The most common question entrepreneurs search for before opening a company in Poland is: What taxes are there in Poland? How much will I have to pay to the state?
We provide a detailed answer to all potential corporate taxation questions in Poland, including taxes for individuals and business owners.
Current data as of 2026
Tax / Regime | Who it applies to | Rate / Range |
CIT (Standard) | All companies in Poland | 19% |
CIT (preferential for small/new) | New and Small Companies (Turnover ≤ €2 Million) | 9% |
VAT (Rate) | VAT payers in Poland | 23% (Standard); 8%, 5%, 0% (Reduced) |
WHT on Dividends (Standard) | Dividend payments to Polish residents | 19% (Standard) |
WHT on Dividends | Dividends to nonresidents | Under the Treaty |
WHT on Director’s Remuneration (Non-resident) | Remuneration to a Non-resident director | 20% |
The overall tax burden for an entrepreneur or shareholder in a Polish company consists of two parts: first, corporate taxes, and second, personal income taxation (on the owner’s dividends, salary, or director’s remuneration).
Personal income taxes depend on several factors, such as the beneficiary’s country of tax residence and the existence of a double taxation treaty between states.
Example: If the standard dividend tax rate in Poland is 19%, for a Ukrainian resident Poland–Ukraine Double Taxation Avoidance Treaty sets the rate at 15%. However, for Ukrainian residents, the war tax remains mandatory.
Learn more about double taxation rules in our article.
The same applies to director remuneration. If the director is a non-resident, such remuneration may be taxed at 20%, but it is deductible from the company’s income.
Corporate taxes in Poland include CIT and VAT.
Standard CIT in Poland
The standard Corporate Income Tax (CIT) rate in Poland is 19%. However, all newly established and small companies (with annual turnover up to €2 million) are eligible for a reduced corporate tax rate of 9%.
The tax is paid on an annual profit using an advance payment method. This means that for the profit earned in the first month of operations, the company immediately pays 9%, but that profit can be used later. After the end of the financial year, the company submits reports and requests a refund for any overpaid corporate tax.
Estonian CIT in Poland
Poland also offers a special taxation system known as,Estonian CIT, introduced on January 1, 2021.
This system is an alternative to the traditional corporate income tax (CIT) and follows a principle similar to the Estonian model: tax is paid not on the company’s profit, but only upon its distribution to founders/shareholders, for example, as dividends.
The Estonian CIT rate is 10% for small companies and 20% for all other companies. Transitioning to this tax system requires meeting certain conditions, including employing at least three people.
IP Box in Poland
Additionally, Polish tax law allows qualifying income from intellectual property to be taxed at a reduced rate of 5% under the Poland IP Box Regime. This includes income from patents, copyright on computer programs, registered pharmaceuticals, and similar qualified intellectual property.
VAT for business in Poland
VAT (Value Added Tax) is a tax applied at each stage of production and sale of goods and services, but the final consumer bears the actual burden.
Therefore, VAT does not directly affect a company’s tax burden. For companies operating within Poland, the obligation to register for a VAT number arises only after reaching a turnover of 200,000 PLN. However, a company can voluntarily register for VAT before reaching this threshold. Having a valid VAT number enables the company to reclaim the VAT it has paid.
In certain cases, VAT registration may be required before reaching the 200,000 PLN threshold. For example, selling electronic services to end consumers in the EU or purchasing goods from other EU countries may require immediate registration for European VAT.
The standard VAT rate in Poland is 23%. Reduced rates of 8%, 5%, and 0% apply to various business categories. Additionally, for example, when selling electronic services to end consumers in the EU, a company must charge VAT at the client’s local rate and manage it through the OSS system.
To assess the necessity of VAT registration for your business model, consult WoBorders specialists. We provide detailed guidance on VAT calculations and refunds tailored to your specific business needs.
If you plan If you plan to register a Spółka z o.o. in Poland, it is recommended to evaluate all tax burdens and choose the best option carefully. Our team is ready to assist.
Our team is ready to assist. For information on taxation for sole proprietors in Poland , refer to the relevant materials.
Frequently asked questions aboy taxes in Poland for business
The tax burden consists of two blocks: corporate taxes (CIT, VAT) and personal taxes (on owner dividends, salary, or director remuneration).
Corporate taxes are levied on the company itself (CIT, VAT). Personal taxes apply to the beneficiary’s income: dividends, salaries, or director remuneration, depending on tax residency and applicable treaties.
19%. New and small companies with a turnover of up to €2 million are eligible for a reduced rate of 9%.
In advance of the annual profit. After the financial year, the company submits reports and, if applicable, requests a refund for overpaid tax.
An alternative profit taxation model: tax is levied only when profit is distributed (dividends). Rates: 10% for small companies and 20% for others. Transition requires meeting conditions, including employing at least three people.
A regime that allows qualified IP income to be taxed at 5% (e.g., income from patents, copyright on computer programs, pharmaceuticals, etc.).
The standard rate in Poland is 19%. The standard rate in Poland is 19%. The Poland–nonresidents treaty, the rate for their residency.
It may be subject to 20% withholding tax and is deductible from the company’s income.
The end consumer ultimately pays VAT. For the company, it involves administration: issuing invoices, bookkeeping, filing returns, and reclaiming input VAT.
After reaching an annual turnover of 200,000 PLN in Poland, voluntary registration is possible to reclaim input VAT earlier.
For certain models, such as B2C sales of electronic services in the EU or intra-EU purchases, immediate European VAT registration may be required.
Standard: 23%. Reduced: 8%, 5%, and 0%, depending on goods/services and conditions.
Charge VAT at the client’s local rate and manage it via OSS (One Stop Shop).
Yes. With a valid VAT registration and properly documented invoices, input VAT can be reclaimed.
Depends on income model, expense structure, reinvestment and dividend plans, number of employees, and share of IP income. Scenarios to model: CIT (9/19%), Estonian CIT, and IP Box.
They may reduce withholding rates if residency is confirmed and procedures are followed.
WoBorders will calculate your scenarios (CIT/Estonian CIT/IP Box, VAT obligations, owner/director payments) and prepare a step-by-step plan.
