Can business activity be classified as a foreign tax establishment in Poland?
Does working remotely in IT create a foreign tax establishment? Could operating from Poland temporarily lead to tax consequences for sole proprietorships? These are the key questions explored in our latest analysis. In a recent article in Gazeta Wyborcza, our experts shared their insights on this topic.
The full article can be accessed here.
We’ve addressed this issue before:
tax advisor Piotr Sekulski, PhD
(…) Over the past two years, Polish tax authorities have shifted their stance on remote IT workers. Previously, they weren’t overly strict, but now it’s a different story. This is evident in tax interpretations issued to Ukrainian IT professionals working remotely from Poland for Ukrainian companies. Tax authorities are now more inclined to invoke the ‘establishment’ definition, requiring these individuals to pay taxes in both Poland and Ukraine. (…)
tax advisor Piotr Sekulski, PhD
(…) This means that Ms. Barbara should pay taxes in both Poland and Portugal, as required by the laws of each country. Subsequently, depending on the tax regulations in a given state, it is possible to partially deduct amounts already paid in one country. I was surprised that the IT professional approached Polish authorities about her tax obligations in Portugal. If she wanted clarification, she should have consulted Portuguese tax authorities. (…)
For more insights on foreign tax establishment or tax obligations for income earned abroad, visit us at www.outsourced.pl .
