Poland’s Senate has voted to restore a higher corporate tax rate for large companies and eliminate automatic yearly adjustments to personal income tax thresholds, according to RMF24 – Ekonomia. The upper house backed amendments to a major tax reform bill on Tuesday with 62 senators in favour, none against and 23 abstentions.
The amendments seek to reinstate an increase in CIT (corporate income tax) from 19 per cent to 22 per cent for companies with revenues exceeding €50 million. This provision was included in the government’s original proposal but was removed when the Sejm, Poland’s lower house, debated the bill. The Senate has now voted to put it back in.
In addition, the Senate amendments scrap the annual indexation of PIT (personal income tax) thresholds that had been inserted by the Sejm. If the Senate’s version is accepted, tax bands will not be automatically adjusted each year in line with inflation or wage growth.
New tax structure from 2027
The underlying legislation makes substantial changes to Poland’s income tax system. It raises the first tax threshold from 120,000 złoty to 130,000 złoty, with income below that level continuing to be taxed at 12 per cent. A new middle band is introduced for earnings between 130,000 and 150,000 złoty, which will be taxed at 24 per cent. Income above 150,000 złoty will face a 32 per cent rate.
The bill also tightens the rules on the flat-rate turnover tax, known as ryczałt. The revenue ceiling for eligibility to use this simplified tax regime will drop sharply from €2 million to €250,000. This change is expected to push more businesses onto standard accounting and tax arrangements.
Another amendment concerns the solidarity levy, a surcharge on high earners. The rate will rise from 4 per cent to 5 per cent on annual income exceeding one million złoty.
All these changes are scheduled to come into force on 1 January 2027, giving taxpayers and businesses more than a year to prepare.
What this means for Poles in the UK
If you are resident in the United Kingdom for tax purposes, these changes to Polish tax law will not directly affect your UK tax obligations. However, they may matter if you continue to earn income in Poland – for example, from rental property, freelance work or a business – or if you are considering returning to Poland in the future.
Polish tax residents with income above 130,000 złoty (roughly £24,500) will see a new, higher rate applied to earnings between that threshold and 150,000 złoty from 2027. Those earning above 150,000 złoty annually will pay 32 per cent on the excess. If you receive Polish income while living in the UK, check whether the UK–Poland double taxation treaty allows you to offset any Polish tax paid against your UK liability.
The sharp reduction in the ryczałt threshold, from €2 million to €250,000, is significant for self-employed individuals and small businesses. If you run a Polish-registered business remotely from the UK and your turnover exceeds the new limit, you will need to switch to standard bookkeeping and VAT accounting. Seek advice from a Polish accountant well before the January 2027 deadline to avoid penalties.
Finally, the proposed removal of automatic threshold indexation means that tax bands will remain frozen unless parliament votes to raise them. Over time, inflation can push more earners into higher brackets – a phenomenon known as fiscal drag. Anyone planning a return to Poland should factor in that real tax burdens may rise even if headline rates stay the same.