Taxes in Poland 2026: company, VAT, income

One of the first questions a Turkish entrepreneur asks about a company in Poland is the tax burden. This article brings taxes in Poland together in one place: the company's corporate income tax, distributing profit to shareholders, VAT and the sole proprietor's income tax. Which structure you can set up is a separate question; we covered it in JDG or Sp. z o.o.. The Poland tax rates below are taken from official sources as of 2026. Rates and thresholds can change every year; your own calculation is done by our certified accountant partner.

Short answer: Taxes in Poland in 2026, in brief: a limited company (Sp. z o.o.) pays 19% corporate income tax on its profit; a small taxpayer and a company in its first year can apply 9% to income other than capital gains. A company may instead choose Estonian CIT (10% or 20%), taxed when profit is distributed. 19% is withheld from profit paid to shareholders; for a shareholder resident in Turkey the treaty caps this at 10% or 15%. The standard VAT rate is 23%. A sole proprietor chooses between the tax scale (12%/32%), the flat rate (19%) or a lump-sum tax on revenue.

Polish corporate income tax: how 19% and 9% differ

A Sp. z o.o. is subject to corporate income tax (CIT, podatek dochodowy od osób prawnych). Under Article 3 of the CIT Act, a company with its registered office or place of management in Poland is taxed in Poland on all of its income, wherever earned. Tax paid abroad is credited against Polish tax within the limits of the Act (Article 20). If the company is in fact managed from Turkey, both countries may treat it as resident; the treaty then leaves the outcome to agreement between the two tax administrations (treaty Article 4).

According to the Ministry of Finance's CIT rates and limits page, in 2026:

19% is the standard rate. Capital gains (zyski kapitałowe) are always taxed at 19%.
9% is the reduced rate for income other than capital gains, applied if two conditions are met together: the company's revenue in that tax year does not exceed EUR 2 million, and the company is a small taxpayer (mały podatnik) or is starting its business.

The 2026 złoty equivalents on the same page:

Small taxpayer threshold: prior-year sales revenue including VAT must not exceed EUR 2 million. At the NBP rate of 1 October 2025 (EUR 1 = PLN 4.2586), this is PLN 8,517,000 for 2026.
In-year revenue limit: calculated at the NBP rate on the first working day of the tax year. For a company whose tax year is the calendar year, at the rate of 2 January 2026 (EUR 1 = PLN 4.2156), it is PLN 8,431,000. Since 2026 the limit is prorated by the number of months in a tax year shorter or longer than 12 months.

A new company may apply 9% in the year it starts without meeting the small taxpayer condition (Article 19(1e)). However, the Act (Article 19(1a)) rules out 9% in the starting year and the following year if: the company was formed by merger or division (converting one company into another company does not trigger this bar); it arose from the transformation of a sole proprietorship or a partnership; or a previously run business or its assets worth more than EUR 10,000 were contributed to its capital. The Act does not look at the contributor's country: assets of your company or sole proprietorship in Turkey also count towards this limit; for assets contributed in 2026 the limit is PLN 43,000. The same rule also bars Estonian CIT for at least 24 months. If you plan to contribute the assets of an existing business as in-kind capital, discuss this before formation.

No returns are filed during the year; advances are paid. According to biznes.gov.pl, the monthly advance is paid by the 20th of the following month; small taxpayers and new companies may choose quarterly advances. The annual CIT-8 return is filed by the end of the third month after the tax year; for a company using the calendar year, that is 31 March.

Estonian CIT: tax when profit is distributed

Estonian CIT (estoński CIT; officially ryczałt od dochodów spółek, lump-sum tax on company income) is an alternative regime available since 2021. The core idea: while profit stays in the company, no tax arises; tax is paid when profit is distributed or on expenses the Act treats as hidden profit distribution. According to the Ministry's Estonian CIT page, in 2026 the rate is 10% for a small taxpayer or a company starting its business and 20% for others.

All conditions apply together:

The company is a Sp. z o.o., joint-stock, simple joint-stock, limited or limited joint-stock partnership, with its registered office or management in Poland.
All shareholders are natural persons; a shareholder living in Turkey does not break this condition. A structure with a company as a shareholder, for example a Sp. z o.o. owned by your company in Turkey, cannot choose this regime.
The company holds no shares in another company.
In the previous year, less than 50% of revenue came from passive sources such as interest, licences or receivables; for a company starting its business this condition is deemed met in the first year.
The company employs at least 3 full-time people who are not its shareholders, or meets the alternative pay condition in the Act. A small taxpayer may manage with 1 person in the first year; a company starting its business need not employ anyone in the first year, then adds at least 1 full-time person each year until it reaches 3.
Financial statements are not prepared under international accounting standards (IAS/IFRS).

The choice is made by filing a ZAW-RD notification with the tax office by the end of the first month of the first tax year. It lasts four years and renews automatically for another four unless you opt out. Taxpayers earning income in a special economic zone, financial institutions and companies in bankruptcy or liquidation cannot choose it. The annual return is CIT-8E.

This regime is not a promise of "less tax"; it is a choice about timing and bookkeeping discipline. The profit distribution plan, headcount and shareholder structure are assessed together; the calculation is done by our certified accountant partner.

Profit distribution: dividend tax and the Turkey–Poland treaty

Under classic CIT, profit is taxed twice: first in the company, then when distributed to shareholders. The tax withheld on dividends in Poland is 19%: Article 30a of the PIT Act applies if the shareholder is a natural person, Article 22 of the CIT Act if it is a company. The company paying the dividend withholds the tax on the day of payment.

If the shareholder is resident in Turkey, the Poland–Turkey double taxation treaty applies. It was signed on 3 November 1993, entered into force on 1 October 1996 and has applied since 1 January 1997; the Polish, English and Turkish texts are published in the Ministry of Finance's list of treaties. Under Article 10 of the treaty, if the beneficial owner of the dividend is resident in Turkey, the tax Poland charges may not exceed:

10%: if the recipient is a company (other than a partnership) holding directly at least 25% of the capital of the paying company.
15%: in all other cases; a shareholder who is a natural person falls here.

For the treaty rate to apply, the shareholder's certificate of residence (certyfikat rezydencji) must be given to the company; this condition is set by the Acts (PIT Article 30a(2), CIT Article 26(1)). Without the certificate the company withholds 19%. Our accountant partner determines which rate applies and handles the filings.

How the tax withheld in Poland is treated in your Turkish return is a matter of Turkish tax law. For that, consult the Turkish Revenue Administration (GİB) and your accountant in Turkey; we do not give advice on Turkish tax.

Poland VAT rate, exemption threshold and JPK_V7

According to the Ministry of Finance's VAT rates page, the VAT (podatek od towarów i usług) rates in Poland are:

23%: standard rate (since 1 January 2011).
8%: reduced rate; certain goods and services in Annex 3 to the VAT Act, part of catering services and certain construction work under social housing.
5%: reduced rate; certain foods, books and certain hygiene products in Annex 10 to the Act.
0%: exports outside the EU (with proof of exit), international transport and other transactions listed in the Act.

Which rate your product falls under depends on its classification; your accountant determines this.

Small business exemption (zwolnienie podmiotowe). According to the Ministry's exemption page, since 1 January 2026 the threshold is PLN 240,000 of annual sales (previously PLN 200,000). For a business starting during the year the threshold is prorated to the period of activity. The business must have its registered office in Poland and must not sell goods and services excluded from the exemption by the Act (Article 113(13)). The exemption ends from the transaction that exceeds the threshold. An exempt business charges no VAT on sales but also cannot deduct VAT on its purchases.

Registration and returns. To become an active VAT payer you register with the VAT-R form; for a Sp. z o.o., where this fits in the post-formation calendar is covered in our first 90 days article. Returns are filed as an electronic file called JPK_V7 (biznes.gov.pl):

Monthly (JPK_V7M): by the 25th of the following month; VAT is paid the same day.
Quarterly (JPK_V7K): available to small VAT taxpayers whose prior-year sales did not exceed EUR 2 million; not available in the first 12 months as an active VAT payer, and switching requires prior notice to the tax office (VAT Act Article 99(3)). The deadline is the 25th of the month after the quarter.

For the e-invoicing system that became mandatory in stages in 2026, see our KSeF article; for VAT on sales to consumers in the EU, see our OSS article.

Sole proprietor tax in Poland: three options for a JDG

The owner of a sole proprietorship (JDG, jednoosobowa działalność gospodarcza) pays personal income tax (PIT). Remember that a Turkish citizen can set up a JDG only with certain residence statuses. According to the Ministry's PIT rates page, in 2026 there are three forms:

Tax scale (skala podatkowa): 12% on income (revenue minus costs) up to PLN 120,000 and 32% above; a tax-reducing amount of PLN 3,600 is deducted from the calculated tax. It applies if no other form is chosen. Joint filing with a spouse and various reliefs are possible. Annual return: PIT-36.
Flat rate (podatek liniowy): 19% regardless of income. No joint filing with a spouse. If you provide to a former or current employer, as services, the same work you do or did under employment, you lose this form. Annual return: PIT-36L.
Lump-sum tax on recorded revenue (ryczałt od przychodów ewidencjonowanych): tax is charged on revenue without deducting costs. The rate depends on the activity and for services is generally set by the PKWiU (Polish classification of products and services) code. Examples: trade 3%; services with no other rate provided 8.5%; certain IT services such as software and systems management 12%; certain services such as advertising 15%; liberal professions 17%. To choose this form in 2026, revenue for 2025 must not exceed EUR 2 million (PLN 8,517,200). Annual return: PIT-28.

Deadline to choose or change. For the flat rate or the lump-sum tax, a statement is filed with the tax office or via CEIDG: by the 20th of the month following the month in which the first revenue of that year was earned; if the first revenue is earned in December, by the end of the year. The chosen form continues in later years; to change it, file in the new year within the same deadline. Which form suits you depends on your margin, your costs and the health contribution.

How the health contribution changes with the tax form

For a sole proprietorship, the health contribution (składka zdrowotna) depends on the tax form chosen. biznes.gov.pl and ZUS give the following for 2026:

Tax scale: 9% of income. The contribution paid cannot be deducted from tax or costs.
Flat rate: 4.9% of income. In 2026 the contribution paid can be booked as a cost or deducted from income up to PLN 14,100.
Minimum contribution: for the tax scale and flat rate, PLN 432.54 per month for February 2026–January 2027 (9% of the PLN 4,806 minimum wage).
Lump-sum tax: the contribution is fixed according to revenue earned since the start of the year. In 2026 the monthly amount is PLN 498.35 up to PLN 60,000; PLN 830.58 between PLN 60,000 and PLN 300,000; PLN 1,495.04 above PLN 300,000. 50% of the contribution paid is deducted from revenue.

Pension, disability and accident contributions are paid separately; we gave the 2026 amounts in our cost of living article. We covered the contribution position of the shareholder of a single-shareholder Sp. z o.o. in JDG or Sp. z o.o..

Filing and payment calendar: key dates

The annual pattern compiled from the official pages above:

The 20th of each month: CIT advance, and the JDG's PIT advance and lump-sum tax (with the quarterly option, the 20th of the month after the quarter). For December or the last quarter, the deadline is 20 January. A company under Estonian CIT pays no monthly advances; tax on distributed profit is due by the end of the third month of the following year.
The 25th of each month: JPK_V7M and VAT payment. With the quarterly option, 25 April, 25 July, 25 October and 25 January.
End of the third month after the tax year: CIT-8, or CIT-8E under Estonian CIT. For a calendar tax year, 31 March.
15 February–30 April: PIT-36, PIT-36L and PIT-28; for the year 2025 this window fell in 2026.

For VAT, if the last day falls on a weekend or public holiday, the deadline moves to the next working day. Registration deadlines right after formation (CRBR, NIP-8, VAT-R) are a separate calendar, covered in the first 90 days article.

Three notes for businesses run from Turkey

Place of taxation: a Polish company is taxed in Poland on its worldwide income. The Act also looks at where the company's day-to-day affairs are run on a regular basis (CIT Article 3(1a)); discuss where management will take place with the accountant and lawyer before formation.
Profit distribution: for payments to a shareholder in Turkey, the treaty rate applies with a certificate of residence; our accountant partner requests the certificate before payment.
The Turkish side: for tax consequences in Turkey, the Turkish Revenue Administration and your Turkish accountant are competent.

Frequently asked

How much corporate income tax does a limited company pay in Poland?

The standard rate is 19%. A company whose in-year revenue does not exceed EUR 2 million and which is a small taxpayer or in its first year applies 9% to income other than capital gains. For a company formed by merger, division, conversion of a sole proprietorship or in-kind capital above EUR 10,000, 9% is unavailable for the first two years. Under Estonian CIT, tax of 10% or 20% is paid when profit is distributed.

Can you issue invoices without VAT in Poland?

Yes. A business with its registered office in Poland whose annual sales in 2026 do not exceed PLN 240,000 can use the small business exemption, provided it does not sell goods and services excluded by the Act. For a business starting during the year the threshold is prorated. An exempt business charges no VAT but cannot deduct VAT on purchases; the exemption ends from the transaction that exceeds the threshold.

How much tax is withheld in Poland on profit paid to a shareholder living in Turkey?

Poland's basic rate is 19%. The Turkey–Poland treaty caps it: 10% for a corporate shareholder holding directly at least 25%, and 15% in other cases, including individual shareholders. For the reduced rate, the shareholder's certificate of residence must be given to the company. The tax outcome in Turkey is assessed by your Turkish accountant.

How we run it

In the first meeting we map out your structure, shareholders, sales channels and profit plan together. We set out in a written summary which tax questions apply to you and prepare the meeting with our certified accountant partner in Turkish. We keep the registration, filing and deadline calendar and explain letters from the tax office in Turkish. Tax calculation, returns and final tax advice rest with our certified accountant partner. No ready-made package prices: first your situation, then a written quote.

Sources

Last checked: 26 September 2026. This article is general information; your own case needs assessment by a licensed partner.

Tell us your situation or see the Start a company page.

This article is for information only and is not legal or tax advice. Basis: the Corporate Income Tax Act (15 February 1992; Articles 3, 19, 22, 26, 28j–28t), the Personal Income Tax Act (26 July 1991; Articles 27, 30a), the VAT Act (11 March 2004; Article 113), the Poland–Turkey double taxation treaty of 3 November 1993 (Article 10), Ministry of Finance (podatki.gov.pl), biznes.gov.pl and ZUS pages; as of September 2026. Rates, thresholds and contribution amounts can change every year; for your own case the last word rests with our certified accountant partner.

Author

Savaş Dere · Founder, CEO

Close to twenty years in software and e-commerce: web and application development, automation, digital products. At Senavia he runs process design, the technology infrastructure and integrations; a founder who has been through company formation and settling in Poland himself.

Meet the team

Taxes in Poland: company, VAT and income tax (2026 guide)