Poland’s nominal corporate income tax (CIT) rate of 19 percent has long been marketed as a competitive advantage, but the reality for the country’s largest businesses tells a different story. According to a report by Grant Thornton, published by „Rzeczpospolita,” the average effective tax rate for the biggest listed companies reached 33 percent in 2024.
The effective tax rate, which accounts for all real tax burdens beyond the nominal rate, is nearly 7 percentage points higher than the average of the last decade. The report shows a clear upward trend: the rate stood at 28 percent in 2022 and rose to 30 percent in 2023 before hitting 33 percent last year.
– The persistence of the average effective tax rate at 33 percent is not a temporary phenomenon but part of a long-term trend – said Grzegorz Szysz, partner at Grant Thornton’s advisory department. In his assessment, this trajectory sends a negative signal both to companies already operating in Poland and to potential foreign investors.
Hidden costs beyond the nominal rate
The nominal CIT rate alone does not reflect the full tax burden on enterprises. A separate report by MDDP and the Confederation Lewiatan indicates that the actual cost of taxation is shaped by the entire system of levies and administrative obligations imposed on businesses. Companies face a complex web of compliance requirements, minimum taxes, and additional contributions that drive up their real tax costs well beyond the headline figure.
Poland’s tax system has also received poor marks in international rankings. In the latest edition of the International Tax Competitiveness Index, Poland placed 35th out of 38 countries analyzed, dropping four positions compared to the previous edition. The index evaluates factors such as corporate tax rates, compliance costs, and the overall structure of the tax system.
International standing deteriorates
Only three countries scored lower than Poland: Colombia, Italy, and France. The decline in rankings underscores the growing gap between Poland’s statutory tax rates and the real-world experience of taxpayers. For investors comparing tax regimes across Europe, the gap between Poland’s advertised 19 percent CIT and the actual 33 percent effective rate may become a growing concern.
The data suggests that tax competitiveness cannot be assessed by nominal rates alone. As the effective tax burden continues to climb, Poland risks losing its appeal as a destination for business investment. The trend also raises questions about the transparency of the tax system and the predictability of costs for companies planning long-term operations in the country.
Źródło: WNP.PL, Fot. KPRM / Flickr.com / CC 4.0 BY-NC-ND
