17 Jan 2025
Moving to a new country brings a host of adjustments, and for Ghanaian expats in Poland willing to send money from Poland to Ghana, navigating the Polish tax system can be a significant challenge. Understanding the local tax obligations is crucial whether you plan to work, invest, send remittances, or even retire in Poland. This guide provides an overview of Poland's tax structure, focusing on personal income tax, social security contributions, and tax obligations specifically for expats.
Ghanaian expats in Poland should consider using reliable and secure money transfer services to ensure smooth financial transactions and avoid potential tax-related issues. These services can help streamline sending money from Poland to Ghana while complying with local tax regulations. Additionally, consulting with a qualified tax advisor can provide personalized guidance and help optimize your tax strategy, ensuring you meet all your tax obligations and maximize your financial returns.
In Poland, your tax obligations are primarily based on your residency status. Ghanaian expats who spend more than 183 days in a tax year in Poland or maintain a "center of vital interests" there, such as family or economic ties, are considered Polish tax residents. This means they are subject to tax on their global income. Non-residents, on the other hand, are taxed only on income generated within Poland. The "center of vital interests" test determines residency status in Poland. It considers factors such as:
The location of your family members, especially your spouse and children.
The location of your primary source of income, investments, and property.
The location of your social and cultural activities, such as hobbies, clubs, and community involvement.
If your "center of vital interests" is in Poland, you may be considered a tax resident even if you spend less than 183 days there. Understanding the specific criteria for determining residency status is essential.
For Ghanaian expats who work hard to send money online to Ghana from Poland, you must understand the rates and allowances. For self-employed Ghanaian expats or those earning income from rental properties, there's an option to pay a flat tax rate of 19%. This flat rate can benefit those with higher incomes, allowing more predictability in tax expenses. However, you must apply for this option with the local tax office, and it's important to note that it may have specific eligibility criteria and limitations.
Poland uses a progressive tax system with two main income tax rates: 12% and 32%. The rate is 12% for income up to PLN 120,000 (around $28,000). Any earnings beyond this threshold are taxed at 32%. A tax-free allowance of PLN 30,000 (approximately $7,000) also helps reduce taxable income for low-income residents. However, it's worth noting that the tax-free allowance can be reduced or eliminated under certain circumstances.
The tax year in Poland aligns with the calendar year, and income tax returns must be filed by April 30th of the following year. For instance, for income earned in 2023, the deadline for filing is April 30th, 2024. In some cases, extensions may be available. If eligible, these extensions can come in very handy for expats who frequently have to make a money transfer from Poland to Ghana.
Employers typically handle tax deductions for salaried employees. Still, if you have additional income or specific deductions, you must file your tax return independently.
Expats in Poland commonly use the PIT-37 form to report employment income. At the same time, self-employed individuals may need to use the PIT-36 or PIT-28 forms. Although these forms are commonly used, others may be used depending on your circumstances. The Polish Tax Administration's website has these forms accessible, and they are essential for compliance.
Ghanaian expats working in Poland must also contribute to the local social security system. These contributions support various public services, including healthcare, pensions, and unemployment benefits. The employee's portion of social security contributions is approximately 13.71% of gross income, with employers covering additional contributions. However, the employer's portion may vary depending on the industry and specific circumstances.
Poland offers a range of deductions and tax reliefs that can benefit Ghanaian expats. For example, you may be eligible for deductions on expenses such as business-related travel, health insurance, and education. Additionally, Poland has treaties with several countries to prevent double taxation. Although Ghana and Poland do not have a specific tax treaty, as a Ghanaian expat willing to send money to Ghana from Poland, seeking guidance from a tax professional to explore possible exemptions or credits that can reduce your tax burden is advisable.
If you're a Ghanaian entrepreneur running a business in Poland, you need to be aware of the Value Added Tax (VAT). The standard VAT rate in Poland is 23%, though there are reduced rates for certain goods and services. Registering for VAT is mandatory if your business exceeds a specific turnover threshold. Understanding VAT is crucial to ensure compliance and avoid penalties due to particular thresholds and requirements for VAT registration.
For Ghanaian expats planning to leave Poland, completing tax exit procedures is essential. This involves notifying the tax authorities about your departure and submitting a "PIT-ZG" form at least 30 days in advance. Following this process, you'll receive a tax clearance certificate confirming you've met all tax obligations. This is essential if you plan to reside in another country and need to prove your tax compliance.
Understanding Poland's tax system is key to ensuring compliance and maximizing one's financial situation. Ghanaian expats should familiarize themselves with these regulations, seek professional assistance when necessary, and explore tax relief options. Staying informed and compliant will enable one to focus on enjoying one's new life in Poland. When you want to send money online to Ghana from Poland or manage cross-border payments, home remittance services like ACE Money Transfer provide a secure and efficient platform designed to meet your specific needs as an expat.
ACE Money Transfer offers convenient, fast, and secure services for all your money transfer needs, from sending remittances to Ghana to managing finances in Poland.
You are considered a Polish tax resident if you spend more than 183 days in the country during a tax year or if Poland is your primary center of life interests, such as family or business ties. Tax residents are taxed on worldwide income, while non-residents are taxed only on income generated in Poland.
Poland has a progressive income tax system with two rates: 12% for income up to PLN 120,000 and 32% for income over that threshold. Self-employed individuals can opt for a flat tax rate of 19%, which benefits higher incomes.
Annual tax returns must be filed by April 30th for the previous calendar year. If employed, your employer typically handles initial tax payments, but you may need to file independently for additional income or deductions.
Yes, you must contribute to the social security system if you are employed in Poland. Employees pay around 13.71% of their gross salary, while employers cover additional contributions.
Poland offers deductions on specific expenses, such as work-related travel, health insurance, and education costs. While Poland does not have a double tax treaty with Ghana, tax advisors can help optimize your tax situation under existing tax laws.
ACE Money Transfer offers a secure and efficient way to manage cross-border payments. Whether you need to send remittances to Ghana or manage finances in Poland, ACE provides competitive rates, low fees, and quick transfers to help you stay financially connected.
