Obligations of a foreign company towards employees seconded to Poland

March 5, 2025

The status of a tax remitter does not depend on having an establishment in Poland. This thesis was confirmed by the Supreme Administrative Court (NSA) in a ruling dated December 18, 2024, file ref. II FSK 362/22.

PIT tax and the absence of a tax establishment in Poland

The dispute concerned a German company that seconded several employees to Poland for a project, and the Director of the National Revenue Information Service (KIS). The company applied for an individual interpretation, stating that it did not have a tax establishment or branch in Poland. Therefore, it asked whether it would be obligated in Poland to calculate, collect, and remit PIT advances. If so, from when such an obligation would arise.

When does the obligation to pay PIT advance payments arise?

In its own position, the company indicated that the obligation to act as a PIT remitter in Poland would arise upon obtaining the status of an establishment in Poland (after 12 months), but it would be required to account for advances for the entire year retroactively, i.e., from the beginning of the project in Poland. The Director of KIS had a different opinion, stating that the obligation to pay PIT advances would arise from the very beginning of conducting business in Poland (commencement of work), regardless of having an establishment.

An establishment does not determine the obligation of a PIT payer

It is worth noting that the provision regulating the obligations of a remitter does not refer to their status in any way. Therefore, regardless of whether they have a tax establishment in Poland or not, they are subject to the obligations of a remitter in relation to the payment of salaries to employees working in Poland. The obligations of a remitter, being an employer, do not depend in any way on having a tax establishment.

Obligations of foreign employers

Thus, such a foreign employer is obligated to collect and remit PIT advances from the moment the employees are subject to PIT obligations in Poland. This was indicated by the Provincial Administrative Court (WSA) in Gliwice in a ruling dated December 2, 2021, file ref. I SA/Gl 1243/21. The NSA confirmed this position in a ruling dated December 18, 2024, file ref. II FSK 362/22. Therefore, foreign employers should be aware of the obligations imposed on them in connection with seconding employees to Poland.

Tags PIT, PIT advances, tax establishment, zakład podatkowy, zaliczki na podatek dochodowy