Poland - Tax Guide for Freelance Contractors

Tax residents in Poland:          are liable to pay Polish tax on their worldwide income,
Non tax residents in Poland:   are liable to pay tax on Polish source income only.

Individuals will be regarded as tax residents:

• if they have their centre of personal or economic interests in Poland,
• if their stay in Poland exceeds 183 days in a tax year.

As a general rule, spouses are taxed separately, but in some cases they can elect to file jointly including if they have their residencies in different EU member states.

Taxable income includes:

• salaries,
• bonuses,
• all other payments or benefits made on behalf of the employee.

Certain deductions are permissible for 2009 including:

• moving costs reimbursed by the employer are exempt up to the equivalent of 200% of the wages earned in the month in which the removal takes place if the transfer is requested by the employer.
• standard employment deduction of PLN 1’335,
• social security contributions,
• part of health contribution up to 7.75% of the base for health insurance contributions.
• allowance of PLN 1’112.04 per minor child or children under the age of 25 if they continue to study.

Income tax rates for 2009:

• 18.00% from PLN 3’091 (personal allowance) up to PLN 85’528,
• 32.00% over PLN 85’528.

Income tax must be paid in advance every month and then adjusted at the end of the tax year.

Dividends are taxed at 15%, profits from the sale of shares are taxed at 19%.

There are no special rules for expatriates.

Filing date:

Annual tax returns must be filed by 30 April in the year following the tax year.