Informacje dla Expatów
Delegating of the employees - General Info
On 18th June, 2016 the Act on delegating of employees as part of providing services, entered into force (Journal of Laws 2016, item 868). The Act is a complex regulation which specifies certain obligations of an employer who delegates an employee to Poland. The obligations are as follows:
1. Appointment of a person authorized to contact the National Labour Inspectorate (Państwowa Inspekcja Pracy, further referred as PIP), in sending and receiving documents and notifications. Such person should stay on the territory of Poland during the employees delegation.
2. The person authorized for contacting PIP must on its request, provide his/ her name, surname, address, telephone number, business e-mail. On the PIP’s request such a person shall stay available in Poland in case of PIP’s control procedures.
3. The employer delegating an employee to Poland is obligated to provide PIP with a statement (not later than on the day of starting services) including the following data:
a) Identification data of the employer: name, address, telephone number, e-mail. In case of the employer being a natural person – address, telephone number, NIP Number (Tax Identification Number) or other number given for tax purposes;
b) Expected number of employees delegated to Poland and their personal data (name, surname, date of birth, nationality);
c) Expected date of the beginning and ending the delegation of employees in Poland;
d) Addresses of workplaces of employees delegated to Poland;
e) The character of services justifying the delegation of employees;
f) Personal data of the person appointed for contacting, including name, surname, address, telephone number, e-mail;
g) The place of storage of the documents concerning the delegated employee.
4. The employer shall notify PIP of any change in information included in the statement not later than within 7 working days from the date of the change (notice shall be submitted in Polish or English language in writing, on paper or electronically). Such a statement shall enable PIP to perform the inspection control at the workplace.
5. The employer delegating the employee is required to keep documents in Poland (in electronic or paper form) relating to employment:
a) Copy of the employment contract or other document certifying the conditions of employment;
b) Documentation confirming the working time of the delegated employee in terms of start and end of work as well as the number of hours during the day;
c) Documents confirming the amount of salary of the employee posted to Poland, together with the amount of deductions made in accordance with applicable law and the proof of payment of employee salaries.
6. The employer, at the request of the PIP, is obliged to provide during the employees assignment posting documents (related to employment relationship) and their translation into Polish, not later than within 5 working days of receipt of the request.
7. During the period of 2 years after the end of the employees delegation to Poland, at the request of PIP, the employer provides the documents related to his employment contract, not later than within15 working days from the date of receipt of the request. Translation of the documents may be also requested by PIP.
8. The employer is obliged to provide either documents or its copies in paper of electronic form.
EU imigration - General Info
Please note that the European Union (EU) citizen may enter the territory of Poland on the basis of a valid travel document or another document confirming his/her identity and citizenship. An EU citizen may reside on the territory of Poland for up to three months without a need to register. During that time, the EU citizen is required to have a valid travel document or another valid document confirming his/her identity and citizenship. A family member who is not an EU citizen is required to have a valid travel document and a visa. An EU citizen may remain in Poland for a period longer than three months if receives residence card for family member of EU citizen.
An EU citizen should have funds sufficient to support oneself and one’s family in Poland and should be included to health insurance in Poland.
Any EU citizen who remains in the territory of Poland for more than three months is required to register his/her residence.
The application procedure looks as follows:
- After all documents are completed ExpaTax and the assignee need to pay the visit to the immigration office – the authorities always want to see the EU citizen who applies for the card,
- At the immigration office the person will grant the power of attorney (for ExpaTax employee who will accompany the assignee) at the presence of the immigration clerk,
- The ExpaTax’s employee will pick up the EU residency card, make another registration in the local district (address registration) and will give all this back to the person.
Please note that the EU citizen registration is done at once but the confirmation of registration at the Polish Territory is issued from 21 to up to 30 days (card).
Non-EU - General Info
Our services embrace the immigration and work permit aspects of the move to Poland of non-EU employees, including application for the relevant work permit and/or residency permit.
1) General information about work permits and residence permits in Poland
Regulations on employing foreigners in Poland are specified in the Act on promoting employment and labour market institutions of 20 April 2004 (consolidated text: Dz.U. [Journal of Laws] No. 69 Item 415, as amended) and in executive orders. Regulations about obtaining residence permits in Poland are specified in the Aliens Act of 12 December 2013 (consolidates text: Dz.U. [Journal of Laws] dated from 2013, Item 1650 and Regulation of Ministry of Internal Affairs dated from 28 April 2014, Dz.U. [Journal of Laws] dated from 2014, Item 566.
Each foreigner who, pursuant to regulations, is not released from the obligation to have a permit to work in Poland and who wishes to become employed in Poland must have an appropriate permit. An employer is a party to administrative proceedings which means that the person who submits application for issuing such permit is the employer wishing to employ a foreigner and not a foreigner himself/herself. A filled in application for a work permit for a foreigner together with required documents should be submitted at least 30 days before the planned date of employment.
Types of the work permits:
As per regulation of the Minister of Labour and Social Policy of 29 January 2009 on issue of work permit for a foreigner (Dz.U. [Journal of Laws] of 2009 No. 16 Item 84) there are 5 types of permits for foreigners for work in the Republic of Poland (type A, type B, type C, type D, type E). The work permit is required (Art. 88 of the Act on promoting employment and labour market institutions), if a foreigner:
a. performs work in the Republic of Poland pursuant to a contract with an employer whose registered office, place of residence, branch, facility or other form of business is located in the Republic of Poland (type A) – local (employment or civil) contract
b. stays in the Republic of Poland for a period the total length of which exceeds 6 months in 12 consecutive months for the reason of performing a function in the management board of a legal person which has been entered into the register of entrepreneurs or which is a company in organization (type B) – appointment to the management board
c. performs work for a foreign employer and is delegated for a period exceeding 30 days in a calendar year to a foreign entity’s branch or facility located in the Republic of Poland, its subsidiary or affiliate bound with such foreign entity by a long-term cooperation contract (type C) – assignment to Poland
d. performs work for a foreign employer without a branch, facility or other form of business in the Republic of Poland and is delegated to the Republic of Poland for the purpose of execution of a service of temporary and casual nature (export service) (type D) – assignment to Poland
e. performs work for a foreign employer and is delegated to the Republic of Poland for a period exceeding 30 days within the next 6 months for the purpose other than that indicated in points 2-4 (type E) – assignment to Poland
2) General information about entry conditions for third-country nationals under visa obligation.
Third-country nationals are allowed to enter and stay in Poland, if they are in a possession of one of the following titles:
a) uniform short-stay Schengen visa (C)
b) Polish long-stay national visa (D)
c) Polish residence permit / residence card
d) residence permit or national long-stay visa issued by another Schengen State
e) EU Blue Card for high qualified employees.
Please note that the business visa does not grant right to work in Poland. This document allows short stay in Poland related with business activity of the subject executed in the country of origin (participation in trade fairs, workshops, conferences etc.).
Global mobility and settling - General Info
Our service relates to the delivery of Settling-in Services explained as:
1. Orientation Tour:
If requested, the vendor should suggest an orientation tour of the office and surrounding residential areas to the employee. This can be done as a stand-alone service, or in conjunction with home search and/or school search.
The orientation tour will involve the vendor collecting the employee from their hotel / office and taking them (and their family) on a guided tour of the area, pointing out important landmarks and highlighting local issues to be aware of. The tour should last a maximum of 8 hours and should focus on the individual needs of the relocating family.
2. Accommodation Support:
Support typically involves a discussion with the employee to understand housing preferences, identifying suitable properties that meet their needs, and are in line with the budget. ExpaTax also accompanies the employee (and family) on a home search tour to visit the properties.
ExpaTax also meets the employee on their move-in date, to sign-off the inventory check-in report, and hand over the keys. We also handle ad-hoc issues with accommodation throughout the period of the tenancy.
3. Settling-In Services:
Refers to the services to support the integration of the relocating family, and will partially be carried out once the employee has found a property. Services include opening a bank account and liaising with the utility companies to set up services in their property. These include gas, water, electricity, internet / phone connection.
4. Car registration:
Refers to the service support in making registration of private car in local communication department, assistance in arranging technical check-up of the car and obtaining relevant car insurances.
5. School search:
Assistance provided to employees transferring on an international assignment, who have children of schooling age. Support includes providing details of appropriate international schools, setting up appointments to visit the schools and may also include accompanied visits to the schools.
Tax and social security - General Info
Personal income tax
Please be informed that under Polish law provisions, there are different rules regarding reporting obligations in case of the on-shore salary payments and off-shore salary payments.
The specificity of the Polish regulation is that there is no “shadow payroll concept”, i.e. Polish entity is obliged to run the payroll for the payments that are made under the Polish employment contracts and it is not responsible for reporting the off-shore salary payments made under foreign employment contracts. The distinction in reporting obligations depends on the fact whether the salary is paid under Polish (i.e. concluded with Polish entity) or foreign employment contract (concluded with foreign entity).
In case of a foreign employment contract, the individuals are obliged to pay monthly tax advances on their foreign employment income. As the foreign employer is not regarded as tax remitter from Polish law perspective, it is not obliged to prepare Polish payslips for the expatriates’ off-shore income as it is the individual personal responsibility to declare their foreign off-shore income. The Polish receiving employer has no reporting obligations.
The employment income should be reported to and taxed in Poland on a monthly basis. Tax advances are due by the 20th day of the month following the month in which the income was received. As a rule, the monthly tax advances are paid at the rate of 18% while the year-end final reconciliation is made according to the progressive rates up to 32%.
The rates of tax applicable to the employment income are progressive (18% and 32%) and apply to all residents and non-residents (but limited for non-residents to Polish-source income):
|PLN 85 528,00||18% minus amount decreasing the tax PLN 556,02|
|PLN 85 528,00||PLN 14 839,02 + 32% of surplus over PLN 85 528,00|
If the employment remuneration is provided under a Polish employment contract, the Polish employer is responsible for withholding and filing taxes on behalf of the employee on a monthly basis. The Polish employment income is subject to monthly tax withholding.
An annual tax return has to be submitted by April 30 following the end of the tax year regardless of the fact whether the taxpayers were employed by a Polish or an offshore company.
The tax return is submitted based on self-assessment unless that can be done by the employer under specific circumstances.
Any individual being a resident of Poland and having the status of the Polish tax resident is subject to unlimited tax liability in Poland and is obliged to reconcile in Poland all of their worldwide income regardless of the source of income, unless the income received by a person is exempt from tax in Poland according to the Polish law and/or relevant treaty on avoidance of double taxation.
In turn the person, that has not the place of residence on the Polish territory, and being Polish tax non-resident, has in Poland limited tax liability and is subject to taxation in Poland only on income from sources located in Poland including work performed on the Polish territory irrespective of the place of the income payment (off-shore or on-shore).
Social security – EU and Polish rules
EU – coordination of social security systems within the European Union is regulated by the EU Regulation No 883/2004 of the European Parliament and of the council on the coordination of social security systems (further as” EU Regulation”). The EU Regulation coordinates both the social security and health insurance systems in the EU Member states (further as “Member States“). The EU Regulation set rules to determine which member state’s social security legislation applies to persons when they are in a situation involving more than one Member State.
In a situation involving more than one Member State is when person performed employment activities in Another Member State and moved for the work to Poland, when a person has two employers or performs employment activities in two or more Member States. The determination of which social security legislation applies to a person is important for the payment of social security (and health insurance) contributions, for entitlement to benefits and the acquisition of future pension rights.
The basic principles of the EU coordination rules are as follows:
- When moving within the EU, a person is always insured under the legislation of one single member state.
- Generally, if person is active, would be subject to the legislation of the country (member state) where work is performed.
- The principle of equal treatment ensures that person has the same rights and obligations as nationals of the country where is insured.
- When necessary, periods of insurance acquired in other EU countries can be taken into account towards the award of a benefit (“„aggregation of periods“”), which means that periods of insurance, employment, or residence completed under the legislation of any other Member State are considered as though they were periods completed under the legislation of the member state which it applies.
- Persons to whom EU Regulation applies shall enjoy the same benefits and be subject to the same obligations under the legislation of any Member State as the nationals thereof.
For employees from EU country who have concluded local employment contract and assignment contract in home country and performs employment activities in another member state (Poland) there exists a possibility to apply for an exemption from general rules based on a request for exemption called A1.
The A1 application shall be made under the provisions of Article 12.1 (assignment up to 24 months) or Article 16 (special case: for example, longer period of assignment) of Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems depending of the length of the assignment to Poland.
In case the A1 is granted the employees will continue to be subject to the home country social security system and will be exempt from the Polish system.
In case there is no A1 applied or applied but not granted, registration for the purpose of Polish social security of individuals remunerated for performance of their Polish duties by the foreign employer located in the EU country may be realized in accordance to one of the below procedures:
a) the foreign employer registers itself and the employee for obligatory social security in Poland – the foreign employer becomes the Polish employer and remitter for the social security purposes.
b) the foreign employee registers as a Polish social security remitter – on the basis of the agreement concluded between the foreign (EU) employer and the individual,
As a general rule all “employees” performing work on the Polish territory are subject to the Polish social security system, unless:
- they are the EU citizens subject to the social security system in another EU member State and they are exempt from social security in Poland under A1 or they are non-EU citizens subject to the social security system in their home-country that has a Totalization Agreement signed with Poland and they are exempt from the obligatory system in Poland under the relevant Certificate of Coverage (COC),
- they are either EU or non-EU citizens employed by non-EU employer (that does not a Totalization Agreement with Poland).
In addition there is special exemption under the law under which:
- members of the management board performing their function under the relevant resolution of the competitive body of the company,
- persons performing “services” under the “personal service contract” who are at the same time employed under the employment contract by different employer – in such case only health insurance contribution is due.
In regards remuneration received under Polish employment, Polish entity is obliged to calculate and withhold monthly social security and healthcare contributions to Polish social security system due on employment contract.
Please note that Polish social security/health insurance contributions due on employee are as follows:
|Specification||% of total contribution||% of contribution financed by the payer (the employer)||% of contribution financed by the insured person (the employee)|
|Social Insurance– Old-age pension
– disability pension
– work accident
from 0,67 to 3,33
0,67 – 3,33
|Fund of Guaranteed Employee Benefits||0,10||0,10||0,00|
- Pension and disability fund – capped,
- Sick leave insurance contribution – not capped, rate at 2,45% on the total gross income (after statutory cost of income deduction), the contribution reduces the taxable income but cannot be deducted from the income that is tax exempt,
- Health insurance contribution – not capped, rate at 9% on the total gross income after social security contributions deduction, 7, 75% is tax deductible but only from the tax due on non-tax-exempt income.
- Polish health insurance (HI)
- The person subject to the Polish social security system is also subject to the compulsory health insurance in Poland. The health insurance (HI) has been calculated as 9% of the gross income decreased by social security contributions. Further the part of the HI (amounting to 7,75% of the base) is deducted from tax, if the person is subject to tax in Poland. The amount of 1,25% is paid by the individual from their net income.
Taxable employment income – definition
The employment income subject to social security in Poland is defined as income subject to personal income tax.
Please note that according to the provisions of Polish tax law, money, valuables, and all kind of benefits, including benefits in cash and benefits in kind, received by an individual should be treated as taxable income.
Moreover, the term “employment income” includes all income arising from employment contract including remuneration, bonuses of all kind and benefits-in-kind (i.e. housing, car for private purposes and home flights). Thus, most benefits provided by employers along with or in place of salary are taxable as regular employment income.
All income received by the employee/assignee under their assignment conditions (Polish employment contract, assignment contract, home-country contract) shall be treated as taxable (as a rule even exempt under the relevant tax rules from tax in Poland) and thus subject to tax AND social security/health insurance contributions calculated for the both – the employee and the employer (unless exempt).
The person subject to the Polish social security system is also subject to the compulsory health insurance in Poland. The health insurance (HI) has been calculated as 9% of the gross income decreased by social security contributions. Further the part of the HI (amounting to 7,75% of the base) is deducted from tax, if the person is subject to tax in Poland. The amount of 1,25% is paid by the individual from their net income.