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/territory 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/territories 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/territories 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. UE citizens should obtain confirmation of stay in Poland.
In general, work permits are required for foreign individuals. As a rule, employees of EU countries/territories are exempt from the work permit requirement. Generally the procedure for obtaining this document requires involvement of the Polish company where work is performed.
All additional tax information is summarized by KPMG Tax M Michna Sp. K., the Polish member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Social Security System Act of 13 October 1998 (with amendments), Personal Income Tax Act of 26 July 1991 (with amendments). Inheritance and Gift Tax Act of 28 July 1983 (with amendments).
© 2019 KPMG Tax M Michna Sp.K, a Poland limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.