Expatriate tax ebook - Poland

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
Income from capital gains (e.g. sale of shares), dividends and interest is subject to taxation at a fixed rate of 19%. The above mentioned kinds of income are not added to earnings from other sources.

Inheritance, estate & gift taxes
A liability to Polish inheritance and gift tax depends not only on the Polish location of goods and assets, but also on Polish nationality (or Polish residence) of the beneficiary if the goods or assets are located outside Poland. The rates vary depending on the degree of relationship between the donor and the beneficiary.

Investment income
As previously mentioned, income from dividends, and interest is taxed as a rule at a fixed rate of 19%. The above kinds of income should not be added to earnings from other sources.

Local taxes
There are local taxes (the most important are those levied on real estate and transportation equipment) to which an individual is liable in Poland.

Real estate tax
The tax law only stipulates the maximum amounts of the taxes and the local authorities decide the actual rates.

Moreover, please note that the income derived from the disposal of real estate (acquired after 31 December 2006) performed within 5 years from the end of the year during which it was acquired, is subject to 19% income tax rate. The taxable base is the difference between the profits from the sale and costs of acquisition of the property. Please note that different rules apply to the real estate acquired before 31 December 2006.

Social security taxes
The rates for social security vary and details are in the pocket tax booklet attached below:

Social security contribution	Contribution as percentage of the taxable base	Financing by
		Employer	Employee
Pension	19.52	9.76	9.76
Disability	6.00	4.50	1.50
Sickness	2.45		2.45
Work-related accidents	0.67-3.60	0.67-3.60
Total in 2009	28.64-31.57	14.93-17.86	13.71

Social security contributions for pension and disability are paid only up to an annual cumulative earning limit. In 2009 the limit is 95,790 PLN.
Moreover, there is a contribution to Labour Fund, which is to be financed by the employer. The contribution amounts to 2.45% of the remuneration.

Persons eligible for social insurance are subject to health insurance amounting to 9%. 7.5% of the healthcare contributions paid in tax year may be deducted from tax.

Stock options
Shares received by the employee from the employer should be treated as taxable income from labour agreement (18% and 32% since 1 January 2009). The sale of shares is subject to taxation at a fixed rate of 19%.

Wealth tax
There is no wealth tax in Poland.

Other specific taxes
There are no other specific taxes in Poland.

Information about Poland:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities