Poland is a sovereign state in Central Europe, a parliamentary republic. Warsaw is the capital and the largest city of the country. Polish is the official language.
Advantages of using Poland as your jurisdiction of choice:
1. EU membership since 2004
2. Schengen state
3. Growing industrial and agricultural economy
4. Foreign investment promotion programs
5. Skilled workforce
6. Economic citizenship program
7. Fourteen free zones are open with special low-tax regimes
8. No currency control
9. Numerous project funding capabilities
10. Business online possibilities
11. No local residency requirement for directors
• Public company (spółka akcyjna)
• Commandite company (spółka komandytowa)
• Limited liability company Sp. Z.o.o
Taxation and statutory requirements at a glance
Corporate tax rate is 19%. Special tax relief is applied in free zones, where the corporate tax rate may be reduced to zero for up to ten years.
Standard VAT rate is 22%. Special reduced rates (0%–8%) are applied for various goods and services. Export deliveries are VAT-free. A VAT refund is possible.
Excise tax is imposed on oil products, energy consumption, alcohol and tobacco, and cars with high cubic capacity engines (2 litres and more).
Withholding tax on dividends is 19% if there is no double taxation treaty, and 0% otherwise.
Income tax is progressive from 19% to 40%.
Accounting, audit and filing requirements
Accounting is obligatory. VAT returns have to be filed monthly. A corporate tax return has to be filed monthly or quarterly. Social insurance, if any, has to be paid every month.
An annual report has to be filed. Simplified reporting may be done if two out of the following three terms are met:
• number of employees or staff numbers on average is less than 50
• annual revenue does not exceed €2 million
• net profit is within the €4 million limit
Holdings, public companies, banks, insurance companies and pension funds have to file an audit report. Other companies shall file an audit report if two out of the following three terms are met:
• number of employees or staff numbers on average is more than 50
• total net assets are more than €2.5 million
• net profit is more than €5 million