Page 45 - CEE Tax Guide 2025

which the income is earned. PIT is calculated
VAT options in Poland Applicable / limits
according to a progressive tax scale at a rate of 12%
Distance selling The OSS system is applicable (below income amount of PLN 120k per year)
from July 1, 2021.
to 32% (above income amount of PLN 120k per
Call-off stock year). A specific rate also applies to individuals
VAT group registration pursuing business activities as sole proprietorships
or partners in partnerships, who may opt for a flat
Cash accounting – yearly EUR 2,000,000/year
amount in EUR (approx.) 19% PIT rate. The tax-free amount is PLN 30k
(depending on the value of the tax base). The
Import VAT deferment
income of taxpayers who are under the age of 26 and
Local reverse charge Limited can be tax-free up to an amount of income not
Option for taxation exceeding PLN 85,528 in the given tax year.
letting of real estate For residential purposes Employee Capital Plan (ECP): Payments to PPK are
(exempt), for commercial made both by the employer and the plan participant.
purposes (23%).
The basic payment to PPK made by the plan
supply of used real estate Exempt (additional participant is equal to 2% (as of January 1, 2022,
requirements needed). this could be 0.5% when additional requirements
VAT registration PLN 200,000/year are fulfilled) of the salary used as the base for
threshold (approx. EUR 50,000) the calculation of retirement and disability SSC,
while the employer pays 1.5% of the salary used
rates of which range from 0.1% to 2%. Transactions as the base for the calculation of retirement and
related to filling a power of attorney and public disability SSC.
administration actions (submitting application
forms, issuing certificates, granting permissions, Personal income falls under the social insurance
etc.) are subject to stamp duty. system: employee’s SC (capped) equals 13.71%;
employer’s contributions equal approximately
Personal income tax / 20.48%. Additionally, the individual is required
to pay a 9% health insurance contribution.
Social security system

PIT is calculated on income. However, the income
calculation differs depending on the source from

Wage related taxes in Poland Minimum wage Average wage in private sector

Exchange rate PLN/EUR 4.26 in EUR in PLN in EUR in PLN
1,094 4,666 1,988 8,482
Total wage cost 1,334 122.00% 2,425 122.00%
Social security contribution (employer) 224 20.48% 407 20.48%
Contribution to PPK (employer) 16 1.50% 30 1.50%

Gross salary 1,094 100.00% 1,988 100.00%
Social security contribution (employee) 150 13.71% 273 13.71%
Healthcare insurance 98 9.00% 179 9.00%
Tax deductible costs -58.60 -5.00% -58.60 -3.00%
PIT 131 12.00% 239 12.00%
Personal allowance -70.31 -6.00% -70.31 -4.00%
Contribution to PPK (employee) 22 2.00% 40 2.00%
Net salary 821 75.00% 1,386 70.00%

Kinga Baran
Head of Tax
Phone: +48 691 20 70 58
E-mail: k.baran@mazars.pl

Central and Eastern European tax guide 2025 Forvis Mazars 45