Capital Gains Taxation in Poland
In Poland, capital gains are subject to taxation under the Personal Income Tax Act (PIT) and the Corporate Income Tax Act (CIT). The PIT applies to individuals, while the CIT applies to legal entities such as companies and partnerships.
Definition of Capital Gains
Capital gains in Poland are defined as profits derived from the sale or disposal of assets, including:
- Real estate
- Stocks and shares
- Bonds and other financial instruments
- Business assets
Calculation of Taxable Capital Gains
Taxable capital gains are calculated as the difference between the selling price of the asset and its acquisition cost. The acquisition cost includes the original purchase price, any expenses incurred in acquiring the asset, and any improvements made to the asset during ownership.
Tax Rates
Capital gains are taxed at a flat rate of 19% for individuals and 19% for companies. However, certain exemptions and preferential tax rates may apply in specific cases.
Legal Framework
The taxation of capital gains in Poland is governed by the following articles of the PIT and CIT Acts:
- PIT Act: Article 10(1)(8)
- CIT Act: Article 12(1)(8)
These articles provide the legal basis for the taxation of capital gains and outline the specific rules and regulations applicable to individuals and companies.
Policy Objectives
The Polish capital gains tax system aims to:
- Generate revenue for the government
- Ensure that individuals and companies contribute their fair share of tax on profits realized from investments and asset disposals
- Promote investment and economic growth by providing incentives for capital formation
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