Poland Corporate Tax - Guide for International Expansion

Are you considering expanding your business operations to Poland? Understanding the country's corporate income tax system is essential for making informed decisions about your European expansion strategy.

Poland offers a competitive tax environment within the European Union, with clear regulations and established procedures for international businesses. Whether you're planning to establish a subsidiary, acquire a local company, or simply understand your tax obligations as a foreign entity operating in Poland, getting familiar with the corporate tax landscape is crucial for your success. Wise Business can help streamline your financial operations in Poland, making it easier to manage payments and maintain compliance with local requirements.

💡 Learn more about Wise Business

This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Poland Corporate tax rate in 2025

The standard corporate income tax rate in Poland is 19% for most companies, making it one of the more competitive rates within the European Union. Small companies with annual revenues not exceeding EUR 2 million are eligible for a reduced rate of 9%.¹

Poland's corporate tax system applies to both resident and non-resident companies, with resident companies being taxed on their worldwide income whilst non-resident companies are only taxed on Polish-source income.¹ The country has implemented various tax incentives and special economic zones that can provide additional benefits for qualifying businesses.²

For companies operating in Special Economic Zones (SEZ), corporate income tax exemptions are available based on the amount of investment and jobs created. Additionally, Poland offers a preferential IP Box regime with a reduced 5% tax rate on income derived from qualifying intellectual property rights, including patents, copyrights for computer software, and know-how.²

The country has also introduced anti-avoidance measures in line with EU directives, including the implementation of Pillar Two global minimum tax rules for large multinational enterprises with consolidated revenues exceeding EUR 750 million.^{3 4}

Read more about the corporate tax in United States

How to pay corporate tax in Poland

Corporate income tax in Poland must be paid in Polish złoty (PLN) through the country's electronic tax system. The Polish Tax Administration requires most businesses to use electronic filing and payment methods, making the process more streamlined for both domestic and international companies.⁴

Companies must file their annual corporate income tax returns (CIT-8) by the end of the third month following the end of their tax year. For companies following the calendar year, this means the deadline is 31 March.⁶ Monthly advance payments are required throughout the year, calculated based on the previous year's tax liability or current year estimates. Eligible companies, including new businesses or those with revenue below EUR 2 million, may opt to pay quarterly advance payments instead.⁷

Advance payments are due by the 20th day of the month following the relevant period.⁷ Late payment of corporate income tax incurs interest charges at a rate determined by the Minister of Finance, currently 14.5% annually.⁸

Poland's tax authority, Krajowa Administracja Skarbowa (KAS), provides an online platform called e-Urząd Skarbowy for electronic filing and payments. This system allows companies to submit returns, make payments, and communicate with tax authorities digitally.⁵

Late filing or underpayment of corporate income tax can result in fines or interest charges. The exact amounts are set by Polish tax law and vary depending on the severity and duration of the noncompliance.⁹

Let's calculate the annual tax liability for a company with a turnover of PLN 6.5 million (approximately £1.5 million). Assuming a profit margin of 10%, the taxable profit would be PLN 650,000.

At Poland's standard corporate tax rate of 19%, the annual tax due would be:

PLN 650,000 × 19% = PLN 123,500

If this company fails to pay on time, interest charges apply. For a 30-day delay, the additional cost would be:

PLN 123,500 × 14.5% × (30/365) = PLN 1,471.00

When expanding your business to Poland, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

Get started with Wise Business 🚀

Tax Compliance in Poland

A few tips to keep your company compliant with Polish tax regulations:

• Register for taxes early: After incorporation, companies must register for Corporate Income Tax (CIT), VAT, withholding tax (WHT), and employer contributions to ZUS. Early registration ensures legal operation and helps avoid penalties.
• Prepare financial statements: All companies, including service providers, must prepare annual financial statements by March 31 if they follow the calendar year. Larger firms also need to prepare an activity report by this date.
• Hold a shareholders’ meeting: Financial statements must be approved by June 30 at the annual meeting.
• File with the court/register: Approved financial documents must be submitted electronically to the Financial Documents Repository by July 15.
• File the annual tax return (CIT-8): The corporate income tax return is due by the end of the third month after year-end (usually March 31).¹⁰ Returns must be filed online, along with supporting financial statements.

In Poland, the management board is responsible for compliance, reporting, and administration. Staying on top of these deadlines is critical, as penalties apply for late filing or non-compliance. Businesses may also benefit from professional support, such as corporate tax associate jobs or advisory services, to ensure timely and accurate reporting.

International Expansion to Poland

Poland is a solid option for companies looking to expand into Central and Eastern Europe. The country has nearly 38 million citizens and is the region’s largest economy. It borders seven nations and has direct access to the Baltic Sea. Warsaw, the capital, is a leading financial and business hub.¹¹

It’s also a member of the EU, OECD, and G20, which makes it highly integrated into global markets. Businesses gain direct access to more than 500 million EU consumers without trade restrictions.¹¹ The country contributes 4.4% to the EU’s GDP, and its economic performance is among the strongest in Europe.¹² GDP per capita has grown by 150% since 1989, reflecting long-term resilience. In 2024, growth reached 2.9%, supported by rising wages, private consumption, and government spending. Forecasts for 2025 and 2026 remain positive.

Manufacturing costs stay competitive, thanks to lower electricity prices than the EU average. Social indicators also support economic stability, since only 16% of the population is at risk of poverty compared to 21% across the EU.¹³ Strong infrastructure adds to the appeal. The Port of Gdańsk handled 77.4 million tons of cargo in 2024, and Poland scored 3.6 out of 5 on the World Bank’s Logistics Performance Index. ^{14 15}

Businesses can establish their set-up in Poland by following these steps:

1. Conduct market research to understand the local environment and audience.
2. Draft a business plan and forecast suited to the Polish market.
3. Choose a business name and define activities through the PKD code.
4. Select the proper legal structure.
5. Open a bank account in Poland.
6. Register with CEIDG for sole proprietorships or KRS for partnerships and corporations.
7. Complete registration with ZUS for social security contributions.

If you live in Poland and wish to start a business or expand your business in this region, you need to read and abide by all its laws. Keep tabs on the latest government policies to ensure you’re on the right track!

Read more about the corporate tax in Nevada

Incorporation of Business in Poland

To incorporate a business in Poland, you must file documents at a notary’s office or through the online Portal of Court Registers. Several details are required at the time of incorporation, including:¹⁶

• IDs of partners or shareholders (passport or residency card if no Polish ID).
• Complete information about partners: names, legal status, and insurance details.
• A company name that is unique in the Polish register.
• A registered office address inside Poland.
• The objective and scope of the company’s activity.
• Details of share capital, number of shares, and clauses on whether members can hold multiple shares.
• The company’s articles of association (AoA).
• Declarations confirming capital contributions.
• A shareholders’ resolution appointing the management board.
• A list of board members and statements of consent to serve.

This documentation ensures that the entity is properly registered and recognized under Poland’s Commercial Companies Code.

Business Entities in Poland ¹⁷

• Limited Liability Company (Sp. z o.o.): The most common entity for SMEs. It requires a minimum share capital of 5,000 PLN (around €1,200) and at least one director. There are no restrictions on foreign shareholders. Annual accounts must be prepared and filed.
• Limited Partnership: This requires at least two individuals. One partner is unlimitedly liable for debts, while the other enjoys limited liability.
• Professional Partnership: Designed for licensed professions such as doctors or lawyers. Partners are not personally liable for business debts.
• Registered Partnership: Suitable for small businesses run by at least two partners, both of whom bear unlimited liability.
• Limited Joint Stock Partnership: A hybrid structure where at least one partner has unlimited liability, while shareholders contribute capital without liability for debts.

Understanding entity types is essential, as tax obligations differ. For example, a Sp. z o.o. is subject to the corporate tax rate in Poland, while partnerships may follow different tax rules. Investors should also be aware of the corporate tax return due date and compliance requirements when choosing an entity.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires a strategic approach that balances compliance with cost efficiency. Here are essential practices for international businesses operating in Poland and other countries.

Maintain robust compliance frameworks across all jurisdictions where your business operates. This includes registering with local tax authorities, filing returns on time, and staying current with changing regulations. Poland's membership in the EU means businesses must also consider European directives on tax transparency and anti-avoidance measures.

Leverage double taxation treaties effectively to minimise your overall tax burden. Poland has signed double taxation agreements with over 80 countries, which can help prevent the same income from being taxed twice. Understanding these treaties and properly documenting your tax residency status is crucial for optimising your international tax position.

Implement transfer pricing documentation that meets local requirements and OECD guidelines. Poland follows OECD transfer pricing principles and requires detailed documentation for related-party transactions. Maintaining contemporaneous documentation helps ensure compliance and reduces the risk of adjustments during tax audits.

Consider establishing holding company structures in jurisdictions with favourable treaty networks. Poland can serve as an effective holding company location for investments in Central and Eastern Europe, given its extensive treaty network and EU membership benefits.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Poland efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

Get started with Wise Business 🚀

FAQs - Corporate tax in Poland

Who is liable for corporate tax in Poland?

All companies incorporated in Poland are considered tax residents and are liable for corporate income tax on their worldwide income. Foreign companies are subject to Polish corporate tax only on income derived from Polish sources, such as through a permanent establishment or specific types of Polish-source income like dividends, royalties, or capital gains from Polish assets.

Are there any tax incentives for businesses in Poland?

Yes, Poland offers several tax incentives including Special Economic Zones with potential tax exemptions, the IP Box regime with a 5% tax rate on qualifying intellectual property income, and R&D tax relief allowing for 200% deduction of eligible research and development costs. Small companies with revenues below EUR 2 million benefit from a reduced 9% corporate tax rate.

What is the tax treatment of dividends in Poland?

Dividends paid by Polish companies to residents are generally subject to 19% withholding tax. However, dividends paid to EU companies meeting certain conditions may be exempt under the EU Parent-Subsidiary Directive. Dividends received by Polish companies from foreign subsidiaries may qualify for participation exemption if specific holding requirements are met.

What is the process for registering for corporate tax in Poland?

Companies must register with the tax office within 7 days of commencing business activity in Poland. Registration involves submitting form NIP-1 to obtain a tax identification number (NIP) and registering for VAT if applicable. Foreign companies establishing a permanent establishment must also register within 7 days of commencing activities.

What are the common pitfalls to avoid regarding corporate tax in Poland?

Common mistakes include failing to register on time, inadequate transfer pricing documentation, missing monthly advance payment deadlines, and incorrectly applying double taxation treaty benefits. Companies should also be aware of controlled foreign company (CFC) rules and ensure proper substance requirements are met for any foreign subsidiaries to avoid anti-avoidance provisions.

Sources used in this article:

1. PwC Tax Summaries: Poland Corporate Income Taxes
2. PwC Tax Summaries: Poland Tax Credits and Incentives
3. PwC: Global Minimum Tax Country Tracker
4. Chambers Practice Guides: Corporate Tax 2025 - Poland
5. EY Tax News: Poland Updates E-invoicing Regulations
6. Top Family Friendly Sites: Filing Corporate CIT-8 in Poland
7. Flick Network: Corporate Income Tax Poland
8. PwC Tax Summaries: Poland Corporate Tax Administration
9. Progress Holding: Late Tax Declaration Filing in Poland
10. FlatFeeCorp: Poland Company Annual Compliance
11. Trade.gov.pl: Why You Should Invest in Poland
12. European Union: About Poland
13. VP Bank: Why Poland is Europe's Next Big Real Estate Opportunity
14. World Bank: Logistics Performance Index (LPI)
15. World Bank: Poland Logistics Performance Scorecard
16. Trade.gov.pl: How to Set Up a Company in Poland
17. Biznes.gov.pl: How to Set Up a Business

Sources last checked 09/09/2025