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Poland, formally the Republic of Poland, is a Central European nation. It is organized into 16 administrative provinces known as voivodeships and has a total size of 312,696 km2 (120,733 sq mi). Poland is the fifth-most populated member state of the European Union, with a population of over 38 million people. Warsaw is Poland's capital and biggest city. Kraków, ód, Wrocaw, Pozna, Gdask, and Szczecin are other important cities.
Poland's landmass stretches from the Baltic Sea to the Sudeten and Carpathian Mountains in the south. Lithuania and Russia border the nation to the northeast, Belarus and Ukraine to the east, Slovakia and the Czech Republic to the south, and Germany to the west. Poland has maritime borders with Denmark and Sweden.
Human activity on Polish land dates back thousands of years. It became very diversified throughout the late antiquity era, with many civilizations and tribes settling on the huge Central European Plain. The Polans, on the other hand, ruled the area and gave Poland its name. The creation of Polish sovereignty may be traced back to 966, when the pagan monarch of a kingdom including modern-day Poland accepted Christianity and converted to Catholicism. The Kingdom of Poland was established in 1025 and signed the Union of Lublin in 1569, cementing its long-standing political relationship with Lithuania. The latter resulted in the formation of the Polish–Lithuanian Commonwealth, one of Europe's biggest and most populous states in the 16th and 17th centuries, with a distinctively liberal political system that adopted Europe's first modern constitution, the Constitution of 3 May 1791.
At the close of the 18th century, with the end of the affluent Polish Golden Age, the nation was partitioned by neighboring powers. With the Treaty of Versailles, it recovered its independence and re-established itself as a vital participant in European affairs. The German-Soviet invasion of Poland in September 1939 marked the start of World War II, which ended in the Holocaust and millions of Polish fatalities. In the midst of global Cold War tensions, the Polish People's Republic declared itself an immediate signatory of the Warsaw Pact as an Eastern Bloc member. The communist regime was abolished in the aftermath of the 1989 events, especially via the rise and contributions of the Solidarity movement, and Poland re-established itself as a democratic republic.
Poland is a developed market and a middle power, with the sixth biggest nominal GDP and fifth largest GDP in the European Union (PPP). It has exceptionally high living standards, security, and economic independence, as well as free university education and a universal health care system. The nation is home to 17 UNESCO World Heritage Sites, 15 of which are cultural in nature. Poland is a United Nations founding member, as well as a member of the World Trade Organization, NATO, and the European Union (including the Schengen Area).
If an employee has been with the company for fewer than ten years, the employer is entitled to 20 days off.
If the employee has worked with the company for ten years or longer, they are entitled to 26 days of vacation.
Poland recognizes thirteen public holidays.
For employees under the age of 50, the employer pays for up to 33 days in a calendar year.
Sick leave is paid by the Social Security Administration starting on the 34th day (ZUS)
Employer pays up to 14 days in a calendar year for employees who are 50 years old or older.
Sick leave is paid by the Social Security Office starting on the 15th day (ZUS).
If the sickness occurs during pregnancy or was caused by an accident on the route to or from work, sick leave is paid at 80% of the allowance basis, or 100% of the allowance basis.
ZUS pays for sick leave resulting from a workplace accident or the employee's ill kid or another ill relative.
Mothers are entitled to 20 weeks of maternity leave, with the option of taking up to 6 weeks off before giving birth. Regardless matter how long a mother has worked for the current company, she is entitled to maternity leave.
Parents are also entitled to 32 weeks of parental leave, which can be taken by either parent. The leaves are paid at a 100% rate for the first 26 weeks and 60% for the remaining weeks paid by the Social Security Institution (ZUS). Employees who take both maternity and parental leave will be paid an 80 percent stipend for the duration of their absence.
Fathers are entitled to two weeks of paid leave, which can be taken in whole or in two halves (7 days each). Paternity leave is available until the kid becomes two years old. The Social Security Administration pays the entire amount (ZUS).
Until the kid reaches the age of six, parents are entitled to 36 months of unpaid leave.
Child leave – 2 days or 16 hours to take care of a child that is 14 years old or less.
2 days leave for: wedding, employee’s child’s birth, and death of a spouse a child or a parent
1 day leave for: employee’s child’s wedding, or death of a sister, brother, or in-law.
Employment can be ended through mutual consent; a 'statement of will' by one of the parties with a period of notice (termination of an employment contract with notice); or the contract term expiring. The employment contract may be ended at any time by mutual consent.
The notice period for an employee on probation varies according to the length of the probationary period. If the probationary period is up to two weeks, there will be a three-day notice period. If the probationary period exceeds two weeks, a one-week notice will be provided. If the probationary period exceeds three months, a two-week notice will be given. Additionally, the notice period varies according to the length of employment for temporary or permanent employees. If the employee was employed for up to six months, the notice period will be two weeks. If the employee has been employed for more than six months but less than three years, the notice period is one month. If the employee has worked for the company for three years or more, the notice period will be three months.
The probation period must not be longer than three months in Pitcairn.
Employers must pay severance if they have at least 20 employees and the employee was terminated due to the employer's fault. Employees with less than two years of service are entitled to one month's severance pay. Employees with tenures of between two and eight years are entitled to two months' severance pay. Employees with more than eight years of service are entitled to three months' severance pay.
The standard workweek consists of forty hours spread over five days. Extended hours are permitted for up to one month if an urgent need exists, provided that the longer days are offset by shorter hours on other days.
Production enterprises that must operate continuously may have work weeks averaging 43 hours and workdays of up to 12 hours over a four-week period.
Overtime is typically only permitted in emergencies or when the employer has a specific, unique need that must be met. It is limited to a weekly maximum of eight hours and a maximum of 150 hours per year. Overtime is compensated at a percentage of the employee's standard rate and is paid if the employee works additional hours at night, on a Sunday or holiday, or on a day scheduled for leave.
The employee may elect to receive compensation in the form of time off rather than overtime pay. Executives and senior managers are entitled to overtime compensation for work performed on Sundays or holidays, but not for work exceeding 40 hours per week on average.
The current minimum wage in Poland is 2,800 PLN.
Poland has a universal healthcare system. After subtracting their social security payments, most workers contribute a proportion of their gross income to health insurance. The bulk of this sum is deducted from the employee's personal income tax obligation, with the remaining amount paid from the employee's net income.
Private health insurance is also widely accessible and widely used. As an employee benefit, many companies offer private health insurance.
The CIT is the sole corporate income tax. CIT rates are typically about 19%.
A reduced 9 percent CIT rate for small taxpayers' was implemented on January 1, 2019. Firms subject to CIT with sales of up to 1.2 million euros (EUR) in the given tax year, as well as companies beginning commercial activity in 2019, may utilize the 9 percent CIT rate under certain circumstances. It should be noted that the gross sales income level, which qualifies taxpayers to the status of small taxpayer,' will be raised from EUR 1.2 million to EUR 2 million on January 1, 2020.
Polish tax citizens must pay taxes on their global income. Non-residents are solely taxed on income earned in Poland. The ability of the tax authorities to tax a non-resident is further restricted if the non-country resident's of residency has signed a DTT with Poland. In this scenario, the Polish tax authorities are generally allowed to tax only the part of the non-income resident's that can be ascribed to a PE situated in Poland if the foreign tax resident earned such income in Poland. Exceptions apply to certain kinds of income, such as royalties, interest, dividends, and capital gains, which may exist in Poland even if there is no PE.
In Poland, the basic tax rates are 17 percent and 32 percent. If the tax base does not exceed PLN 85 528, the 17 percent rate is applied. If the tax base surpasses this amount, the 32 percent rate is applied. The tax is also lowered by a degressive tax-cutting amount.
Income from work, old-age pensions, and economic activity are among the kinds of income taxed in this way.
The following activities are subject to Polish VAT:
The following activities are subject to Polish VAT:
(1) Supplies of goods and services within the territory of Poland.
(2) Exports of goods outside the territory of the European Union.
(3) Imports of goods from countries that do not belong to the European Union.
(4) Intra-Community acquisitions of goods (imports from countries belonging to the European Union).
(5) Intra-Community supplies of goods (exports to the countries belonging to the European Union).
VAT rates are as follows: 23 percent (regular rate), 8%, 5%, 0%, and exemption. Except for those covered by specific VAT rules that allow for other rates or treatments, the normal 23 percent VAT rate typically applies to the delivery of all products and services.
Supplies covered at a reduced rate of 8% include, among other things, medicinal products and passenger transportation services, as well as supplies for the Social Housing Programme (no greater than 150 square metres).
Books and journals, unprocessed food, and basic meals are among the supplies covered by a 5% discount. Exports of products to nations outside the European Union are examples of zero-rated activity. Certain financial, insurance, and educational services are examples of VAT-exempt commodities.
To work in Poland as a non-EU resident, you must first get a work permit. The work permit is only valid for the position at the time of application; if the employee changes jobs, a new application must be submitted. A work permit has a three-year validity period.
There are five main categories of work visas in Poland.
Type A - If you find work via an employment contract or a civil law contract with an employer who has a registered office in Poland. This is the most common kind of work permit.
Type B - This work visa is eligible if you are a board member and plan to stay in Poland for more than six months in the next 12 months.
Type C - You may apply for this work permit if a foreign employer sends you to Poland for more than 30 days in a calendar year to work for the foreign company's subsidiary or branch office in the nation.
Type D - You are qualified for this visa if a foreign company sends you to work temporarily in export services. The foreign employer must not have its own branch or subsidiary in Poland.
Type E - You may apply for this visa if you do work-related duties that do not fit into any of the four categories listed above.
In Poland, employment contracts must be in writing and signed no later than the day the person starts work. If the employee does not understand Polish, the employer must give a translation in a language that the employee understands.
At the very least, the employment contract must state:
The names of the parties
The contract type (indefinite, fixed term, or trial period)
The contract's execution date
The work environment
A description of the nature of the work
Employment contracts are typically for an indefinite, set, or trial time. A contract for a trial term may not be more than three months and may not be renewed unless in extremely particular circumstances. Fixed-term contracts may be for a certain period of time or until particular circumstances are met, such as the return of another employee after a brief absence or the fulfillment of specified duties. If a fixed-term contract is for a specific amount of time, it may be renewed no more than twice, and the total duration of all contracts cannot exceed 33 months. When a fixed-term contract is renewed for the third time, it immediately turns to an indefinite-term contract.
To incorporate in Poland, you'll need to examine a few issues that may affect the structure of your subsidiary. Business considerations such as your sector and the nationality of your headquarters might have an impact on how your company runs.
Location is important in every nation. Companies in the Midwest, for example, may have different expenses than those in New York City. The same is true for several cities and areas in Poland. If you are unfamiliar with the region, it is a good idea to consult with other experts or a legal counsel before deciding where to put your Poland headquarters.
Keep in mind that Poland lacks a solid infrastructure system, which might raise the price of establishing a Poland subsidiary in some locations. In general, urban regions have greater internet connectivity than less populous areas, which might influence where you choose to incorporate.
A limited liability corporation is the most prevalent kind of Polish subsidiary. To establish a Poland limited liability subsidiary, you need do the following:
1. Execute the articles of incorporation with the assistance of an attorney.
2. Open a bank account in Poland.
3. Transfer the whole share capital of the firm to the new bank account.
4. Apply to the Polish Court Register to register your corporation.
5. Establish a management board.
6. Incorporate the corporation in the commercial registry.
For bigger company prospects, limited liability firms are the most preferred. If you set up your Poland subsidiary in this manner, your shareholders are solely responsible to the extent of their share capital. A minimum of 50,000 PLN share capital is required to create a limited liability company in Poland, according to subsidiary regulations. A statistical number (REGON), a tax identification number (NIP), and VAT payment registration are also required.