2. Taxes in Poland are levied by both the federal and regional governments. The most important revenue
sources include the income tax, Social Security, corporate tax and the value added tax, which are
all applied on the national level.
3. Value-Added Tax apply to most sale of goods in Poland. 23% is the normal rate. Though lower rates of 8%
percent, 5% percent also apply for foods stuff. Furthermore, some services are taxed at 0% tax rates or
exempt from value-added tax.
4. Furthermore, a range of social security contributions apply to all in the workforce, which is shared
by the employee and the employer.
5. Insurance policy Total Employee % Employer %
Pension Fund 19.52% 9.76% 9.76%
Disability Fund 8.00% 1.5% 6.5%
Bridning Pension Fund - - 0-1.5%
Illness Fund 2.45% 2.45% -
Accident Fund 0.67%-3.86% - 0.67%-3.86%
Employees Benefits Fund 0.10% - 0.10%
Labor Fund 2.45% - 2.45%
Total (up to limit) 19.48%-24.17% 13.71% 19.48%-24.17%
Total (past limit) 5.67%–8.86% 2.45% 3.22%–6.41%
Social Security Contributions
6. Generally the greatest part in the Poland’s total budget revenue are indirect taxes – 65 % in 2010
(which comprises 165.189.646.000 PLN). For the purpose of this study, only corporate income tax
(CIT), personal income tax (PIT) and goods and services tax (VAT) are explained here. In 2010 the
total budget revenue from the 3 taxes: VAT, CIT and PIT amounted to 198.258.634.000 PLN
(77%).
7. The tax system in Poland develops gradually. The purpose is to encourage foreign investors to
invest in Poland, and as a consequence to create new places of employment. To gain it, the
corporate income tax rate was reduced from 40% to 19% and relatively low labour costs.
