1. VAT, EXCISE and CUSTOM DUTIES
standard rate - 22%, (applicable to the majority of goods and services),
reduced rates - 7% and 3%,
7% rate is applied in particular to some goods connected with health care, groceries, building materials and services connected with housing construction, hotel services and transport of persons.
3% rate primarily covers the sale of certain unprocessed or semi-processed produce of agriculture, forestry, hunting and fishery, as well as services related to such produce.
0% preferential rate refers mainly to intra-Community supply of goods, export of goods, supply of books and specialist periodicals.
By virtue of the Act, the exemption from VAT is applicable primarily to services performed by the State Post, financial agency services, services within scope of education, health care and services in the field of public administration (source: Ministry of Finance).
Poland applies the EU Common Custom Tariff. At the Polish Customs Webpage: http://isztar.mf.gov.pl:7080/taryfa_celna/web/browsetariff_PL you can check not only custom duty but also VAT and excise duty rates. There are English, French and German language versions of the page, but the main page is in Polish only. "Kod nomenklatury" means a "CN code", "Przeglądaj drzewo nomenklatury" means "Browse nomenclature catalogue", "Kraj pochodzenia/przeznaczenia" means a "Country of origin/destination", "Wyświetl środki" means "Show duty rates", "Informacje dodatkowe" means "additional information".
Corporate Income Tax (CIT) rate is 19%.
2. Social insurance (obligatory)
Social insurance, percentage of the remuneration (after some adjustments)
Pensions (for example disability pensions)
(1) Insurance is calculated on the base of gross remuneration.
1) Insurance is calculated on the base of gross remuneration.
(2) Percentage rate for work injury insurance depends on the type of employer activity (if employ at least 10 persons) and varies from 0,97% to 3,86%. For example, the rate for retail and wholesales, hotel and catering services and financial services is 0,97%. For real estate, rent and business activities the rate is 1,2%. The flat rate for employers which employ less then 10 people is 1,93%.
(3) Of which 7,75% is deductible from the personal income tax
Sickness allowance equals 80 per cent of remuneration being the basis for allowance's calculation. The allowance may be granted at the rate of 100 per cent if the incapacity was caused by an employment accident or an accident on the way to or from work, an occupational disease, or collides with the pregnancy period, or continues after the 91st day without interruption.
The basic period of sickness allowance payment is 6 months, and 9 months in case of tuberculosis. If there is a chance for restoring capacity, the period of payment may be prolonged by 3 months on a doctor's request.
It is important to note that for the first 33 days of illness in a year, an employee maintains a right for 80% of remuneration (and has no right for a sickness benefit). Therefore, first 33 days of illness are financed by an employer.
Maternity leave Maternity allowance (zasilek macierzynski) is provided for women taking maternity leave for confinement or child raising.
-16 weeks for the first single birth
-18 weeks for every next single birth
-26 weeks in case of a multiple birth
At least two weeks of the maternity leave can be taken before the anticipated date of confinement. An insured has the right to take up after confinement the period of maternity leave not taken prior to child's birth.
Cash benefits: the amount equals 100% of the average monthly remuneration calculated on the basis of the last 6 months. Maternity benefits are paid by ZUS or an employer (if employs more than 20 people) and are financed by ZUS. For more information, see the ZUS (Polish Social Insurance Institution) guides in English and German at http://www.zus.pl.
3. Personal Income TaxThe personal income tax is progressive and is calculated as follows:
Tax base (on the annual basis)
19 % minus the amount of 530,08 PLN
6.504,48 PLN plus 30 % of the excess above 37.024 PLN
17.611,68 PLN plus 40 % of the excess above 74.048 PLN
An employer deducts a 19% tax advance every time remuneration is paid.
A tax-payer has to submit a tax declaration that covers income of the previous year. A declaration has to be delivered until the 30th April of the consecutive year.
See the Ministry of Finance tax guide at:
State as of 1st August 2004
Jacek Czabański, EIC Warszawa
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