Income Tax Rates in Poland:

• 12% – This rate applies to taxable income up to PLN 120,000 (approx. €27,000) per year.
• 32% – If your taxable income exceeds PLN 120,000, you’ll pay 32% tax on the amount exceeding that threshold. There’s a calculation to determine the total tax owed, not a straight 32% on your entire income.

Deadlines for income tax returns

April 30th is the deadline for filing and paying income tax in Poland for the year following the tax year.

Non-taxable minimum in Poland

Poland offers a tax-free threshold of PLN 30,000 (around €6,800) per year. This means if your total annual income falls below this amount, you generally won’t pay any income tax.

Deduction

In Poland, you can lower your income tax bill through:

• Deductions – Claim work expenses, social security contributions, charitable donations, and some loan interest.
• Tax Credits – Utilize childcare and medical expense credits.

Procedure for refunding overpayments

If tax office determine you overpaid, they will automatically issue a refund to the bank account you provided during filing. Processing times can vary, but it typically takes several weeks.

Getting tax number in Poland

The process for registering for a tax number (NIP – Numer Identyfikacji Podatkowej) in Poland depends on your situation:

• If you’re registered with CEIDG (Centralny Rejestr Gospodarki Narodowej) your NIP number will be automatically assigned to you. You won’t need to submit a separate application.
• If you’re not registered with CEIDG (e.g., freelancer, partnership) you need to submit the NIP-7 application form to your local tax office (Urząd Skarbowy).

Who can submit the NIP-7 form?

• Individuals conducting business activity outside of CEIDG registration (e.g., partnerships, freelancers).
• Individuals who don’t have a PESEL number (Polish national identification number) but need to pay taxes (e.g., employing a babysitter).

Penalty

Late Filing Fines:

• Up to 30 days l – around PLN 100 (approx. €22).
• More than 30 days late –  around   PLN 500 (approx. €110).

Excessively Late (Years of Non-Filing) –  tax authorities might impose a significant increase on your tax bill for the unfiled years. In rare situations, they could pursue legal action against you.