Polish listed firms face 38% effective tax rate as domestic groups pay more than foreign peers

Surge in effective corporate taxation

The average effective tax rate paid by the largest capital groups listed on the Warsaw Stock Exchange reached 38% in 2025, according to a report by consultancy Grant Thornton. The figure represents an increase of 10 percentage points over a four-year span, rising to double the statutory corporate income tax (CIT) base rate of 19%. Between 2012 and 2018, the average effective rate for listed groups was slightly over 22%. The current burden means that listed companies dedicate more than one-third of their income to the state budget, which affects pricing structures for consumer products and services. Smaller enterprises represented in the sWIG80 index faced an even higher effective rate of 43% in 2025, surrendering nearly half of their income to public coffers.

Marcin Mrowiec, chief economist at Grant Thornton, pointed to upcoming statutory revisions as a barrier to near-term tax relief:

Taking into account the potential introduction from 2027 of an increase in the basic CIT rate from 19 percent to 22 percent for taxpayers with revenues over 50 million euros, it is difficult to count on reversing the trend of growing tax burdens next year.

Ownership structure and sector disparities

The tax burden varies across corporate ownership models and industry sectors. State-owned capital groups recorded an effective tax rate of 45% in 2025, exceeding the level seen among private businesses. Domestic companies also carry a higher effective burden than foreign-owned groups, reversing historical patterns where foreign firms paid higher taxes. In 2025, the effective rate for domestic entities climbed to 39% from 34% in 2024, widening the gap with foreign-owned entities to 7 percentage points compared to a 3 percentage point difference in 2024.

Sector-specific obligations diverge based on capital intensity, regulatory exposure, and write-down risks. The highest tax burdens fall on the energy, apparel, footwear, fuel and gas, chemical, and banking sectors. Conversely, video game producers paid an average effective rate of 11% in 2025. This lower rate stems from tech firms utilizing statutory tax incentives, including research and development (R&D) allowances, IP Box provisions, and specialized innovation relief schemes.

Regulatory instability and budgetary pressure

Business organizations identify systemic complexity and policy instability as primary obstacles for corporate financial planning. Companies struggle to forecast future cash flows, operational results, and capital investments due to unpredictability in annual tax liabilities. Michał Borowski, director of the regulatory dialogue department at the Business Centre Club, criticized the legislative approach to closing fiscal gaps:

This is not how tax law should be created. Especially law that evidently hits companies. Of course I understand the budgetary needs. I also understand the risk of exceeding constitutional debt thresholds, but this risk has been known for a long time and as the Business Centre Club we warned against such consequences. Unfortunately, many things are done at the last minute, which in my assessment will only worsen the country's budgetary situation.

With public deficits elevated and sovereign debt servicing costs mounting, pressure to expand state revenues will persist across Poland's fiscal landscape for multiple years. Mariusz Tkaczyk, partner at GWW Legal & Tax, outlined the operational measures confronting Polish corporate management:

One can expect primarily actions directed at the largest entities and selected sectors, further limitation of preferences, broadening of tax bases, and intensification of audits supported by the digitization of settlements.

Tkaczyk added that while an across-the-board CIT increase faces political hurdles, corporate executives should anticipate that overall tax liabilities will not decrease in upcoming fiscal cycles.