Poland’s tax landscape offers appealing incentives for businesses, distinguishing itself with a mix of benefits designed to support both emerging and established companies. Key highlights include a standard corporate tax rate of 19%, with a reduced rate of 9% for new companies or those with turnovers up to EUR 2 million. Special incentives for intellectual property-related income further reduce tax rates to 5%, encouraging innovation.

The introduction of the “Estonian tax system” allows eligible companies to enjoy a 0% tax rate on undistributed profits for four years, with specific conditions applying to shareholders, investments, and employee count. Moreover, businesses operating within Poland’s Free Economic Zones can benefit from complete profit tax exemption, underlining Poland’s commitment to fostering a conducive business environment.

For companies engaging in EU trade, dividend distribution among EU shareholders can attract a 0% tax rate, provided certain ownership criteria are met. Additionally, VAT and EORI registrations become pertinent for companies exceeding an annual turnover of EUR 45,000, ensuring compliance and smooth operations within the EU market.

Poland’s strategic tax benefits underscore its position as a competitive and attractive destination for business within the European Union, offering a robust framework for growth, innovation, and international trade.