Personal income tax is payable at two main rates, based on
income. For income under PLN556, there is zero tax liability.
For income between PLN557 and PLN85,528, tax is payable at
18%. For income over PLN85,528 tax is due at 32%. The first
PLN3,091 of earnings is free from tax. Self-employed individuals
can elect to pay a flat rate of 19% on income, subject to
certain conditions. Individuals must obtain a Polish Tax ID
number (NIP).
Corporation Tax is levied at 19%. Dividends are usually taxed
at 19% and profits from the sale of company shares are also
taxed at 19%. A company may make allowable deductions from
gross revenue to arrive at the taxable base, on which tax
liability will be calculated. Allowable costs are those defined
as essential to generate or protect revenue.
The standard rate of VAT in Poland is 22%, and there are
reduced rates of 7% and 3% for certain supplies and services.
Public transport, food, periodicals and tourist services are
subject to the reduced rate of 7%. Certain unprocessed foodstuffs
are rated at 3%. Financial products, books, health services
and agricultural machinery are examples of exempt supplies.
A company or individual must register for VAT if turnover
is likely to exceed PLN100,000 (prior to January 1, this threshold
was PLN50,000) in any year.
Capital Gains Tax is payable on the sale of a property at
19% of the profit (if the sale takes place within five years
of purchase), after deduction of costs – this applies
to sales of properties owned from January, 2007 onwards. For
properties purchased prior to 2007, CGT is due at 10% of the
net profit. Other types of capital gain are generally treated
as ordinary corporate or personal income, and taxed accordingly.
Tax on property rental income is payable at variable rates,
to a maximum of 20%.
A Civil Activities Tax is payable by anyone purchasing a
property, at the rate of 2% of market value. Municipal authorities
levy Polish property taxes. This is based on the area of the
land on which the property is located, and is generally imposed
at between PLN0.33 and PLN0.68 per square metre.
I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
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