Contents:
- Features and Functions of Poland’s Tax System
- Deadlines for Paying Taxes and Contributions
- Consequences of Violating the Law: Tax Debt and Penalty Interest
- Interest Rates (Reduced, Standard, Increased)
- Preparing and Submitting an Installment Plan Application
- Consequences of ZUS Arrears
- Potential Sanctions
By reading this article in full, you will learn:
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The English novelist and playwright John Galsworthy once said: “People understand that taxes are unavoidable, but when there’s an opportunity not to pay them—why not?” On one hand, everyone knows that taxes and other contributions must be paid, yet when a chance arises to avoid these obligations, some may give in to temptation. Non-payment of duties leads to more than fines, sanctions, and debts—it jeopardizes reputation, erodes trust among clients and partners, and sometimes even ends up in court. In this article, we will discuss the potential consequences of failing to pay taxes and contributions on time and explain how to resolve issues with tax authorities.
In Poland, as in other countries, the tax system is a complex mechanism. Therefore, it is crucial to carefully select methods of tax optimization to avoid mistakes that could be interpreted as tax evasion. Tax optimization, in turn, involves legal ways to reduce the tax burden. Additional information on legal optimization methods can be found in the article via the link.
Taxes perform several important functions:
- Fiscal — collection of funds used for the needs of society and the state.
- Redistributive — collected funds are distributed among citizens and various state or public organizations.
- Stimulating — the state supports the development of important economic sectors by offering tax benefits, reducing rates, or exempting from taxes.
Let us remind you that different categories of taxpayers have specific deadlines for paying contributions and taxes.
For example, the deadlines for ZUS payments are as follows:
- Government organizations must make payments by the 5th of the following month.
- Legal entities, such as joint-stock companies (Spółka akcyjna), LLCs (Spółka z o.o.), cooperatives (Spółdzielnia), non-profit partnerships (Stowarzyszenie), and foundations (Fundacja), must pay by the 15th.
- Other business entities, including sole proprietors and partnerships, must make contributions by the 20th of the following month.
Note that this rule applies both to insurance payments for oneself and for hired employees.
Value Added Tax (VAT) must be paid by the 25th of the month following the reporting period. For example, if a company reports monthly, the tax for January must be paid by February 25. If the company chooses a quarterly reporting system, the tax for the first quarter (January — March) must be paid by April 25.
