|EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY|
|Tax rate||Progressive tax rate: 18% – 32% (in some particular cases flat tax rate is possible).|
|Tax period||Calendar year|
|Tax residency / Domicile according to domestic law||Present for more than 183 days in a calendar year in Poland.
Centre of personal or economical interests in Poland.
|Tax registration||Applicable in case PESEL number (personal identification number) is not issued|
|Employment income definition||Any remuneration and benefits in cash or in kind received by an employee for services rendered under an employment agreement|
|Examples of tax exemption||Children allowance depending on the income and number of children. Payments and benefits relating to business trip within statutory limits|
|Specific expatriate concession||Not applicable|
|Income of board members||Depending on the type of contract: income from activity performed personally (resolution, civil law contract), employment income (employment contract)|
|Tax returns||Local employment agreement: the employer is responsible for the monthly tax compliance (tax advance as well as monthly filings).
Foreign employment agreement, monthly individual tax compliance (tax advance any yearly filings).
|Tax payments||As a rule by 20th day of the month following the month in which income was derived and balancing payment upon filing annual tax return.|
|Employment income / income from board members||Art 15/16 Model OECD Tax Convention|
|INTERNATIONAL SOCIAL SECURITY|
|Cross border employments||EU Regulation No 883/2004 and EU regulation No. 1408 / 71.|
|Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
|Social Security Cost as % from gross salary and absolute amounts||Pension contribution (9,76% employee, 9,76% employer); Invalidity contribution (1,5% employee, 6,5% employer), Sickness contribution (2,45% employee), Accident contribution (0.40% – 3.60% employer); Labour fund (2,45% employer); Employees’ Guaranteed Benefits Fund (0,10% employer); Healthcare Insurance (9%, on gross income reduced by Social Security Contributions, employee – 7,75% deductible from tax due).
The pension and invalidity contributions are capped over the income exceeds 30 average estimated national salaries for a given year (PLN 127 890 for 2017, converted against the exchange rate as applicable as of 2 January 2017 approximately EURO 29,000).
|Work permit||EU and EEA nationals do not need a work permit to be working in Poland, if certain conditions are met a notification may need to be filed.
Non – EU and EEA nationals need to obtain a work permit.
|Visa||EU and EEA citizens do not need a visa to enter Poland.
Non- EU and EEA citizens from particular countries may be obliged to apply for a visa before entering Poland.
|Residency permits / registration certificate||EU citizens need to apply for a registration certificate if their stay exceeds three months.
A foreigner can apply for the residence permit for a specified period of time (not exceeding two year period) if circumstances justifying residence in Poland for a period longer than 3 months occur.
|Driving license||The driving licence issued in other EU, EEA countries and Switzerland as well as International Driving Permit are recognized|
|STOCK OPTION PLAN||Tax treatment depends upon the conditions of the Stock Option Plan.|
|ARTICLE 15 OF THE OECD MODEL|
|183 days||Days of physical presence in Poland, including :
-the weekly rest days
-the vacation days obtained within the activivty performed in Poland
-sickness or occupational accident days off
-part of days
-days of departure and arrival
-short interruptions (training, strike days,…)
|Notion of employer||The employer is the person towards who the employee is in a situation of legal subordination. According to the standpoint of Polish tax administration commentary for art. 15 generally refers to entities which, in a practical (economic) sense, can be considered as employers. The consequence of this approach is the application of the concept of “economic employer” e.g. also to international secondment within affiliated companies.|
|Existence of a permanent establishment|| 1) In respect of counties with which Poland has concluded double tax treaties – applicable are PE rules indicated in these acts; 2) if there is no tax treaty, pursuant to internal Polish tax provisions a foreign establishment means:
a) a permanent agency used by an entity whose registered office or management is located in the territory of one state to perform all or part of its activities in the territory of another state, in particular a branch, representation, office, factory, workshop or a natural resource extraction site,
b) a construction site, construction, assembly or system operated in the territory of one state by an entity that has its registered office or management in the territory of another state,
c) a person who acts in the territory of one state for and on behalf of an entity that has its management in the territory of another state, if he is authorised to conclude agreements on behalf of that entity and actually exercises that authority
|Director, Tax Advisory Department – Warsaw, Poland|
|Direct line: +48 22 25 55 200|
|Address: Ul. Piękna 18, 00-549 Warszawa|