Poland’s nominal corporate income tax (CIT) rate of 19% is far from reality for the country’s largest listed companies. According to a new report by Grant Thornton, the average effective tax rate (ETR) for blue-chip firms on the Warsaw Stock Exchange reached 33% in 2024.
The report, quoted by Rzeczpospolita, shows that the real tax burden is not only significantly higher than the statutory rate but also rising sharply. From 28% in 2022 and 30% in 2023, the ETR has climbed to 33% last year. That is almost 7 percentage points above the ten-year average for the same group of companies.
Grzegorz Szysz, partner at Grant Thornton’s tax advisory department, described the trend as persistent. – The fact that the average effective rate remains at 33% is not a one-time deviation, but a long-term trend – he said, calling it an unfavorable signal for both entrepreneurs and investors.
How the nominal rate hides the real cost
The gap between the statutory 19% and the actual 33% stems from a host of additional levies, limited deductions, and specific tax regulations that pile up on corporate balance sheets. A separate analysis by MDDP and the Lewiatan Confederation indicates that total fiscal pressure on businesses in Poland goes well beyond the headline CIT rate, encompassing contributions such as the minimum income tax, the so-called “exit tax,” and various sector-specific charges.
The Grant Thornton study covers 50 of the largest publicly traded firms. For many of them, the effective rate in 2024 exceeded 35%. Sectors like energy and finance were particularly affected, with some companies reporting even higher burdens due to additional windfall taxes and regulatory costs.
International rankings show a slide
Poland’s deteriorating tax competitiveness is reflected in the latest OECD International Tax Competitiveness Index. The country dropped to 35th place out of 38 nations, down four positions year-on-year. That ranking takes into account not only the overall tax level but also the complexity and predictability of the system.
According to experts cited by Rzeczpospolita, the gap between the nominal and effective rate undermines Poland’s appeal as an investment destination. While the government has been reluctant to raise the official CIT rate for fear of scaring away capital, the steady increase in effective taxation sends a different message to corporate decision-makers.
The trend is expected to continue as new EU tax directives and domestic regulations come into force. Without corrective measures, Polish businesses may face an even heavier fiscal load in the coming years.
Źródło: WNP.PL (Rzeczpospolita), Fot. PAP/Albert Zawada
