Tax management

Tax Residence Certificates in Poland – What Expats and Businesses Need to Know If you earn income in Poland or receive payments from a Polish company, one document is crucial to avoid double taxation and ensure the correct application of tax treaties – the tax residence certificate. For foreign individuals and companies, this certificate proves where you are a tax resident and determines which country has the right to tax your income. Without it, Polish payers are often required to withhold tax at standard rates (19% or 20%), even if a tax treaty provides a lower rate or exemption.

No more artificial suspension of the limitation period by initiating criminal tax proceedings. In the latest version of the draft amendment to the Tax Ordinance, the Ministry of Finance has proposed removing the provisions allowing tax authorities to suspend the limitation period for tax liabilities solely on the basis of initiating proceedings for a fiscal offence or fiscal misdemeanour (Article 70 § 6(1) of the Tax Ordinance). For many years, this provision has enabled the tax administration to effectively extend the limitation period for tax liabilities, even in situations where there was no real need to initiate criminal proceedings.

On 18 September 2025, an act amending the Energy Law will come into force, which also includes an amendment to the CIT Act. In response to numerous interpretative disputes, the legislator clearly confirms that emission-free mergers of so-called ‘sister companies’ are tax neutral.

Withholding tax (WHT) in Poland has undergone significant changes in recent years. Since 1 January 2022, a new mechanism called “pay and refund” applies to certain cross-border payments. This system has major implications for foreign investors, expats, and multinational companies receiving dividends, interest, or royalties from Poland.

Moving to Poland for work or business can be a big step, but it comes with a powerful tax incentive. Under the Polish Return Tax Relief (ulga na powrót), individuals who become Polish tax residents after living abroad can enjoy up to PLN 85,528 of tax-free income each year for four consecutive years.That’s over PLN 342,000 of completely tax-free income. This benefit applies both to both employees and entrepreneurs, making it one of the most attractive relocation incentives in Europe.MartiniTax helps both expats and returning Polish citizens to qualify for the relief with all the steps necessary.

The Council of Ministers has adopted further draft laws included in the deregulation package. Among them are two bills providing for changes in income taxes and inheritance and gift tax. They were referred for the first reading at the Polish Parliament on May 21, 2025. According to the drafts, the new income tax regulations are to take effect on January 1, 2026, while the changes in inheritance and gift tax are to take effect 14 days after the date of publication in the Journal of Laws of the Republic of Poland.

On 4 April 2025, the Polish Parliament passed a law reducing health insurance contributions for entrepreneurs. This is due to come into effect on 1 January 2026. However, it should be noted that further proceedings are required for the law to be enacted.

On July 23, 2024, the Constitutional Tribunal (case no. K 13/20) reviewed an application by the National Council of Tax Advisors regarding the constitutionality of certain provisions within the Tax Ordinance and the Act on Tax Advisory Services in relation to the Polish Constitution. The case concerned the obligations imposed on tax advisors to disclose information on tax schemes and the associated breaches of professional secrecy.