial statements audited:

• banks, insurers and insurance companies, co-operative savings and credit banks;
• entities which operate on the basis of regulations on trading in securities and regulations on investment funds, and entities which operate on the basis of regulations on the organisation and operations of pension funds;
• joint-stock companies, except for companies in organisation as at the balance sheet date;
• all other entities which in the prior financial year for which the financial statements were prepared, met at least two of the following conditions:
  • the annual average number of employees in full-time equivalents amounted to at least 50;
  • the total assets as at the end of the financial year were at least the Polish zloty equivalent of EUR 2,500,000;
  • the net revenue from the sales of merchandise and finished goods and the financial transactions for the financial year was at least the Polish zloty equivalent of EUR 5,000,000” (Source). Other organizations may also choose to opt-in to conducting audits of their business.

    Sources:

• Corporate Income Tax in Poland
• Poland Corporate - Taxes on corporate income
• International Tax: Poland Highlights 2018
• Audit of Financial Statements in Poland – Basic Information