Current changes in tax legislation in Poland

Significant changes to tax legislation came into effect in Poland in January 2025. They affect everyone, from employees to entrepreneurs and foreign investors. Income limits have been updated, new tax incentives have been introduced, and electronic document management rules have been amended. These tax changes are already in effect—and it's important to understand how they affect you. Details are below.

According to the Polish Ministry of Finance, the changes affected over 17 million taxpayers. Up-to-date information can be found on the website: www.gov.pl/web/finanse.

Unsure how tax changes will impact your business in Poland? Contact our professional accountant for a consultation.

Key changes in taxes for individuals

The changes are aimed at increasing the availability of tax benefits and adjusting the tax scale. This applies to both employees and freelancers.

Increasing the tax-free minimum income

Starting in 2025, the tax-exempt minimum will be increased from 30,000 to 36,000 zlotys per year. This means that tax is only levied on amounts exceeding this limit.

Who benefits from this:

  • Employees with an income of up to 3,000 zlotys per month will not pay income tax at all.
  • For people with low or average salaries, their tax burden will be reduced.
  • Those who have unregistered low-income businesses will, in some cases, be able to legalize their income without paying taxes.
Year Non-taxable minimum Change
2024 30,000 zł
2025 36,000 zł +6,000 zł

 

Changes to the progressive tax scale

The 32% rate now applies to income over PLN 120,000 (instead of the previous PLN 100,000). Below this amount, the 12% rate applies.

Calculation example:

  • Income 80,000 zł → tax ≈ 5,280 zł (12%)
  • Income 130,000 zł → tax:

120,000 zł × 12% = 14,400 zł

10,000 zł × 32% = 3,200 zł

Total: 17,600 zł

Thus, with an income of over 120 thousand zlotys, the difference can reach several thousand zlotys.

New tax breaks and deductions

What has changed:

  • Young professionals – age increased to 27 years, exemption from PIT retained.
  • Working pensioners are entitled to an additional deduction of up to PLN 8,000 per year.
  • Families with children – the deduction amount for the second and third child has been increased.
  • Relocating to another city for work – you can deduct up to 3,000 zł of expenses.

All these innovations in tax legislation are aimed at supporting active and working citizens.

Changes in taxation of entrepreneurs

These changes are especially important for individual entrepreneurs, small businesses, and those operating on a B2B model.

New rules for the flat tax (ryczałt)

Starting in 2025, the list of activities eligible for the ryczałt (flat tax without regard to expenses) has been expanded. The following have been added:

  • IT consulting
  • Online courses
  • Design services

Rates have changed:

  • For some categories the rate has been reduced from 15% to 12%
  • For others - increased from 8.5% to 10%

Example:

  • Income: 100,000 zł
  • 2024 rate: 15% → tax 15,000 PLN
  • 2025 rate: 12% → tax 12,000 PLN

Changes to ZUS (social security contributions)

Since January 2025, ZUS has increased its calculation base. On average, the increase amounted to 12,3%.

For individual entrepreneurs with an income of 10,000 zł/month:

  • Before: ZUS contributions ≈ 1,431 zł
  • Now: ZUS contributions ≈ 1,608 zł

This could significantly impact the profitability of microbusinesses, especially those that don't take advantage of tax deductions.

New requirements for electronic reporting

From 1 July 2025, the electronic invoice (KSeF) will become mandatory for all VAT payers.

  • Applicable to: VAT-taxed companies, regardless of turnover
  • What you need: Use a compatible accounting program
  • Fines: from 1,000 to 5,000 PLN for each invoice not issued through KSeF

This is a key change in the tax system, and preparation for the transition must be made in advance.

How will the changes affect foreign entrepreneurs and investors?

If you are a foreigner and receive income in Poland, the changes for entrepreneurs will also affect you.

  • The criteria for tax residency have been clarified: 183 days of stay + center of vital interests.
  • Dividends and rent - the tax rate has been increased from 19% to 20%, unless there is a double taxation agreement.
  • When selling real estate in Poland, a tax is withheld PIT 10% — even in the absence of profit.

Example:

  • A foreigner rents out an apartment for 3,000 zł/month.
  • Before: tax 570 zł (19%)
  • Changed: tax 600 zł (20%)

This is a small difference, but with a large amount of real estate the amount increases.

Practical advice: what businesses and individuals should do

Here's what's important to do in the near future.

For individuals

  • Check if you qualify for new tax breaks
  • File an amended return if required.
  • Consider switching to B2B - with a high income it may be more profitable

For entrepreneurs

  • Conduct a tax audit: Check your tax form's compliance with the new rules
  • Prepare for the transition to KSeF – update your accounting software
  • Train your employees on how to work with electronic invoices.

"Many companies underestimate the transition to KSeF, but as of July, it's an obligation with real penalties," says Magdalena Nowak, an accountant from Warsaw.

Frequently Asked Questions (FAQ)

Do I need to change my tax form?

Depends on your income. For amounts up to PLN 100,000, a flat tax may be more advantageous. It's best to consult with us.

Is it mandatory to use KSeF if I am a small entrepreneur?

Yes, if you pay VAT. There will be no exceptions based on turnover.

When will the new rates come into effect?

From January 1, 2025. Electronic invoice – from July 1, 2025.

Unsure how tax changes will impact your business in Poland? Contact our professional accountant for a consultation.

Conclusion: What is important to remember

Major changes to Poland's tax legislation affect everyone. Income limits have been raised, new regulations for businesses have been introduced, social security contributions have increased, and electronic reporting is mandatory.

Entry deadlines:

  • Changes to the tax base: from January 1, 2025
  • Electronic document management: from July 1, 2025

Those who fail to prepare risk fines and loss of benefits. Consult a specialist to adapt without unnecessary expenses.

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03/08/2025

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