Excise duty, market fee, tax on civil law transactions, tax on means of transport, other taxes that may be paid by an entrepreneur
Practically every entrepreneur encounters income tax (PIT or CIT) and VAT while running a business. Some of them also settle the excise tax.
There are also other taxes that you may be obliged to pay while running your business. It is possible that a local fee will be payable on account of your business.
Other taxes that may occur in your business are:
- real estate tax
- tax on civil law transactions (PCC)
- tax on means of transport
- tonnage tax
- market fee
In addition, your business may involve the collection of excise duty.
Real estate tax
The object of real estate tax is land, buildings or parts thereof and, structures or parts thereof connected with conducting business activity. This tax is the income of the budgets of local governments and is the most important source of tax revenue for the budgets of municipalities.
The amount of tax rates varies depending on the municipality. Its amount is determined, by way of a resolution, by the municipal council, taking into account the upper limits of rates announced by the Minister of Finance by way of an announcement (rates for 2018).
The rates of this tax are of quota nature. The exception is the rate for buildings (i.e. to put it simply, structures that are not buildings), which is a percentage (2%).
Important! In the case of the object of taxation related to business activity, higher quota tax rates are applied. This means that if the entrepreneur indicated a residential unit as the seat of business activity - for the purposes of real estate tax this unit will be treated as a place of business activity, and the tax rate will be significantly increased.
Dates and methods of payment of real estate tax
In the case of natural persons, the tax is paid in instalments by 15 March, 15 May, 15 September and 15 November of a given year. The division into instalments does not apply to taxpayers whose tax amount does not exceed PLN 100. In such a situation, the tax is payable once within the time limit for payment of the first instalment.
In the case of other taxpayers, the tax is paid monthly for individual months in instalments proportional to the duration of the tax obligation - by the 15th day of each month, and for January - by 31 January.
Commercial property tax
Since 2018, the so-called minimum income tax on commercial property (e.g. shopping centre, department store, independent shop and boutique, office building) in the amount of 0.035% has been introduced. It applies to properties whose initial value exceeds PLN 10 million. The tax base is the income corresponding to the initial value of a fixed asset determined as at the first day of each month resulting from the records kept, less the amount of PLN 10 million. You can settle your tax obligation in two ways: pay the minimum tax, and when calculating the CIT advance payment (PIT) deduct this tax from the tax due to PIT (CIT) or pay an advance CIT (PIT) in full amount if the minimum tax is lower than the amount of the advance payment.
Tax on civil law transactions
The following are subject to tax on civil law transactions:
- civil law transactions
- company contracts and amendments thereto (articles of association, company statutes and amendments thereto)
- amendments to those contracts if they increase the taxable amount
- contracts of sale and exchange of property and property rights
- contracts for loans, money or goods specified according to their kind only
- donation agreement - in the part concerning taking over by the recipient of debts and burdens or obligations of the donor
- life contracts
- agreements on the administration of succession and agreements on the abolition of joint ownership, in the part relating to repayments or surcharges
- establishment of mortgage
- establishment of paid use, including improper use, and paid easement
- incorrect deposit agreement
- court rulings and settlements if they have the same legal effects as taxable civil law transactions
The taxable base shall be determined separately for each activity. The market value of property or property right is determined. This is done on the basis of average prices applied in trade in items of the same type and kind, taking into account their location, condition and degree of consumption.
The applicable tax rates are as follows:
- 2% of the sales contract:
- real estate
- movable goods
- perpetual usufruct rights
- on the ownership right to a cooperative dwelling
- on the cooperative right to commercial premises and the right to a single-family house and the right to premises in a small dwelling house resulting from the provisions of the cooperative law
- 1% from other property rights
- 2% of the loan agreement and the irregular deposit (subject to cases to which the rate of 20% applies)
- 0,5 % on the articles of association of partnership
There is a catalogue of taxpayers who are exempt from the tax on civil law transactions, their list is contained in Articles 8 and 9 of the Act.
Taxpayers are obliged to submit a declaration (PCC-3) concerning the tax on civil law transactions within 14 days from the date on which the tax obligation arises and to calculate and pay the tax within this period, except for cases when the tax is collected by the payer (notary) on civil law transactions performed in the form of a notarial deed. The declaration is submitted to the head of tax office.
General information on the tax on means of transport
Subject to taxation are:
- lorries with a maximum permissible weight of more than 3,5 tonnes and above
- tractors for semi-trailers and ballast weights designed to be used in conjunction with a semi-trailer or trailer with a maximum permissible laden mass of a combination of vehicles of 3,5 tonnes or more
- trailers and semi-trailers which, together with the motor vehicle, have a maximum permissible laden weight of 7 tonnes or more
Rate of tax
Tax rates are of a quota nature and are passed by the municipal council within the limits defined by the provisions of the Act on Local Taxes and Fees. The municipal council may differentiate rates, taking into account in particular: the environmental impact of the vehicle, the year of manufacture or the number of seats.
Check with your municipality the tax rate applicable in a given year. You will find information on the websites of municipalities.
Taxpayers are obliged to submit a declaration for the tax on means of transport to the competent tax authority:
- by 15 February of each tax year
- if the obligation arose after that date - within 14 days from the date of occurrence of the circumstances justifying the obligation.
The tonnage tax is levied on shipping companies engaged in the provision of services in international shipping using vessels of more than 100 GT in terms of:
- the carriage of cargo or passengers, except that in the case of services provided by: tugboat - at least 50% of the working time actually performed during the year is the carriage of cargo or passengers by sea; dredger - at least 50% of the working time actually performed during the year is the carriage of excavated material by sea.
- sea rescue
The municipal council may introduce, by way of a resolution, a market fee. It is charged on sales at market places.
Market fee shall not apply to sales made in buildings or parts thereof.
The rules of determination and collection as well as payment dates and the amount of fee rates shall be determined by way of a resolution of the municipal council, taking into account the upper limit of the rate announced by the Minister of Finance. The municipal council may introduce other exemptions from the market fee.
Excise duty is an indirect tax which is harmonised at European Union (EU) level. The harmonisation of indirect taxes guarantees the existence of a single market in the EU.
Excise duty on other products, e.g. passenger cars, dried tobacco, liquid for electronic cigarettes or innovative products is the responsibility of Member States, provided that these taxes cannot increase the formalities in trade related to crossing the border between Member States.
The European Union (EU) requires Member States to apply a minimum level of tax per product as regards the structure and rates of excise duty on excise goods. However, Member States may always set and apply higher excise duty rates based on their own fiscal policy.
Excise rates in Poland can be found on the tax portal
Poland, being a member of the European Union, is a part of the EU customs territory, the functioning of which is regulated by the EU Customs Code. Together with the remaining 27 EU countries, it forms the Customs Union, which is a single commercial area within which all goods move freely, regardless of whether they were produced in the EU or imported from outside the EU.
Services responsible for customs services in Poland
In Poland, the National Revenue Administration is responsible for customs services, among other things, for compliance with the law on import and export of goods. It also performs tasks resulting from the EU regulations regulating statistics on the trade in goods between the Member States of the European Community (INTRASTAT) and the trade in goods of the Member States of the European Union with other countries (EXTRASTAT).
Information on customs duties can be obtained by calling the National Revenue Information line at 22 330 03 30 (from mobile phones), 801 055 055 (from landlines), +48 22 330 03 30 (from abroad).
More detailed information on customs clearance in Poland and a catalogue of e-services can be found on the website of the Treasury and Customs Electronic Services Platform.