Andrii Romanchuk, attorney at law and senior partner at EUCON Legal Group, participated in the InvestPro Poland & Ukraine conference, presenting the relevant topic: “Doing business in Poland: tax and legal aspects and future trends”.
During his speech, he spoke about the main taxation rates in Poland, paying attention to the taxation of natural persons, corporate income taxes (CIT), Estonian CIT, peculiarities of VAT, real estate tax, etc.
In his speech, Andrii noted that the basic corporate income tax (CIT) rate in Poland is 19%, but there is also a preferential rate of 9% if the annual income does not exceed EUR 2 million. Regarding the taxation of individuals, the speaker emphasised that there are three forms of taxation: a tax scale (12% up to PLN 120,000 per year and 32% above PLN 120,000 per year), a flat tax (19%) and a fixed tax amount that varies from 2% to 17% depending on the type of activity.
Andrii Romanchuk elaborated on the taxation of individuals. In particular, he noted that according to Polish law, individuals residing in the territory of the Republic of Poland are subject to taxation on their total income regardless of the place of their source of income.
Among the challenges associated with entering the Polish market, the speaker noted issues related to accounting, opening bank accounts, access to financial instruments (loans), cultural differences, management approach (authoritarian, owners/managers/team), attempts to do business remotely, etc. He also named the key regulatory barriers for start-ups in Poland, namely: frequent changes in legislation; no tax benefits; bureaucracy; significant initial registration costs.