Determining Residency

The place of tax residence determines the tax liability. Persons having their tax residence in Poland pay tax on their overall – worldwide – income (unlimited tax liability). Persons not having their place of tax residence in Poland pay tax only on income sourced in Poland (limited tax liability), i.e. in general:

  • employment or freelance activity exercised in Poland,
  • business activity conducted in Poland,
  • property and other sources of income located in Poland.

The place and scope of taxation, as well as tax rates and other significant details are determined in accordance with the Polish regulations together with relevant bilateral double tax treaties and other international agreements.

Pursuant to the Polish tax provisions a resident is a person:

  • whose centre of personal or economic interests is located in Poland, or
  • who stays in Poland for more than 183 days in a year.

Determining Your tax residence is thus crucial for correct fulfillment of tax obligations and it is a first stage of our tax advisory services in Poland. Due to the fact that various factors can influence the status of a foreigner in Poland, TAKTAX has developed a residency test to verify and monitor the scope of tax liabilities.

After analysis of the residency test, Your status should be confirmed by obtaining a certificate of tax residence. This document – of a required form and content – should be issued by the tax authority of a relevant country (upon application).

Having determined the residence it is possible to establish the tax authority competent for Your tax settlements and apply for a tax identification number.

Confirmation of Your status allows for application of an appropriate bilateral treaty, or an international agreement concluded by Poland, and its provisions concerning avoidance of double taxation, exemptions and lower tax rates.
Your personal and economic status should be monitored in order to identify changes which may influence Your tax residence.