Last updated: 27 Apr 2012
Taxation
All companies intending to operate a business or undertake business activity are given a taxpayer identification number after registration with the appropriate local tax office. In order to calculate tax, all taxpayers are obliged by law to maintain private and individual tax accounts. The taxation system is uniform across the Republic of Poland, and only small differences may occur in local taxes. Generally, foreign companies and individuals pay the same taxes as Polish legal or natural persons. The exceptions to this rule are businesses where taxation is regulated by international treaties concluded by Poland (Agreements on Avoidance of Double Taxation). The main taxes in Poland are:
- corporate income tax
- personal income tax
- tax on goods and services (VAT)
- excise tax
- stamp duty
VAT of 22 per cent is levied on the duty-paid value of most goods. A reduced seven per cent rate of VAT applies on products, such as basic foodstuffs, agricultural and forestry products, medical drugs, goods for children, clothes, musical accessories, press publications, certain agricultural machinery and building materials.
Excise tax is applied on luxury goods whether imported or locally produced. Goods affected include petrol, cars, alcohol, cigarettes, salt, furs, yachts, video cameras and certain television sets.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.
Bilateral agreements
Australia has social security agreements with several countries that address the issue of 'double super coverage' for employees sent to work overseas. To take advantage of these agreements, Australian employers sending employees overseas to work must apply to the Tax Office for a Certificate of coverage.
For more details, please visit the Australian Taxation Office website.