Polish governance: There will be incentives to pay taxes in Poland

The relief for those returning from abroad is to cover persons who have lived outside Poland for 3 years.

– The incentive would allow for deducting from tax half of the tax paid by a taxpayer in Poland in the previous year. This deduction will be applicable for four years following the base year. According to the Ministry of Finance, the base year will be the year chosen by the taxpayer, in which he / she changed the tax residency and became a Polish resident, or the year following the change of tax residency – indicates Adam Allen, tax advisor, partner at Thedy & Partners.

The relief will also work with regard to social security contributions. Persons returning to Poland will be able to count on half of their retirement and disability insurance premiums being covered from the state budget. This preference will also be for 4-years.

– According to the plans presented by the Ministry of Finance, the regulations will also include a new solution addressed to individuals who will transfer their place of residence (tax residence) to Poland. It is to consist in a flat-rate taxation of income earned by these persons from sources located abroad. This is meant to be an incentive for individuals to move the place of residence to Poland while still receiving income from foreign sources – added Adam Allen.