Taxation of international executives
Are there special residency considerations for short-term assignments?
Individuals who exceed 183 days presence per year in Poland are considered Polish tax residents (subject to the provisions of relevant double tax treaty provisions).
Are there special payroll considerations for short-term assignments?
No special considerations apply for short-term assignments.
What income will be taxed during short-term assignments?
During short-term assignments, (Polish non-resident) only income derived on Poland’s territory is subject to the tax unless treaty exemption under the employment income article can be applied.
Are there any additional considerations that should be considered before initiating a short-term assignment in Poland?
Individuals who are seconded to perform work in Poland and who become subject to Polish tax may be required to file a registration form to the relevant tax office.
Where the individual is non-resident in Poland and performs services to a Polish company on the basis of a foreign employment contract and is paid from out of Poland, then in certain cases the Polish company will need to file an information form to let the tax office know about this situation (ORD-W1).
Under the Seconded Persons Act, the home country/jurisdiction employer is required to file a notification to the Polish labor inspectorate concerning the new secondment by the first day that the employee works in Poland during the assignment.
Are there any formalities for foreigners who would like to stay in Poland and work in Poland?
Citizens of countries/jurisdictions with which Poland has signed agreements relating to visa-free travel may remain within the territory of Poland (without performing work) for periods of usually up to 3 months. However, citizens of certain countries/jurisdictions still require a visa in order to enter Poland.
If individual would like to stay longer usually a temporary residence permit or visa is required. EU citizens should obtain confirmation of stay in Poland.
In general, work permits are required for foreign individuals. As a rule, employees of EU countries/jurisdictions are exempt from the work permit requirement. Generally, the procedure for obtaining this document requires involvement of the Polish company where work is performed.
A global survey of income tax, social security tax rates and tax legislation impacting expatriate employees.
All information contained in this publication is summarized by KPMG Tax M.Michna sp.k., the Polish member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Polish Personal Income Tax Act of 26 July 1991 and subsequent amendments; the website of the federal fiscal administrations; the Polish Social Security System Act of 13 October 1998 (with amendments); the website of the Polish Social Security administration; the Polish Tax Ordinance Act of 29 August 1997 and the Inheritance and Gift Tax Act of 28 July 1983 (with amendments).
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