All new businesses commencing their activities are expected to register with the appropriate local tax office.

Taxpayers are required to maintain accounting records, which serve as the basis for the calculation of tax. Businesses are obliged by law to calculate taxes due during the fiscal year, to make prepayments and also to fulfill certain other duties.

Polish law provides for two ways in which tax liabilities are incurred:
  • through the occurrence of specific events, which, under existing legal regulations, cause tax liabilities to arise. Nearly all tax liabilities incurred by businesses are created in this fashion;
  • on the basis of an administrative order specifying the amount to be settled.
Administrative orders may be issued during a period of up to three years after the end of the fiscal year during which the tax liability was incurred. This procedure is employed principally in situations where the tax authorities question the credibility or soundness of the accounting records on which the taxpayer bases the calculation of his tax obligations.

Tax liabilities cease to exist when:
  • the statute of limitations expires: the tax authorities should issue their decision on the tax due within a period of three years; however, should the taxpayer willfully fail to report the tax due or otherwise try to hamper the issuance of the decision in question, the statute of limitations is extended to five years;
  • the taxes are forgiven: this concerns overdue taxes and penalty interest; the relevant decisions are issued by the tax authorities on the basis of an application by the taxpayer. The decision on whether to issue such a waiver is at the discretion of the tax authorities.

This information was correct as of 11 September 1997.

Tax laws and practise are constantly being revised and, whilst every effort is made to ensure that the information is accurate and timely, no decision should be taken on the basis of the information herein without first consulting with KPMG Polska.

Should you have any questions in relation to the above issues, please contact:
Oliver Sinton
KPMG Polska
LIM Center - Marriott Hotel - IX floor
Al. Jerozolimskie 65/79
00-697 Warsaw, Poland
Tel: +48 (22) 630 7236
Fax: +48 (22) 630 6355