Warsaw
EY Doradztwo Podatkowe Krupa Sp.k. (EY)
Rondo ONZ 1
00-124 Warsaw Poland
Executive contact
Marek Jarocki
A. Income tax
+48 (22) 557-7943
Fax: +48 (22) 557-7001
Email: marek.jarocki@pl.ey.com
Who is liable. Residents are taxed on worldwide income. Non residents are taxed on Polish-source income only.
Under domestic law measures, individuals who have their center of personal or economic interests (a center of vital interests) in Poland or stay in Poland for a period exceeding 183 days in a given tax year are generally considered Polish tax residents. Individuals who do not have their center of personal or economic interests in Poland and stay in Poland for a period shorter than 183 days in a given tax year are taxed in Poland only on Polishsource income.
Income subject to tax. The taxation of various types of income is described below.
Employment income. Taxable compensation includes salaries, bonuses and other compensation from employment exercised in Poland, regardless of whether paid in cash or in kind.
In addition to the statutory lump sum of PLN3,000, it is possible to apply the tax-deductible costs of an employee up to a maxi mum amount of PLN85,528 annually (PLN120,000 in 2022). Such deduction is currently possible based on the mechanism of the transfer of copyrights to works created within the employ ment contract and is intended for employees who are performing certain creative activities in specified fields. The applicability of increased tax-deductible costs for creative activities was restrict ed in 2018 to certain specified activities, such as the creation of computer programs, research and development works, audiovi sual works, and journalistic works.
Education allowances provided by employers to their local and expatriate employees’ children 18 years of age and under, as well as the cost of additional (not provided for by the labor law) medical packages provided to employees, are taxable for income tax and social security purposes.
Amendments to the Personal Income Tax Act introduced an exemption from tax for employment income of young people. Under the amendments, employment income up to a maximum annual amount of PLN85,528 that is earned by a taxpayer who is not older than 26 years old is exempt from tax. Starting with
2022, a similar exemption is applicable to, among others, indi viduals who return to Poland from a long stay abroad, parents with four or more children, or individuals who have passed the retirement age but continue to work and do not receive the pen sions to which they are entitled.
Self-employment and business income. Taxable self-employment income consists of income from self-employment activities after the deduction of allowable expenses. Self-employment income is generally taxed with other income at the progressive rates set forth in Rates
Under certain circumstances, self-employment income may be taxed at a 19% flat rate (the difference between earnings and taxdeductible costs equals taxable income). Real estate rental income may be taxable as self-employment income or may be treated as a separate source of income (but starting with 2022, it will not be possible to deduct any costs of such activity from the taxable revenues that will be subject to progressive rates of 8.5% and 12.5%).
Directors’ fees. In general, directors’ fees paid to residents are taxed with other income at the rates set forth in Rates. Directors’ fees paid to nonresidents are subject to a final withholding tax of 20%.
Investment income. Interest income derived in Poland (except for interest derived from loans connected with business activities) and income derived from capital (investment) funds in Poland are generally taxed at a flat rate of 19%. Dividends from Poland are generally taxed at a flat rate of 19%. In general, interest on per sonal bank account deposits is taxed at a flat tax rate of 19%. In principle, all of these taxes are withheld at source.
Income from the rental of real estate is taxed at the progressive rates set forth in Rates. Rental income up to PLN100,000 may also be taxed at a flat rate of 8.5%; the excess over PLN100,000 may be taxed at a flat rate of 12.5%. Beginning with 2022, it will not be possible to apply progressive rates unless the rental of real estate is conducted within a business activity. For the taxation of real estate sales, see Capital gains
Taxation of employer-provided stock options. In general, employerprovided stock options are taxed at the time of exercise on the difference between the fair market value at the date of exercise and the exercise price. This amount is generally taxed at the stan dard progressive tax rates. However, this amount may be exempt from tax for employees or contractors granted the right to obtain shares of a joint stock company seated in a European Union (EU) or European Economic Area (EEA) member state or in a state that has entered into a double tax treaty with Poland (the Company), based on a resolution of the shareholders’ meeting of the Company, or of the joint-stock company dominant (according to the Polish Accounting Act) to the Company, implementing the incentive program (which is legally defined).
At the time the shares are sold, an amount equal to the sale price decreased by the exercise price and by the amount of the taxable income recognized at the time of exercise is taxed at a 19% rate.
Capital gains. In general, income received from the sale of real estate is taxed at a flat rate of 19%. Real estate income equals the difference between the sales price and respective expenses, which include the purchase price.
However, if the sale of real estate occurs more than five years after the end of the calendar year in which the real estate was acquired or built (six months for other property, counted from the end of the month in which the property was acquired), the income from the sale is not subject to tax.
Income derived from the sale of shares is subject to tax at a rate of 19%.
Deductions
Personal deductions and allowances. In addition to the exemp tions mentioned in Income subject to tax, effective for revenues received in 2022 and future years, small personal deductions or allowances may be claimed in calculating income tax.
Deductible expenses. A limited number of deductions and credits are allowed, and only a few apply to nonresidents.
Donations to public benefit organizations and religious institu tions are deductible from income, up to 6% of the annual taxable income. Expenses up to PLN760 incurred with respect to internet access are deductible from income for two consecutive years, provided that the deduction was not applied in preceding years. Child reliefs depend on the number of children. A credit of PLN92.67 per month of child raising can be subtracted from the tax liability for the first (provided that the parental income does not exceed a certain limit) and second child. Child relief is increased to PLN166.67 per month for the third child and to PLN225 per month for each additional child.
Business deductions. Self-employed individuals may deduct most costs related to generating business income, unless they are sub ject to lump-sum taxation (see Rates).
Rates. From 1 January 2022, income tax is levied at the rates set forth in the following table.
Taxable income
Tax Tax-free threshold
PLN1 to PLN120,000
* The tax-free amount is applicable only once.
PLN30,000*
PLN30,000* Over PLN127,000
Income from an undisclosed source is separately taxed at a rate of 75%.
Different types of taxation of self-employment income exist in Poland. In general, self-employment income is taxed together with other income at the rates set forth above. Under certain cir cumstances, self-employment income may be taxed at a 19% flat rate (the difference between earnings and tax-deductible costs equals taxable income). In addition, if self-employment income did not exceed the equivalent of EUR250,000 (EUR 2 million from 2022) in the preceding year, lump-sum taxation at rates ranging from 2% to 17% may apply.
Nonresidents are subject to a final withholding tax of 20% on fees received for membership on management boards granted under a specific resolution and on income derived from commis sion, management contracts, interest, copyrights, trademarks, designs and know-how.
Relief for losses. Losses from self-employment activities may offset income only from the same source. Unused losses may be carried forward for the following five years. In general, the deduction in any one year is limited to 50% of the original loss incurred, subject to a PLN5 million de minimis whereby the taxpayer can deduct up to PLN5 million of the loss carryforward without restriction in the first relevant year following the year in which the loss is incurred (that is, the year in which income from the same source are realized); any excess loss can continue to be carried forward subject to the 50% limitation rules, within the five-year carryforward period. Consequently, part of the benefit of the losses carried forward may be forfeited if a taxpayer has insufficient profit from a particular income source.
B. Other taxes
Inheritance and gift tax. In general, inheritance tax and a tax on gifts apply to assets that are located in Poland or property rights executed in Poland. In certain cases, the acquisition through inheritance or gift of immovable property and other assets locat ed abroad is taxable if at the time of inheritance or execution of a donation contract, the acquirer is a Polish citizen or has permanent residence in Poland.
Tax rates are progressive and range from 3% to 20% for 2022, depending on the recipient’s relationship to the donor or the deceased. The recipient of the property is required to pay the tax due. Under specific conditions, the closest relatives of the donor or the deceased are exempt from inheritance and gift tax.
Solidarity tax. Beginning in 2019, a solidarity tax is imposed at a rate of 4% on individuals obtaining total income exceeding PLN1 million in a given tax year (only particular sources of income are subject to this tax, including, but not limited to, employment income and rental income). The covered taxpayers are also required to file a separate tax return (DSF-1 form).
Exit tax. Poland applies an exit tax at a rate of 3% or 19%. This tax applies to Polish residents planning to move their tax resi dency to another country. Deemed income is taxable, regardless of the fact that potential capital gains have not yet been realized as of the date of the move of residency.
C. Social security and health care contributions
Social security. Social security contributions are paid partly by the employer and partly by the employee. Contributions are lev ied at the following rates calculated on the employee’s gross remuneration.
Type of contribution Rate (%)
Retirement insurance 19.52
Disability insurance 8.00
Sickness insurance 2.45
Industrial injuries insurance 0.67 to 3.33*
* The rate depends on the employer’s type of business activity.
Contributions for retirement insurance are paid half by the employ er and half by the employee. For disability insurance, the employer covers 6.5% and the employee covers 1.5%. The employee pays the entire sickness insurance contribution, and the employer pays the entire industrial injuries insurance contribution. The maximum annual base for calculating retirement and disability contribu tions is 30 times the projected national average monthly remu neration for that year (PLN177,660 for 2022).
Directors’ fees payable to board members and commercial prox ies based on a specific resolution are not subject to social secu rity and health care contributions.
As a result of Poland’s accession to the EU, it is covered by the EU social security regime, which is principally provided in European Community (EC) Regulations 1408/71 and 883/2004.
Health care system. In general, contributions to the health care system are levied at a rate of 9% on the employee’s assessment base, which is gross remuneration after deduction of the employ ee’s contributions to retirement, disability and sickness insur ance. However, there are several exceptional rates of health care contribution for individuals conducting individual business activ ity who pay the flat 19% tax or use lump-sum taxation. Beginning with 2022, health care contributions are no longer deductible for personal income tax purposes.
D. Tax filing and payment procedures
The tax year in Poland is the calendar year. By 30 April following the close of the tax year, taxpayers must file tax returns and pay any difference between total tax payable and advance payments. Married persons who are Polish tax residents may be taxed jointly, if certain conditions are met. Under additional conditions, joint filing may be available to Polish tax nonresidents who are tax resident elsewhere in the EU, the EEA or Switzerland.
Income tax may be generally withheld directly by employers on behalf of employees and remitted to the tax office within 20 days after the end of the month in which the income is paid or made available to the employee. Self-employed individuals and expatri ates on temporary assignments to Poland who are paid from abroad must generally make advance tax payments each month, and must file annual tax reconciliations stating their income received and the advance tax paid by 30 April of the following year.
From 2017, the following employer-reporting obligations are in force:
• Polish Labor Inspectorate notification duty regarding new assignees
• The Common Reporting Standard of the Organisation for Economic Co-operation and Development (OECD) regarding the tax residency of financial institutions’ customers
E. Double tax relief and tax treaties
Poland has entered into double tax treaties with the jurisdictions listed below. Most of the treaties follow the OECD Model Convention.
Albania (e)(h) Indonesia (h) Portugal (e)(h)
Algeria (a) Iran Qatar (h)
Armenia Ireland (e)(h) Romania
Australia (h) Isle of Man (c) Russian Federation (h)
Austria (h) Israel (h) Saudi Arabia (h)
Azerbaijan Italy (e) Serbia (d)(h)
Bangladesh Japan (h) Singapore (h)
Belarus Jersey (c) Slovak Republic (h)
Belgium (b) (h) Jordan (h) Slovenia (h)
Bosnia and Kazakhstan (e) South Africa
Herzegovina (h) Korea (South) (h) Spain
Bulgaria (e) Kuwait Sri Lanka
Canada (h) Kyrgyzstan Sweden (e)
Chile (h) Latvia (h) Switzerland
China Mainland Lebanon Syria
Croatia (e) Lithuania (h) Taiwan (f)
Cyprus (h) Luxembourg (e)(h) Tajikistan
Czech Republic (h) Malaysia (g) Thailand Denmark (h) Malta (h) Tunisia
Egypt (h) Mexico Turkey Estonia Moldova Ukraine (h)
Ethiopia Mongolia United Arab Finland (h) Montenegro (d) Emirates (e)(h)
France (h) Morocco United Kingdom (h) Georgia (g) Netherlands United States (g)
Germany New Zealand (h) Uruguay (a)
Greece Nigeria (a) Uzbekistan
Guernsey (c) North Macedonia Vietnam
Hungary (e) Norway (h) Zambia (a)
Iceland (h) Pakistan (h) Zimbabwe India (h) Philippines
(a) These treaties have been signed or initialed, but they are not yet in force. (b) This treaty was amended by a protocol that was signed on 14 April 2014 and entered into force on 2 May 2018. (c) This treaty applies to enterprises operating ships or aircraft in international traffic and certain income of individuals. (d) This is based on the tax treaty with the former Yugoslavia. (e) The Ministry of Finance has issued a rectification for this treaty. In this case, rectification means that the Polish Minister of Foreign Affairs has issued an official error correction notice with respect to an omission or error found in the final text of the double tax treaty. It is an administrative remedy for print ing errors or omissions found in the final document after its publication. (f) This treaty is regulated by a local Polish act as a result of the disputed interna tional status. (g) A new treaty has been signed, but it is not yet in force. (h) This treaty has been changed by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Multilateral Instrument or MLI).
F. Visas and temporary permits
An individual who is not a Polish citizen is considered a foreign national.
Visas may be obtained in a Polish consulate abroad relevant to the foreigner’s permanent residence. Foreigners entering Poland with a Schengen visa or under the “visa-free” travel regulations may stay in Poland (including other Schengen countries) for up to 90 days during any 180-day period. In certain cases, if a bilat eral agreement between Poland and the other country exists, the 180-day restriction period may be abolished. (for example, for United States citizens)
In general, a foreigner who wishes to stay in Poland for longer than 90 days must apply for a long-term visa or for a temporary residence permit and demonstrate a legitimate purpose for an extended stay. Good cause includes, but is not limited to, the grant of an employment permit or the performance of other work in Poland. In addition, he or she must have financial resources to live in Poland and must be covered by health insurance valid in Poland. Temporary residence permits are, in principle, valid for a period of up to three years. In principle, long-term visas are valid for a period of up to one year. Both a long-term visa and a tem porary residence permit allow individuals to travel within Schengen member states on general terms (90 days in a 180-day period). Stays in Poland based on these documents are not counted into the general Schengen limit. However, in the case of a stay based the short-term Schengen type C visa, residence in Poland is also counted into the general limit.
An application for granting a temporary residence permit can be submitted if there are circumstances justifying a stay in Poland for a period longer than three months, with the exception of a temporary residence permit granted due to circumstances that require a short-term stay and a permit for temporary stay for the purpose of the seasonal work.
In the proceedings for granting or withdrawing a temporary resi dence permit, the only party to the proceedings is the foreigner, except for proceedings for granting or withdrawing a temporary residence permit for the purpose of performing work as part of an intra-corporate transfer (ICT) and a temporary residence per mit to enjoy long-term mobility of an employee from the mana gerial staff, specialist or internship employee as part of an ICT. In this case, the party to the proceedings is the undertaking admit ting the foreigner.
The application for a temporary residence permit must be sub mitted to the voivode relevant for the foreigner’s place of resi dence. The foreigner must be present in Poland on the day of the submission of the application.
A special type of residence permit (intra-corporate transfer [ICT] permit) is available for third-country nationals who are trans ferred within the same group of companies. This type of resi dence permit applies to non-EU country managers, specialists and trainees. It can be issued for a maximum period of three years to managers and specialists and for one year to trainees. The entity required to file for this permit is the host company and it must file for the permit before the non-EU national’s arrival in Poland. To apply for such a permit, the individual should have been employed within the same group of companies for at least 12 months prior to the transfer in the case of managers and specialists, and at least 6 months in the case of trainees. The host company must provide evidence that the non-EU national man ager or specialist has the professional qualifications and adequate professional experience needed for a given job or position, or in the case of trainees an appropriate diploma. The ICT permit allows an individual to stay and work in Poland.
Individuals holding a valid ICT permit issued by another EU country may benefit from short-term and long-term mobility to Poland. If a non-EU national’s transfer to Poland does not exceed
90 days in a 180-day period, he or she can legally work in Poland based on a notification submitted to the Polish immigration office by the host company that the non-EU national was assigned to Poland within the structure of an ICT (short-term mobility). If a transfer exceeds 90 days, a special long-term mobility residence permit is required. This is issued by the immi gration office in Poland at the request of the local host entity.
A foreign individual is expected to register at a specific address with the municipal office in the district of his or her intended residence. Citizens of EU and European Free Trade Association (EFTA) states and Switzerland must register within 30 days after their date of arrival in Poland if his or her stay in Poland is to exceed 3 months. Third-country nationals must register within 4 days after their arrival in Poland if his or her stay in Poland is to exceed 30 days.
For EU citizens, in general, registration of their stay is required for stays longer than three months. Every trip outside of Poland resets the registration deadline. In addition, an EU citizen must meet one of the following conditions:
• He or she works or performs a business activity in Poland.
• He or she is covered by health insurance and has sufficient financial resources to live in Poland.
• He or she is pursuing studies and is covered by health insurance.
• He or she is a spouse of a Polish citizen.
After a five-year period, EU citizens acquire the status of per manent resident if he or she continues to fulfill the respective conditions.
G. EU long-term residence permit
Foreign individuals intending to stay in Poland permanently may obtain EU long-term residence permits, which entitle them to permanent domicile in Poland. In general, a foreign individual may obtain an EU long-term residence permit if he or she satis fies the following conditions:
• He or she has financial resources to live in Poland.
• He or she is covered by health insurance.
• He or she has resided in Poland at least five years.
• He or she has fluency in the Polish language at the B1 level, as confirmed by the appropriate certificate, or has completed school or studies in the Polish language.
EU long-term residence permits are issued by the voivode in the district where the applicant intends to reside permanently. The Commandant of Voivode Police must give his or her opinion on the suitability of the applicant before the card is granted.
A person with an EU long-term residence permit is treated as a Polish citizen for purposes of labor regulations and does not need a work permit or permission to undertake employment in Poland.
The EU long-term residence permit is considered the foreigner’s identity card in Poland. The EU long-term residence permit is granted permanently, but the residence card is issued for five years and must be exchanged after that period.
H. Work permits and self-employment
Work permits. Polish law concerning the employment of expatriates is subject to frequent change. In general, foreign nationals wishing to work in Poland must obtain a work permit. However, citizens of the EU and EFTA states are exempt from the require ment of obtaining a work permit in Poland.
Work permits for foreigners are required for the following types of employment:
• Type A: A foreigner works in Poland under an employment contract with an entity whose headquarters, place of residence, branch, permanent establishment, or other form of activity is located in Poland.
• Type B: A foreigner performing a function in the management board, acting as a proxy or a general partner of a legal person entered into the Register of Entrepreneurs or of a company under organization remains in Poland for more than a total of 6 months in any 12-month period.
• Type C: A foreigner is employed by a foreign employer and is delegated to Poland for a period longer than 30 days in a calen dar year to a branch or a permanent establishment of the foreign entity, or its related entity, as defined in the Act of 26 July 1991 on income tax from individuals.
• Type D: A foreigner employed by a foreign employer that has no branch, permanent establishment or other form of an orga nized business activity in Poland is delegated to Poland for the purpose of performing temporary and occasional services (export services).
• Type E: A foreigner is employed by a foreign employer and is delegated to Poland for a period longer than 30 days in any 6-month period for purposes other than those listed for Types C and D.
• Type S: A foreigner is employed as a seasonal worker in areas such as agriculture, gardening and tourism. It allows foreigners to work in Poland for a maximum period of nine months in a calendar year and is available for nationals from all countries.
Work may be also executed after obtaining the so-called “single permit” (unified permit). If a local Polish contract will be signed with the foreigner, in certain cases, when applying for the work permit for the foreigner, it is necessary to prove that an employer is not able to fulfill the need of employment using local individu als (that is, to obtain a so-called “negative labor market test”). The Minister of Labor and Social Affairs publishes the list of the professions that are exempt from performing the labor market test in order to prove that an employer is not able to fulfill the need of employment. The list contains, among others, a wide range of information technology (IT) professions, engineers, medical pro fessions, and construction specialists.
A work authorization application must be accompanied with a statement that the company has never been convicted of crimes connected to employment, human trafficking and forgery of docu ments. After the work permit is granted, the foreigner must obtain a visa with the right to work in the Polish consulate of his or her country of origin or a residence permit in Poland (possible only if the person is legally present in Poland). A foreigner may work in Poland only if he or she is staying in Poland legally (including visa-free travel).
An entity planning to employ a foreigner should apply for the issuance or extension of a work permit at least 60 to 90 days before the planned employment date or expiration date of the preceding work permit.
A work permit is issued for an individual foreigner. The work permit includes details regarding the employer, the position or type of work to be performed by the foreigner, remuneration and the expiration date of the permit.
It is possible to apply for a residence permit with a right to work in a unified procedure. Such option is available in case of a Polish employment contract and a person legally staying in Poland. Foreigners who are staying in Poland based on a tourist visa or family/friends visit visa are not able to apply for the residence permit with a right to work in a unified procedure. Restrictions apply both for Schengen and national visas.
Each year, a maximum yearly limit of work authorizations that can be issued by the authorities may be introduced. It needs to be checked whether the limits have been introduced.
The work permit may be revoked if any of the following occurs:
• The recipient performs activities contrary to those set out in the permit.
• The recipient loses certain qualifications required for the per formance of the job (for example, a driver’s license is withdrawn).
• The recipient acting on behalf of the employer in labor law mat ters grossly and persistently breaches the labor law rules.
The administrative fee for obtaining the work permit is up to PLN100.
The following foreigners, among others, may be exempted from the work permit requirement:
• A foreigner authorized to live and work in the EU, employed by an employer established in the EU and assigned to provide services in Poland
• Citizens of Armenia, Belarus, Georgia, Moldova, the Russian Federation or Ukraine who work during a period not exceeding 6 months in 12 consecutive months on the basis of an employer’s declaration of the intention to employ such nation als, provided that such nationals are registered in the district employment agency competent for the place of residence or registered office of the entity submitting such declaration. If the application for a work permit or a residence permit with a right to work was submitted before the expiration of the foreigner’s declaration, the foreigner’s work remains legal after the expira tion of the declaration until the issuance of a work or residence permit. However, this rule applies only if the foreigner has worked in Poland based on the declaration for minimum period of three months and has concluded an employment contract with the employer.
• Foreigners who are board members of Polish companies or branches of the companies are allowed to work in Poland for 6 months in a period of consecutive 12 months without the obligation to obtain a work permit. Since January 2018, this regulation has been extended also to proxies and general part ners whose work in Poland is connected to managing limited
partnership companies. However, proxies and general partners, whose work in Poland is to exceed 6 months in a period of 12 consecutive months, need to obtain a work permit.
• Foreigners authorized under the agreement establishing an association between the EC and Turkey
• Persons who have permanent residence abroad and are sent to Poland by a foreign employer for a period not longer than three months in a calendar year for one of the following purposes:
— Installation and maintenance or repair of delivered, technologically complete appliances, constructions, machines or other equipment, if the foreign employer is the manufacturer of such items
— Collection of ordered appliances, machines, other equip ment or parts manufactured by a Polish producer
— Providing a training course for the workers of a Polish employer that is a user of appliances, constructions, machines or other equipment referred to in the first item above, in the scope of operation or use of such appliances, constructions, machines or other equipment
— Assembly or disassembly of exhibition stands as well as supervision over such stands, if the exhibitor is a foreign employer who delegates foreigners for this purpose
Business activities. Non-EU foreigners running businesses in Poland may obtain visas or temporary residence permits. In some cases, a work permit may be required. In general, non-EU for eigners may engage in business activities exclusively in the form of the following:
• Limited partnership
• Limited joint stock partnership
• Limited liability company
• Joint stock company
International agreements between individual jurisdictions and Poland may provide for additional limitations or rights.
Blue Card. Poland accepts EU Blue Card applications from highly skilled third-country nationals who have an employment contract with a Polish company and possess the required qualifi cations (relevant higher education certificates and documents proving professional experience). An individual holding a Blue Card may apply for an EU long-term residence after he or she has spent five years living in the EU of which the last two years were spent in Poland.
I. Family and personal considerations
Family members. Family members of expatriate applicants who obtain work or business visas may receive visas/residence permits as accompanying persons. Children who are above 18 years old must have their own purpose of stay, such as school or stud ies. These visas/residence permits may be issued for a period no longer than the period of validity of the primary applicant’s visa/ residence permit. EU citizens’ family members may obtain EU citizens’ family member cards. After five years, they acquire the status of permanent resident if they fulfill the respective conditions.
Marital property regime. A community property regime applies in Poland to married couples. Under the regime, property acquired
before the marriage or during the marriage for proceeds received as an equivalent for the property acquired before the marriage remains separate. Couples may amend or opt out of the regime by a notarized agreement.
Forced heirship. Under Polish inheritance law, specified legal heirs, including descendants, surviving spouse and parents, are entitled to a legal portion of an estate if certain conditions are met. Driver’s licenses. In general, foreign individuals may drive legally in Poland with their home country driver’s licenses or interna tional driver’s licenses for a period of six months. After an indi vidual has been in Poland for six months, he or she should change a foreign driver’s license to a Polish driver’s license. A driver’s license issued by another EU member state does not have to be changed after six months.
Members of the diplomatic corps often enjoy special privileges with respect to driver’s licenses.
J. Proposed changes to the law
The changes discussed below have been enacted, but they are not yet in force. They will enter into force based on the competent ministry regulation. As a result, there is no clear answer as to whether they will be applicable in Poland soon. Therefore, they may currently be considered proposed changes.
From January 2019, a simplified procedure for obtaining a resi dence permit with a right to work has been introduced for for eigners whose purpose of stay in Poland is to perform work in professions desired for the Polish economy.
These professions can be specified in a regulation of the Minister of Family and Social Policy. To obtain a residence permit, an entity will not be required to demonstrate that it is not able to meet its staffing needs on the local labor market. Special grounds will also be provided for granting permanent residence permits to foreigners holding a residence permit with a right to work after four years of uninterrupted stay in Poland.
As of the time of writing, the list of professions had yet not been published by the competent minister.
The above provisions will make it possible to specify in a flexible manner by way of regulation, one or multiple limits with a possible division into voivodships, professions, the types of contracts under which work is to be performed and the types of business conducted by entities hiring the foreigners. This will allow nega tive phenomena in the labor market to be counteracted as cogni tive tools corresponding to the situation on the Polish labor market are developed. This tool will be used to limit the number of work and residence authorization documents for third-country nationals.
The new Act on Foreigners provides also for legal grounds for the optional determination of limits in a given calendar year for the following:
• Temporary residence and work permits
• Temporary residence permits for the purposes of highly quali fied employment
• Temporary intra-corporate transferee permits
• Temporary residence permits for business purposes for a foreigner working as a board member in a company in which he or she holds shares or as a proxy or general partner in a limited partnership or partnership limited by shares
The Polish parliament is working on a new draft law on the employment of foreigners, which was recently submitted by the Polish government. The draft law aims to facilitate the recruit ment of non-Polish nationals into the Polish labor market and reduce government requirements and processing times for certain applications.
The new draft law includes proposals to amend the Foreigners’ Act in the following ways:
• Create “priority admission paths,” which will expedite the application process for specific categories of applicants, includ ing citizens of specific countries (which have yet to be announced).
• Accelerate the issuance of residence and work permits to appli cants who are sponsored to work in entities of particular strate gic importance to the Polish economy (which have yet to be announced).
• Ensure that all applications for temporary residence permits are processed by the government in 60 days or less, and that all appeals of government decisions (for example, denials of temporary residence permit applications) are processed within 90 days.
• Eliminate some of the requirements for obtaining temporary residence permits (for example, elimination of the requirement to have a stable and regular source of income for the granting of temporary residence and work permits).
• Eliminate the need to obtain new residence and work permits in some instances when foreigners change employers or jobs while in Poland, and facilitate the process of obtaining new residence and work permits following changes in employers or jobs (when required).
• Ensure that all applications for permanent residence permits and EU long-term residence permits are processed by the gov ernment in six months or less.
• Create a simplified procedure for processing temporary residence permit applications that were filed with the Polish government before 1 January 2021 and will not have been processed by the time the new law goes into effect.
The new draft law also seeks to amend the Act on Employment Promotion and Labor Market Institutions in the following ways:
• Accelerate the issuance of work permits to applicants who are sponsored to work in entities of particular strategic importance to the Polish economy (which have yet to be announced).
• Enable Polish companies to use Declarations on Entrusting Work to a Foreigner (that is, a simplified procedure for obtaining work authorization) for nationals of Armenia, Belarus, Georgia, Moldova, the Russia Federation and Ukraine who work in Poland for up to 24 months (up from 6 months in a 12-month period, previously).