Comparison of personal (PIT) and corporate income (CIT) and value added tax (VAT) rates in different countries
Table compares rates of personal (PIT) and corporate (CIT) income and value added (VAT) tax rates in different countries.

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# Taxes over the world: PIT, CIT, VAT#

 Country Flag Personal Income Tax rate (PIT) Corporate Income Tax rate (CIT) Basic Value Added Tax rate (VAT) Review date Afghanistan 20% 20% 0% 2020 Albania 23% 15% 20% 2020 Algeria 35% 26% 19% 2020 Angola 17% 30% 10% 2020 Antigua and Barbuda 0% 25% 15% 2020 Argentina 35% 30% 21% 2020 Armenia 23% 18% 20% 2020 Aruba 52% 25% 2% 2020 Australia 45% 30% 10% 2020 Austria 55% 25% 20% 2020 Bahamas 0% 0% 12% 2020 Bahrain 0% 0% 5% 2020 Bangladesh 30% 25% 15% 2020 Barbados 28.5% 5% 17.5% 2020 Belarus 13% 18% 20% 2020 Belgium 50% 25% 21% 2020 Bermuda 0% 0% 0% 2020 Bosnia and Herzegovina 10% 10% 17% 2020 Botswana 25% 22% 12% 2020 Brazil 27.5% 34% 18% 2020 Bulgaria 10% 10% 20% 2020 Cambodia 20% 20% 10% 2020 Canada 33% 26% 5% 2020 Cayman Islands 0% 0% 0% 2020 Chile 40% 25% 19% 2020 China 45% 25% 13% 2020 Colombia 39% 32% 19% 2020 Costa Rica 25% 30% 13% 2020 Croatia 36% 18% 25% 2020 Cyprus 35% 12% 19% 2020 Denmark 55.89% 22% 25% 2020 Dominica 35% 25% 15% 2020 Dominican Republic 25% 27% 18% 2020 Ecuador 35% 25% 12% 2020 Egypt 22.5% 22% 14% 2020 El Salvador 30% 30% 13% 2020 Estonia 20% 20% 20% 2020 Fiji 20% 20% 9% 2020 Finland 56.95% 20% 24% 2020 France 45% 32% 20% 2020 Georgia 20% 15% 18% 2020 Germany 45% 29% 19% 2020 Ghana 30% 25% 18.13% 2020 Gibraltar 25% 10% 0% 2020 Greece 44% 24% 24% 2020 Grenada 28% 28% 15% 2020 Guatemala 7% 25% 12% 2020 Guernsey 20% 0% 0% 2020 Honduras 25% 25% 15% 2020 Hungary 15% 9% 27% 2020 Iceland 46.24% 20% 24% 2020 India 42.74% 30% 18% 2020 Indonesia 30% 25% 10% 2020 Iraq 15% 15% 0% 2020 Ireland 48% 12% 23% 2020 Isle of Man 20% 0% 20% 2020 Israel 50% 23% 17% 2020 Italy 43% 27% 22% 2020 Jamaica 25% 25% 16.5% 2020 Japan 55.95% 29% 10% 2020 Jersey 20% 0% 5% 2020 Jordan 30% 20% 16% 2020 Kazakhstan 10% 20% 12% 2020 Kenya 30% 30% 16% 2020 Kuwait 0% 15% 0% 2020 Latvia 31.4% 20% 21% 2020 Lebanon 25% 17% 11% 2020 Lithuania 20% 15% 21% 2020 Luxembourg 45.78% 24% 17% 2020 Macedonia, the former Yugoslav Republic of 10% 10% 18% 2020 Malawi 30% 30% 16.5% 2020 Malaysia 30% 24% 10% 2020 Malta 35% 35% 18% 2020 Mauritius 15% 15% 15% 2020 Mexico 35% 30% 16% 2020 Mongolia 10% 25% 10% 2020 Montenegro 9% 9% 21% 2020 Morocco 38% 31% 20% 2020 Mozambique 32% 32% 17% 2020 Namibia 37% 32% 15% 2020 Netherlands 49.5% 25% 21% 2020 New Zealand 33% 28% 15% 2020 Nicaragua 30% 30% 15% 2020 Nigeria 24% 30% 7.5% 2020 Norway 38.2% 22% 25% 2020 Oman 0% 15% 0% 2020 Pakistan 35% 29% 17% 2020 Panama 25% 25% 7% 2020 Papua New Guinea 42% 30% 10% 2020 Peru 30% 29% 18% 2020 Philippines 35% 30% 12% 2020 Poland 32% 19% 23% 2020 Portugal 48% 31% 23% 2020 Puerto Rico 33% 37% 11.5% 2020 Qatar 0% 10% 0% 2020 Romania 10% 16% 19% 2020 Saint Kitts and Nevis 0% 33% 17% 2020 Saint Lucia 30% 30% 12.5% 2020 Saint Vincent and the Grenadines 30% 30% 16% 2020 Samoa 27% 27% 15% 2020 Saudi Arabia 0% 20% 15% 2020 Senegal 40% 30% 18% 2020 Serbia 10% 15% 20% 2020 Sierra Leone 15% 30% 15% 2020 Singapore 22% 17% 7% 2020 Sint Maarten (Dutch part) 48% 35% 5% 2020 Slovakia 25% 21% 20% 2020 Slovenia 50% 19% 22% 2020 South Africa 45% 28% 15% 2020 Spain 45% 25% 21% 2020 Sri Lanka 24% 28% 8% 2020 Sudan 15% 35% 17% 2020 Sweden 32.28% 21% 25% 2020 Switzerland 40% 21% 7.7% 2020 Tanzania, United Republic of 30% 30% 18% 2020 Thailand 35% 20% 7% 2020 Trinidad and Tobago 25% 30% 12.5% 2020 Tunisia 35% 25% 18% 2020 Turkey 40% 22% 18% 2020 Uganda 40% 30% 18% 2020 Ukraine 18% 18% 20% 2020 United Arab Emirates 0% 0% 5% 2020 United Kingdom 45% 19% 20% 2020 United States 37% 25% 0% 2020 Uruguay 36% 25% 22% 2020 Venezuela, Bolivarian Republic of 34% 34% 16% 2020 Vietnam 35% 20% 10% 2020 Yemen 15% 20% 5% 2020 Zambia 37.5% 35% 16% 2020 Zimbabwe 40% 24% 14.5% 2020

• Name VAT stands for "Value Added Tax". It's a kind of tax, which is added at all production stages.
• VAT is intended to apply to consumption. The more goods you buy, the more VAT you pay.
• VAT is payed by a person who is at the end of the consumption chain, buying the product for consumption. For example, a customer buying crisps in the supermarket or the driver using the car wash.
• Formally, the same amount of VAT is also added at the each stage of the chain (supermarket, car wash, a manufacturer of chips, etc.), but in fact they only pay back tax received from the previous stage. Finally, the VAT paid by the consumer goes "from hands to hands" - through supermarket, the manufacturer of chips, potato farmer etc. - until it goes to the tax office.
• Trader, who simultaneously buys (pays VAT) and sells goods (receives VAT), doesn't really pay VAT. The amount of tax charged while buying is canceled by tax charged while selling.
• The disadvantage of VAT is that it increases social stratification - it's applied to the final consumer, so it is most noticeable to the least wealthy people. This issue is partially solved by varying tax rates for example by setting lower VAT levels to the most basic goods like bread. It's also considered that procedures for charging and collecting VAT are too complex and they allow for many forms of abuse, for example fake invoices fraud to claim back VAT which was never really paid.

# CIT in Poland#

• Corporate Income Tax (CIT) is a income tax paid by legal persons.
• CIT in Poland is paid by joint-stock companies (polish: S.A.) or limited liability companies (polish: sp. z o.o.).
• The legal basis regulating the CIT in Poland is the Act of February 5, 1992 (Journal of Laws of 2019, item 865) with later changes.
• The basic CIT rate in Poland is currently 19% (as of 2019).
• In addition, from January 1, 2019, companies whose gross turnover did not exceed the equivalent of 1,2 million EUR (the so-called small taxpayers) can switch to preferential CIT rate in the amount of 9%.
• If you're looking for Polish PIT rates (personal income tax) you can check out our other calculator: PIT rates in Poland (archive).
• If you're interested in comparison of tax rates (PIT and CIT) in different countries check out our other calculator: Taxes over the world: PIT, CIT, VAT.

# PIT in Poland#

• Currently (as of 2020), taxpayers who settle on general rules are subject to the so-called tax thresholds. This means that the tax rate (percentage) depends on achieved incomes. Until September 2019, income below 85 528 PLN was taxed with 18% rate. Starting from October 2019 the rate for the first threshold was reduced to 17%. Income above this amount is taxed with 32% rate.
• ⚠ WARNING! Because the tax rates changed during the tax year, the annual settlement for income earned during 2019 should use effective 17.75% tax rate:
$\frac{9}{12} \times 18\% + \frac{3}{12} \times 17\% = 17.75\%$
• The tax base (ie the amount from which the tax is calculated) is the sum of revenues obtained in a given year decreased by social insurance contributions (polish: ZUS) and costs of getting incomes.
tax base = gross earnings - social insurance - cost of getting income
• There is a tax-free amount in the Poland, from which we will not pay any tax. In this case, the final tax would be slightly lower than it would appear from the tax thresholds alone.
• Before 2017 year the tax-free amount was fixed (in 2009-2016 it amounted to 3091.00 PLN) and was entitled to all taxpayers using general rules.
• Starting from 2017, the tax-free amount depends on income, in such a way that the taxpayers with very small income are fully covered, then the tax-free amount is gradually reduced as revenue increases.
• In practice, the so-called tax reduction amount is more common, when calculating income tax (PIT). This is the effective amount that should be deducted from the tax already calculated, to apply the allowance associated with the tax-free amount.
• To calculate the tax for 2019 year, use the below formula:
• in the case of income below 85 528 PLN:
tax = 17.75% × tax base - tax reduction amount
• in the case of an income of 85 528 PLN or more :
tax = 15181.22 PLN + 32% × (tax base - 85528 zł) - tax reduction amount
• To calculate the tax for 2020 year, use the below formula:
• in the case of income below 85 528 PLN:
tax = 17% × tax base - tax reduction amount
• in the case of an income of 85 528 PLN or more :
tax = 14539.76 PLN + 32% × (tax base - 85528 zł) - tax reduction amount
• To calculate the tax reduction amount for income earned in 2019 or 2020 year, use the following formula:
• in case of income in the amount of 8000 PLN or less:
tax reduction amount = 1420 PLN,
• in case of income from 8001 PLN to 13000 PLN:
tax reduction amount = 1420 PLN - 871.70 PLN × (tax base - 8000 zł) / 5000 zł,
• in case of income from 13001 PLN to 85528 PLN:
tax reduction amount = 548.30 PLN,
• in case of income from 85529 PLN to 127000 PLN:
tax reduction amount = 548.30 PLN - 548.30 PLN × (tax base - 85528 zł) / 41472 zł,
• in case of income above 127000 PLN there is no tax-free amount, so tax reduction amount is 0.
• In addition, tax should be decreased by health insurance (polish: NFZ), but not more than 7,75% of the basis.
⚠ WARNING! Health insurance contributions (polish: NFZ) are deducted from already calculated tax, instead of tax base like in case of other expenses.
• Starting from August 2019, people under 26 y.o. in Poland do not need to pay income tax (PIT).
In 2019, the tax-relief covers annual revenues up to 35636.67 PLN, and from 2020, this limit will be increased to 85528 ​​PLN. Revenues exceeding the annual limit remain taxed using tax-scale.