Tax residency
In accordance with the Polish income tax laws, persons who have their place of residence (individuals) or registered office, or place of management (companies) are subject to taxation in Poland on all their income, regardless of where it is earned. A place of residence is not only a place where a person resides most of the year, but also a place where he/she has a center of personal or economic interests. While a place of management, according to the regulations introduced by the Polish Deal, is understood as a place where the current affairs of this taxpayer are conducted in an organized and continuous manner, including on the basis of connections.
Both for individuals and companies, there are doubts arising as to when one can speak of the acquisition or loss of the Polish tax residency.
This is particularly important in the case of:
- Polish citizens who are currently living abroad (e.g. they are working or doing business there), but they have not completely lost ties with Poland (e.g. they have a family, real estate here);
- Ukrainian citizens who came to Poland in connection with the war;
- Polish citizens who own companies abroad (e.g. in the UK, Malta, Cyprus), being their shareholders or management board members.
Practice leader
Marzena Kidacka Ph.D.
Services
- Analysis whether Polish tax residency has been acquired or lost in the given factual circumstances;
- Determination of tax consequences connected with the acquisition, loss or no loss of Polish residency (potential tax arrears);
- Identification of the actions to be taken to minimize the risk of questioning the taxpayer’s assumed tax residency in the event of a tax audit.
