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Payroll in Poland
Updated on Tuesday 11th April 2023 Rate this article
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Payroll in Poland is not in place as a tax per se, however, the employer is required to make social security contributions and advance payments on the income tax of his employees’ salary.
In Poland, social security contributions are remitted by the employer, calculated as part of the employee’s taxable earnings. To these, the employee himself will also make his own healthcare contribution.
Company owners will need to observe these payments, although there is no specific Polish payroll tax applicable separately.
Below, you can read more about the social security contributions, and what you are expected to follow in terms of payroll management, although there is no specific tax for payroll in Poland.
Our Polish company formation agents are able to answer any other questions about corporate taxation, the applicable rates, as well as the reporting requirements.
The Polish payroll tax
As previously mentioned, there is no tax on payroll in Poland, however, the employer is the one responsible for remitting the social security contributions. The following rates and principles apply:
- - both the employer and the employee make social security contributions of a total of about 35% of the employee’s salary;
- - approximately 21% of the contributions are paid by the employer and 14% by the employee;
- - the employee contributions are deductible when calculating the taxable earnings for the respective employee;
- - the employer is also the one to collect and remit the employee’s 9% healthcare contribution (in some cases, this can be lower);
- - Employee Capital Plans apply to companies in Poland irrespective of their number of employees (a type of retirement savings plan).
Please note that the rates listed above were in place at the time this article was written. These can be subject to change.
Do you have questions about other issues, other than the contributions that are made not under the tax for payroll in Poland, but as part of the general social security contributions? Our team can answer your questions.
Taxation in Poland
All companies incorporated in Poland, whether as a locally registered legal entity, or as a branch of a foreign company, are expected to follow the tax laws and the requirements for tax filing and payment, along with preparing and submitting the annual financial statements.
As payroll in Poland is not in place as a separate tax, perhaps you are interested in knowing more about other applicable taxes. We list these below:
- · Corporate income tax: 19% standard rate and 9% reduced rate (available to small taxpayers and those companies starting their activities with revenues that do not exceed 2 million EUR in the respective year; certain exceptions apply;
- · Dividends: generally exempt from taxation (conditions apply); when taxable, dividends can be subject to a withholding tax of 19%;
- · Value-added tax: a standard rate of 23% and two reduced rates of 8% and 5% apply; some types of goods and services can be zero-rated or exempt;
- · Other taxes: stamp duty, real property tax, transfer tax; our team can answer your questions concerning these taxes;
Additionally, Poland has signed more than 80 tax treaties with other EU and non-EU countries.
Tax compliance and requirements
Understandably so, company owners in Poland are not only concerned with the applicable tax rates, other than the Polish payroll. They must also make sure that they observe the tax filing and payment calendar (which also includes the deadlines for the VAT filing and payment for companies that are subject to this tax).
Receiving personalized solutions and answers to tax-related questions is easier when outsourcing these matters to a local team of Polish accountants, such as our own.
Contact us for more information about payroll, the relevant taxes, and tax compliance in Poland.
Meet us in Poland
Maciej Oniszczuk is the Managing Partner of our company. He is specialized in commercial law and has helped many businessmen set up companies in Poland.
Call us now at + 48 570 978 609 to set up an appointment with our company formation agents in Poland. As our client, you will beneficiate from the joint expertise of local lawyers and international consultants for opening a company in Poland.
We offer:
- cost-efficiency: competitive company formation prices;
- prompt response to your inquiry (maxim 24 hours);
- free and complete legal information featured on our site, at your disposal.
Contact usTestimonials
Starting a company in Poland can be difficult since it involves such complex procedures. The team from CompanyIncorporationPoland.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.
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