Capital Gains Tax in Poland – rules, rates & compliance

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Last updated: 23.01.2025

capital gains

Is there a Capital Gains Tax in Poland?

Poland does not have a separate capital gains tax. Instead, capital gains are taxed under the Corporate Income Tax (CIT) or Personal Income Tax (PIT) regulations. However, specific rules and distinctions apply to capital gains, setting them apart from operating income taxation.


What qualifies as Capital gains in Poland?

Income derived from capital gains and ongoing operating income are subject to CIT settlement in Poland separately.

Revenue types from capital gains include, among others:

  • revenues from participation in the profits of legal entities (such as dividend income, redemptions of shares, liquidation proceed etc);
  • revenue received from contributions in kind;
  • revenues received from the sale of shares, including voluntary redemptions;
  • revenues received from the sale of all rights and obligations in partnerships, and
  • revenues received from certain property rights (copyright, license, know-how).

Revenue types from capital gains include, among others: revenues from participation in the profits of legal entities (such as dividend income, redemptions of shares, liquidation proceed etc); revenue received from contributions in kind; revenues received from the sale of shares, including voluntary redemptions; revenues received from the sale of all rights and obligations in partnerships, and revenues received from certain property rights (copyright, license, know-how).

Costs incurred should be appropriately allocated to the relevant source of revenue and lower the income in a given tax year of the companies.


Tax rates for capital gains in Poland

Capital gains, including dividend income, are subject to a flat 19% tax rate. It is important to note that the preferential 9% CIT rate does not apply to capital gains.


Capital Gains – Settlement Principles

Companies subject to CIT must adhere to specific tax settlement rules regarding capital gains:

  1. Separate Calculation of Income
    • CIT taxpayers must calculate income from capital gains separately from operational (other) income.
  2. Aggregation for Final Taxation
    • While capital gains and operating income are calculated separately, they are ultimately aggregated for final taxation purposes under the same CIT framework.
  3. Loss Offset Restrictions
    • A loss from capital gains cannot be used to offset a profit from operational income, and vice versa.
    • Each category must be treated as a separate source for tax purposes.
  4. Tax Loss Carryforward Rules
    • A tax loss from capital gains can be carried forward for up to five consecutive tax years.
    • Losses can only be offset against future capital gains income from the same category.
    • In any given tax year, the taxpayer may offset up to 50% of the loss from a specific year or a maximum of PLN 5 million, whichever is lower.

Companies subject to CIT must adhere to specific tax settlement rules regarding capital gains: Separate Calculation of Income CIT taxpayers must calculate income from capital gains separately from operational (other) income. Aggregation for Final Taxation While capital gains and operating income are calculated separately, they are ultimately aggregated for final taxation purposes under the same CIT framework. Loss Offset Restrictions A loss from capital gains cannot be used to offset a profit from operational income, and vice versa. Each category must be treated as a separate source for tax purposes. Tax Loss Carryforward Rules A tax loss from capital gains can be carried forward for up to five consecutive tax years. Losses can only be offset against future capital gains income from the same category. In any given tax year, the taxpayer may offset up to 50% of the loss from a specific year or a maximum of PLN 5 million, whichever is lower.


Capital Gains – Documentation and Compliance

To ensure proper tax compliance, taxpayers must adhere to the following documentation rules:

  • Separate Record-Keeping: Taxpayers are required to maintain distinct records for capital gains and operating income to accurately track and report taxable income.
  • Transaction Documentation: All transactions related to capital gains must be properly documented to support their classification and ensure compliance with tax regulations.
  • Cost Allocation Justification: If shared costs are incurred across different income sources, taxpayers must provide a clear and justified allocation to distinguish between capital gains and operational income.

Proper documentation is essential for tax audits, ensuring compliance with Polish tax laws, and avoiding potential disputes with tax authorities.


faq - capital gains tax in Poland

FAQ – Capital Gains Tax in Poland

How is net capital gains taxation structured in Poland?

Net capital gains in Poland are taxed separately from operational income. The capital gains tax rate is a flat 19%, and short-term capital gains and long-term capital gains are subject to the same income tax rates. Losses from capital transactions cannot offset ordinary income but can be carried forward for up to five years.

Net capital gains in Poland are taxed separately from operational income. The capital gains tax rate is a flat 19%, and short-term capital gains and long-term capital gains are subject to the same income tax rates.

How can a capital gains tax calculator help in tax settlement?

A capital gains tax calculator helps determine taxable income from capital assets, including income earned from dividends, share sales, and sell investments. It accounts for itemized deductions, net capital loss, and applicable tax revenue rules, ensuring compliance with tax laws in Poland.

Are capital losses tax deductible in Poland?

Yes, capital losses can be deducted, but only against capital gains. The tax base allows tax loss harvesting, meaning losses can offset profits within the same category of capital transactions. The carryforward period is five years, with a limit of 50% per previous year or PLN 5 million annually.

Yes, capital losses can be deducted, but only against capital gains. The tax base allows tax loss harvesting, meaning losses can offset profits within the same category of capital transactions. The carryforward period is five years, with a limit of 50% per previous year or PLN 5 million annually.

How does taxation in Poland apply to worldwide income?

Poland follows a worldwide income taxation system, meaning tax residents must pay income tax on all earned income, including foreign investments. Tax residence is determined based on the individual’s main residence or spending more than 183 days in Poland in a tax year.

Poland follows a worldwide income taxation system, meaning tax residents must pay income tax on all earned income, including foreign investments. Tax residence is determined based on the individual’s main residence or spending more than 183 days in Poland in a tax year.

What documentation is required for paying tax on capital gains?

Taxpayers must maintain records of capital assets, capital gains, and business activities separately from operational income tax records. All capital transactions must be properly documented, including market valuations for tax office verification. Tax deductible expenses must be justified and allocated correctly.

Do lower rates or exemptions apply to capital gains in Poland?

The reduced rates of 9% CIT do not apply to capital gains tax; instead, a standard 19% tax rate is imposed. Certain exemptions may apply under legal persons’ structures or when meeting certain conditions for main residence sales. Value added tax (VAT) does not apply to capital gains but may affect related business activities.

The reduced rates of 9% CIT do not apply to capital gains tax; instead, a standard 19% tax rate is imposed.

How does personal income tax apply to capital gains in Poland?

Personal income tax in Poland generally applies to earned income from employment or own business, while capital gains tax is separate. Unlike employment contract income, which is subject to progressive tax rates, capital gains are taxed at a flat 19% rate. Certain capital transactions may qualify for tax-free treatment if specific exempt conditions are met.

Want to learn more about taxation in Poland?

Check out our expert guides on VAT, CIT, Withholding Tax, dividend tax, and other essential tax regulations to stay compliant and optimize your finance strategy in Poland.

Expert team leader DKP Legal Michał Dudkowiak
Contact our expert
Write an inquiry: [email protected]
check full info of team member: Michał Dudkowiak
Expert team leader DKP Legal
Contact our expert
Write an inquiry: [email protected]
check full info of team member: Michał Dudkowiak