International Tax Competitiveness Index Report 2020 examines the competitiveness of OECD countries in terms of, inter alia, VAT. As it turns out, Poland is at the very end of the stake.
A high rate of taxation until 23%, rod 172 hours per year spent on VAT settlement and a very high degree of complexity of regulations, make Poland not a business friendly country in this respect. In the general ranking, where other categories of tax are also investigated, we 34 place, on 36 countries surveyed.
Strengths and weaknesses of the Polish tax system
The good news is that we're busy until 9 a place for corporate income tax. It is worth noting that, like Belgium, Italy, Portugal and Turkey, Poland has introduced a corporate capital allowance. The study of the area of individual taxes does not make us look bad either – here we are 11 place.
However, property taxes, whose system we have inefficient enough that we are ranked in a comparative ranking 31 place. The legislator could also look at the international tax system, because these taxes, inter alia on transfer prices, place us on 27 place.
A little more than a year ago.
Poland occupies 34. place in the International Tax Competitiveness Index 2020 – one place higher than in 2019 Some strengths of the Polish tax system:
Poland has a low average corporate tax rate of 19% (OECD average is 23.3%).
Polish labour taxes are generally flat, allowing the government to increase income from labour taxes.
Poland has a territorial tax system, including a network 85 tax agreements.
Some weaknesses of the Polish tax system:
Poland has many real estate taxes, with separate charges on real estate, assets, and financial transactions.
· Enterprises are severely limited in terms of net operating losses that they can use to reduce profits and cannot use losses to reduce future tax liabilities.
Companies can only reply 33.8% the cost of industrial buildings (according to current value), with the OECD average being 48.3%