Taxation in Poland

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Taxes in Poland are levied by both the central and provincial governments. Tax revenue in Poland is 31.7% of the country's GDP in 2009.[1] The most important revenue sources include the income tax, Social Security, corporate tax and the value added tax, which are all applied on the national level.

Income earned is generally subject to a progressive income tax, which applies to all who are in the workforce. For the year 2014, two different tax rates on income apply[2]

Annual income Tax rate
3091-85,528 PLN 18%
over 85,528 PLN 32%

Furthermore, a range of social security contributions apply to all in the workforce, and are shared by the employee and the employer. These insurance contributions are paid by both private and public employees until a given ceiling. For the year 2014, the rates in the following table apply[3]

Insurance policy Total Employee % Employer %
Pension Fund 19.52% 9.76% 9.76%
Disability Fund 8.00% 1.5% 6.5%
Bridging Pension Fund - - 0-1.5%
Illness Fund 2.45% 2.45% -
Accident Fund 0.67%-3.86% - 0.67%-3.86%
Employees Benefits Fund 0.10% - 0.10%
Labor Fund 2.45% - 2.45%
Total (up to limit) 19.48%-24.17% 13.71% 19.48%-24.17%
Total (past limit) 5.67%–8.86% 2.45% 3.22%–6.41%

Value-Added Tax applies to most trade in goods in Poland. 23% is the basic rate.[4] Lower rates of 8% and 5% also apply for foodstuffs.[5] Furthermore, some services are taxed at 0% tax rate or exempted from value-added tax. Overall worker tax rate and mandatory insurance amount to 53%. Additionally there is VAT tax from 5% to 29% with heavily regulated exemptions.

See also[edit]

References[edit]

  1. ^ "OECD - Tax GDP Poland".
  2. ^ "KPMG - Income Tax".
  3. ^ "KPMG - Poland Taxes".
  4. ^ "KPMG - Poland: VAT essentials".
  5. ^ "KPMG - Poland: VAT essentials".