Expatriate tax ebook - Poland

Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
The working permit is necessary for non-EU employees and the EU employee is not obliged to obtain a working permit in Poland.

Employment visas
Visas may be required depending upon country of origin.

Tax returns and compliance
An annual tax return must as a rule be filed (as well as the tax due be paid) by 30 April of the following year, stating all sources of income and showing any additional tax due. However, Polish tax non-residents leaving Poland before that date are obliged to submit the tax return for the tax year before they leave the territory of Poland.

Polish employers must withhold tax on their employees’ taxable salary and make payments to the tax office by the 20th day of the month following the month of payment. However, expatriates whose salary is paid by a foreign entity, are personally responsible for monthly reconciliation of tax advances. As a rule, the deadline is the 20th day of the next month.

Tax year
The Polish tax year runs from 1st January to 31st December.

Income Tax Rates
The tables below shows the tax brackets applicable in 2011

Taxation Base (PLN)		In 2011 a tax amounts to:
Over	Up to
	85 528	18% minus the tax reducing amount PLN 556.02
85 528		PLN 14,839.02 + 32% on the surplus over PLN 85,528.00

Sample income tax calculation for a non resident executive

				PLN
Base Salary				220,000
Bonus				10,000
Car allowance				6,000
Medical benefit				1,200
Total earnings				237,200

Less:	Fixed lump sum for expenses			-1,335
	social contributions:	100,770	13.71%	-13,816
		136,430	2.45%	-3,345
				-17,158
	Healthcare contributions	220,042	9.00%	-19,804

Less:	allowance for internet			-760

Net taxable income				217,947

Less:	standard tax credit			-556
		85,528	18%	15,395
		132,419	32%	42,374
				57,213
Less tax deductions:
	healthcare contributions	220,042	7.75%	-16,503
	allowance for children			-1,112

Net tax liability				39,598
Take-home pay				153,440

Information about Poland:

Last updated on 16 June 2011

This information has been provided by Grant Thornton Fr¹ckowiak Sp. z o. o., a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Fr¹ckowiak Sp. z o. o. nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.

Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
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