Expanding a brand to Europe is a major strategic milestone for any business. For Chinese companies seeking to establish a sustainable presence in the EU, Poland is quickly emerging as one of the most attractive and strategic entry points. Thanks to its geographical location, favorable business climate, and growing economy, Poland offers unique opportunities for companies aiming to scale their operations across the European market.
This blog explores the structure of Poland's customs duties (linked at the end of the article), outlines the key benefits of entering the Polish market, and demonstrates how a trusted partner like Mecyje can help your brand navigate every stage of expansion.
Poland's Tariff System: An Overview
As a member state of the European Union, Poland adheres to the EU's Common Customs Tariff (CCT). This means that goods imported into Poland from non-EU countries, including China, are subject to a standardized customs framework applicable throughout the entire EU. Understanding how these tariffs work is essential to avoiding delays, ensuring compliance, and maximizing profitability.
Key Components of the Polish Tariff System:
- Customs Duties – Based on the Harmonized System (HS) codes, which classify traded products, goods are assigned specific tariff rates. These vary depending on the type of product. For instance, apparel, electronics, machinery, and food items are taxed at different rates. These duties are typically calculated as a percentage of the product’s customs value.
You can also use the Variant tariff calculator.
- Value-Added Tax (VAT) – Poland applies a standard VAT rate of 23% on most imported goods. VAT is charged on the total value of the product, including customs duties and shipping costs. Certain categories, such as books and baby products, may qualify for reduced rates.
- Excise Duties – These apply only to specific categories such as alcoholic beverages, tobacco, and fuels. The rates and structures vary, often calculated based on quantity or alcohol content.
- Import Documentation and Compliance – Importers must provide accurate customs declarations, commercial invoices, certificates of origin, and conformity documents in line with EU standards. Products must also comply with the EU’s health, safety, labeling, and environmental regulations. For many Chinese businesses, navigating this regulatory landscape can be complex, which is why local expertise is invaluable.
How We Introduce Brands to the Polish Market
At Mecyje, we specialize in helping international brands succeed in Poland and beyond. Our end-to-end market entry services are designed to minimize risk and maximize growth.
Our Process Includes:
- In-Depth Market Research & Strategic Positioning We conduct extensive market analysis to understand your target audience, competitors, pricing strategies, and consumer trends. This allows us to design a tailored entry strategy that aligns with your business goals and market demands.
- Regulatory & Customs Compliance We assist you in navigating Polish and EU import regulations, including customs clearance procedures, VAT registration, and obtaining any required certificates. Our team ensures your products meet all legal and logistical requirements.
- Brand Localization & Consumer Adaptation Success in a new market requires cultural adaptation. We help localize your brand identity, packaging, and marketing to suit Polish consumer preferences and language. This includes everything from visual branding to product instructions.
- Go-to-Market Execution & Distribution Network Building We help you develop a powerful launch plan, identify local distributors, retail channels, and e-commerce partners. Whether it's B2B or B2C, we ensure your brand has a strong distribution network in place.
- Ongoing Growth Support & Brand Development Our work doesn't end after launch. We continuously support your brand with local PR, digital marketing, influencer partnerships, and performance tracking to ensure long-term success.
Source: nik.gov.pl
Benefits of Collaborating with a Local Agency in Poland
Establishing a presence in a foreign market comes with unique challenges—from cultural differences to regulatory complexities. That’s why working with a Poland-based agency like Mecyje provides a clear competitive advantage.
Advantages Include:
- Local Expertise & Insider Knowledge – We understand the local business culture, regulatory environment, and consumer psychology.
- Time and Cost Efficiency – Avoid costly mistakes and time-consuming missteps by having experts on the ground.
- Full-Service Capabilities – We offer everything from market entry strategy to operational setup and long-term brand building.
- Cultural & Linguistic Fluency – Our team ensures all communications, visuals, and campaigns are not only accurately translated but also culturally appropriate.
[FORMULARZ UMAWIANIA SIĘ NA ROZMOWĘ]
Poland’s Market Potential and Consumer Insights
Poland is one of the most dynamic economies in Europe and serves as a gateway to both Eastern and Western Europe. With a population exceeding 38 million and a rapidly growing consumer base, the country represents a substantial market for international brands.
Market Highlights:
- E-commerce Growth – Poland’s e-commerce market is booming, with over 80% of internet users making online purchases. Mobile shopping and fast delivery expectations are shaping consumer behavior.
- Tech-Savvy Population – Polish consumers are highly receptive to innovative, digital-first products.
- Growing Middle Class – With rising disposable incomes, more consumers are willing to pay a premium for quality, sustainability, and global brands.
The country’s strategic location also makes it a powerful logistics hub. Proximity to major European markets ensures reduced delivery times and lower transport costs. Find out how the proportion of imports in Poland and China has changed over the years. This trend is also noticeable in 2025.
Source: researchgate.net
Income and capital gains
Corporate income tax is levied at a rate of 19% (standard rate) or 9% (reduced rate for small taxpayers and new companies in the first year of business activity).
Withholding tax on cross border payments
The term “withholding tax” is used to describe income tax (both corporate and personal) withheld by remitters whose permanent establishment (place of residence, seat, or the so-called foreign establishment) is in the country in which the income arises.
20% is the withholding tax rate, is levied on income from interest, copyright or related rights, rights to inventive designs, trademarks and decorative designs, disclosing the secret of a recipe or production process, for the use or right to use an industrial device. The taxation may be diminished by application EU Directives or double taxation treaties.
19% is the withholding tax rate that covers payment of dividends, also in this case tax burden may be diminished by application of EU Directives or double taxation treaties.
From 2022, a ‘pay and refund’ mechanism (including withholding tax at standard rates of 19%/20%) has been introduced in relation to certain categories of payments to related parties exceeding PLN 2 million.
Corporate income tax – general information
Residence
A company is treated as resident if it has its legal seat or place of effective management in Poland.
Taxable income
Resident companies are taxable on their worldwide income, including capital gains. The taxable income is computed on the basis of the accounting profits and is adjusted for several items as described in the tax law. Revenues are divided into two sources – business activity and capital gains.
Tax period
Tax settlement period for a corporate income tax is tax year.
Standard tax year is 12 months, it can be similar to calendar year but also may be changed. Tax advances are paid throughout the year on a monthly or quarterly basis and reconciliated annually.
Tax returns and assessment
The taxpayer has to calculate and report revenues, tax deductible costs and tax due in the annual tax return (self-assessment). The deadline for filing the return is by the end of the third month following the end of the tax year. The filing deadline cannot be extended.
Tax advancement
Tax advances should be calculated and paid by the taxpayer on a monthly basis, quarterly in the first year, or if gross sales did not exceed EUR 2,000,000 in the previous year. Basis for calculation are current taxable revenues and tax-deductible costs, the taxpayer can choose to estimate the tax on the basis of tax year preceding the previous year (current year – 2).
Deductions
Generally, expenses incurred in connection to obtaining, ensuring and maintaining taxable income are fully deductible, unless they are listed as non-deductible items. Some items are deductible only up to a limit set by the law.
Carry forward of losses
Tax losses may be carried forward up to 5 tax years. During each year the company cannot utilize more than 50% of the loss. Loss from one source (business activity/capital gains) must be utilized within the same source. It is also possible to reduce the loss by an amount not exceeding PLN 5,000,000 at a time, the amount not deducted being settled in the remaining years of the five-year period, provided that the amount of the reduction in any of those years may not exceed 50% of the amount of the loss.
Dividend payments
Dividends paid out of profits are taxed at 19% rate. However, exemptions from the EU Parent-Subsidiary Directive apply.
Minimum tax
Starting from 2024, the minimum tax comes into effect.
The minimum tax will be paid by companies, tax capital groups and permanent establishments of foreign entrepreneurs, which in the tax year:
- Incur a loss from a source of income other than from capital gains, or
- Have a share of income from a source income other than from capital gains, of not more than 2%.
The tax rate is 10% and the tax base is the sum of:
- 1.5% of the value of the company’s income other than from capital gains
- costs of debt financing exceeding the value of 30% of the so-called EBITDA
- costs of intangible services and royalties.
With the alternative method, the rate is 3%. With this method, the tax base is the sum of income from the source of income other than capital gains earned by the taxpayer in the tax year.
Source: Endeavor Insight
Incentives
Special Economic Zones
Whole territory of Poland is considered as a Special Economic Zone, however, depending on the region intensity of public aid is different. General rule is that depending on the volume of investment, number of employees and additional local requirements, the taxpayer may benefit from tax exemption. Conditions are established for each taxpayer by a special agency responsible for Special Economic Zone which after application procedure issues a decision granting exemption in the particular case.
Research and Development (R&D)
Polish CIT act provides for special taxation regime encouraging investments into new technologies. Main tool is special R&D relief based on which taxpayer can additionally deduct expenses on Research and Development (R&D), including development of prototypes and pilot projects, demonstration, testing and validation of new or improved products, processes or services whose main purpose is to improve the technical Encoding Products.
The relief is available to all entrepreneurs engaged in R&D activities and allows for a deduction from the taxable base:
- 200% of personnel costs (for employees involved in research and development projects)
- 100% of other qualified costs.
Another tax benefit dedicated to the investor is so called IP BOX, according to this regulation income derived from intellectual property can be preferentially taxed with 5% tax rate.
There are also other tax benefits introduced for different economic sectors and various legal forms.
International aspects
Resident companies
Foreign income and capital gains
Resident companies are subject to tax on their worldwide income and capital gains. Taxable amount is generally calculated in the same way as in the case of domestic income.
Foreign losses – losses of foreign permanent establishment (calculated based on Polish tax rules) may be offset against domestic profits unless, on the basis of an applicable double tax treaty, the exemption method applies for double tax relief.
Dividend income paid by non-resident company
Dividends paid out of profits are taxed at tax rate of 19% unless rule implementing EU Parent-Subsidiary Directive applies.
Double taxation relief
No unilateral double taxation relief is provided. Double taxation is relieved only on the basis of tax treaties.
Non-resident companies
Taxable income
Non-resident companies are taxed only on income derived from Polish sources. They are generally taxed according to the rules applicable to residents. Income attributable to a Polish permanent establishment is generally taxed at 19% rate through a tax return (self-assessment).
Withholding tax
Generally, 19% withholding tax or tax security is levied (unless limited under a tax treaty). For interest and royalty payments EU Interest and Royalties Directive was implemented.
Dividend paid by resident companies to non-resident
Dividends paid out of profits are (unless rules implementing EU Parent-Subsidiary Directive apply) subject to a 19% final withholding tax, unless a reduced rate applies under a tax treaty.
Anti-avoidance rules
Thin capitalization
Taxpayers are required to exclude from their deductible expenses the cost of debt financing to the extent that the excess cost of debt financing exceeds either PLN 3 million or 30% of annual so-called EBITDA indicator. For its determination, an algorithm has been established:
[(P – Po) – (K – Am – Kfd)] × 30%, where:
P – summed up value of revenues from all sources subject to CIT;
Po – revenues of interest nature;
K – sum of tax-deductible costs without taking into account deductions to which one is entitled;
Am – depreciation write-offs included in the tax year to the tax deductible costs;
Kfd – debt financing costs included in the tax year to the tax deductible costs not included in the initial value of fixed assets and intangible assets, before taking into account deductions to which one is entitled.
Controlled foreign company
Companies having seat in tax haven, or in a country with no exchange of information, are treated as controlled foreign company.
The regulation refers also to companies established abroad deriving at least 33% of passive revenues like dividends, interests, copyrights, etc. In 2022, there was an expansion of the passive revenue catalogue to include intangible services provided, such as consulting, accounting, market research, legal, advertising, management and control, data processing, employee recruitment and acquisition services, and benefits of a similar nature.
Part of CFC income attributable to Polish parent is taxable in Poland. Under certain conditions foreign company may be excluded from CFC rules.
Tax avoidance clause
From 2016 every artificial action consisting in the performance of an act primarily in order to achieve a tax advantage is defined as tax avoidance.
In case of tax avoidance, authorities may reclassify given transaction or action and establish new tax consequences. Penal consequences may be applied to the person involved in the tax avoidance.
Real estate companies
A real estate company is a company having 50 % asset‘s value consisting of real estate located on the territory of the Republic of Poland and the value of such real estate exceeded PLN 10 mil.
Real estate companies are obliged:
- to submit information on their direct and indirect shareholders
- to act as an income taxpayer in case the seller of shares in this company is a non-resident and the subject of the sale are shares or stocks giving at least 5 % of votes in the company
- to appoint a tax representative when the company is not a tax resident in the EU or in another state belonging to the European Economic Area.
Real estate companies can only recognize depreciation up to the limit set for accounting purposes. Depreciation and amortization payments made on buildings and dwellings are excluded from tax expenses.
Report on the implementation of the tax strategy
Tax capital groups and taxpayers whose revenues exceed EUR 50 mil are obliged to prepare and publish on their website information on the tax strategy implemented for the previous tax year. This obligation must be fulfilled by the end of the twelfth month following the end of the tax year.
Limited partnership
Since January 1st, 2021, limited partnerships have lost their status of tax transparent companies and will obtain the status of CIT taxpayer. In practice, this change is tax-neutral for general partners, while
the income due to limited partners will be double taxed.
Transfer pricing
At the turn of 2022, Polish transfer pricing regulations were significantly revised. Positive aspects of these changes include some simplifications for businesses, as well as the elimination of the statement on the preparation of transfer pricing documentation as a separate document. There has also been a change in the regulations on transactions with tax havens, in particular, the repeal of the regulations on indirect haven transactions and an increase in the documentation thresholds for direct haven transactions. Transfer pricing documentation requirements generally follow the recommendations of the OECD Transfer Pricing Guidelines and the EU Code of Conduct on Transfer Pricing Documentation. In some cases, country-by-country reporting is used.
You can find more information about Transfer Pricing in our eBook: Transfer Pricing Overview for Poland
Optional settlement methods
Estonian CIT
From 2021, a new system of taxation of capital companies was introduced into the Polish legal system, the so-called ‘Estonian CIT’. Estonian CIT system enables changing the moment of tax payment. Currently, entities pay CIT on the income earned in a given tax year. In the Estonian CIT model, the tax will be paid only when the income is distributed, e.g., in the form of a dividend.
The law is addressed to capital companies that meet the following criteria:
- The scheme can be used by joint-stock companies, simple joint-stock companies, limited liability companies, limited partnerships, and joint-stock partnerships.
- The shareholders are exclusively natural persons.
- The company has no shares in other entities.
- The company employs, apart from the shareholders, at least three employees on the basis of an employment contract (or incurs monthly salary expenditures in the amount of at least three times the average monthly salary).
- Passive income does not exceed 50% operating income of all company revenues obtained from its activities in the previous tax year, calculated including the amount of VAT due.
The lump sum on income is paid of the payment of profit and in a different amount than the standard CIT. For small taxpayers and for taxpayers starting business activity on these principles, it is 10% of the tax base. In the case of other taxpayers, it is 20% of the tax base.
Small taxpayers
A small taxpayer is a taxpayer whose sales revenue (including the amount of VAT due) did not exceed EUR 2 mil in the previous tax year. Small taxpayers are entitled to preferential treatment of quarterly tax settlement, the right to apply 9% tax rate and one-off depreciation of certain fixed assets.
Tax investment fund
Taxpayers meeting the same conditions as in the Estonian CIT are entitled to create and make deductions to a special investment fund account. The made deduction may be recognized as a tax-deductible cost.
The condition for the deduction to be recognized as a tax-deductible cost is to make an investment expenditure. In practice, this solution enables immediate depreciation of fixed assets.
Holding Company
The purpose of introducing the institution of a holding company in the CIT Law is to encourage investors. The main condition for the use of this legal form will be that the holding company holds at least 10% of the shares in the subsidiary for a minimum of 2 year. The holding company should perform actual activities constituting business activity, including:
- to have staff, premises, and equipment to conduct this activity,
- function based on economic premises,
- show proportionality between the conducted activity and the resources possessed,
- enter into contracts and agreements that are economically feasible, economically justified and not manifestly contrary to the general economic interest of the entity.
The institution provides for tax preferences, such as a tax-free sale of shares and an exemption for 100% of dividends received.
Why Expanding Your Brand to Poland Pays Off
Many businesses underestimate Poland’s potential. But companies that expand or relocate operations here often discover a wealth of opportunities:
- Cost-Effective Market Entry – Compared to Western Europe, operational costs such as labor, office space, and warehousing are significantly lower in Poland.
- Access to the Entire EU Market – Setting up a branch in Poland opens access to the entire EU without the need for additional customs procedures.
- Business-Friendly Environment – Poland offers various incentives for foreign investors, including tax reliefs in Special Economic Zones (SEZs), EU-funded grants, and R&D support.
- Highly Educated Workforce – With a strong academic tradition and a multilingual population, Poland offers access to talented professionals in IT, marketing, engineering, and more.
Mecyje - Your Gateway to Growth in Poland
At Mecyje, we believe that entering a new market should be both strategic and inspiring. With a deep understanding of local regulations, consumer behavior, and branding dynamics, we act as your long-term growth partner—not just a service provider.
Words are not deeds, so we present our statistical file, which shows our work in relation to customers. See for yourself the results we achieve!
Whether you are an emerging startup or an established brand, our mission is to ensure that your products succeed in Poland and scale across Europe. From the first import declaration to your first sale — and every step beyond — Mecyje is by your side.
Looking to grow your business in Poland? Connect with our team at Mecyje to start building your European success story.
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