Large Retailers Face Extra Tax in Poland
January 26, 2016 Taxation in Poland
WARSAW – Large retailers in poland will soon be facing an extra tax on their profits, with hiked rate for weekend trading and holiday specials.
On January 25th the Finance Ministry of Poland announced that a new progressive tax will soon be enacted on large retail stores operating in the country.
The new tax will be levied at a rate of 0.7 percent on retailers with monthly sales of between PLN 1.5 million and PLN 300 million, and at a raised rate of 1.3 percent on businesses with sales exceeding PLN 300 million.
A further raised tax of 1.9 percent on profits made by large stores on weekends and during holiday sales.
The Ministry also indicated that the new tax shall not lead to any increase in retail prices faced by consumers, leading some experts to believe that the cost of the tax is intended to be swallowed by retailers instead of being passed to consumers.
Cumulatively the tax is expected to bring in extra tax revenues of approximately PLN 2 billion in 2016.
The tax is expected to come into force in April 2016.
Photo By: Ciaran McGuiggan