Taxes in Poland in 2025: What’s New and How to Prepare

Taxation is a vital part of both personal finance and business operations. In 2025, Poland has introduced several important changes in its tax system. Whether you’re an individual taxpayer or an entrepreneur, understanding these updates can help you plan smarter and optimize your tax obligations.

Key Taxation Systems in Poland

Poland offers various tax regimes, including PIT, CIT, flat tax, lump-sum tax (ryczałt), and VAT. Knowing the basics will help you navigate the financial landscape more confidently.

1. PIT – Personal Income Tax

• Progressive scale:

  • 12% for income up to PLN 120,000/year

  • 32% for income above that threshold

  • 35% introduced in 2025 for high-income earners exceeding PLN 1 million/year

• Deductions and allowances:

  • Basic tax relief

  • Benefits for children, education, healthcare, and charitable donations

  • New digital relief – for remote workers investing in equipment or software

2. Taxes for Entrepreneurs

• Flat tax – 19% fixed rate regardless of income

• Lump-sum tax (ryczałt) – between 3% and 17%, depending on business activity

• CIT – Corporate Income Tax:

  • 9% for businesses with turnover under €2 million

  • 19% standard rate

  • Estonian CIT model – tax paid only when profits are distributed to shareholders

Frequently Asked Questions

What is the VAT rate in 2025?

• Standard: 23%

• Reduced rates:

  • 8% – catering, passenger transport

  • 5% – basic groceries, printed books

  • 0% – export and intra-EU deliveries (WDT)

What has changed in 2025?

• New 35% PIT rate for top earners

• Special tax incentives for startups, AI companies, and the tech sector

• Expanded eligibility for Estonian CIT (now up to €10 million turnover)

• Green investment deductions (eco-friendly buildings, electric vehicles, etc.)

How to Legally Optimize Your Taxes in 2025

• R&D Tax Relief: Businesses investing in innovation and development can deduct these expenses

• Pension Accounts (IKE, IKZE): These allow individuals to reduce their taxable income

• Estonian CIT: Ideal for reinvestment-oriented companies

• Digital tax platforms: The e-Tax Office (e-Urząd Skarbowy) simplifies declarations and provides access to tax documents

Conclusion

Poland’s 2025 tax system combines traditional rules with modern solutions. With new deductions, digital tools, and more flexible tax regimes, taxpayers now have greater opportunities to manage their obligations efficiently and legally. Working with tax advisors or using official online platforms can ensure compliance and maximize savings.

Smart tax planning is an investment in your financial stability and long-term well-being.