Poland’s largest listed companies paid an average effective tax rate of 33% in 2024, far exceeding the nominal CIT rate of 19%. The gap underscores the growing difference between statutory and actual fiscal burdens on businesses.
A report by Grant Thornton, cited by Rzeczpospolita, reveals that the effective tax burden for major Warsaw Stock Exchange firms reached 33% last year. This marks a significant rise from 28% in 2022 and 30% in 2023, and is nearly 7 percentage points above the ten-year average.
Grzegorz Szysz, partner at Grant Thornton’s tax advisory department, noted that the 33% level is not a one-off but a long-term trend. – This is a negative signal for entrepreneurs and investors – said Szysz. The nominal CIT rate of 19% does not capture the full fiscal weight, which includes various surcharges, minimum taxes, and other regulatory costs.
Additional burdens beyond nominal CIT
The effective rate is driven by mechanisms such as the minimum CIT introduced in recent years, the Polish Deal tax changes, and growing contributions to state funds. According to a separate analysis by MDDP and the Lewiatan Confederation, the real tax wedge in Poland has been rising steadily. Companies face not only income tax but also health insurance contributions for employees, social security, and sector-specific levies.
The report notes that the situation is not improving. The current effective rate is higher than in both 2022 and 2023, and the upward trend seems entrenched. This places additional pressure on corporate margins, especially in a high-inflation, high-interest-rate environment.
Poland slides in international rankings
Poland’s tax competitiveness is deteriorating. In the OECD’s International Tax Competitiveness Index, Poland ranked 35th out of 38 countries, dropping four places year-on-year. The index evaluates tax structures on efficiency, simplicity, and neutrality. Poland’s complex system with many special regimes and high effective rates contributes to its low score.
The gap between nominal and effective rates also undermines trust in the tax system. Businesses argue that unpredictability makes long-term planning difficult. Minister of Finance Andrzej Domański recently indicated awareness of the issue, but no concrete reform proposals have been announced yet.
Źródło: wnp.pl, Fot. PAP/Albert Zawada
