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 2022) taxpayers who settle accounts on general rules are subject to the so-called tax thresholds. This means that the rate (percentage) of the tax depends on the achieved incomes.
• At the beginning of 2022, after the so-called "Nowy Ład" (en: "New Deal") entered into force, the thresholds have been changed, so that income below 120 000 PLN is taxed at 17%. Starting from July 2022 the rate of the first threshold will be reduced to 12%. Income above this amount is taxed at 32% rate (before and after July 1). This means that for the first six months we should count advances on income tax according to the scale of 17% and 32% (before July 1, 2022), and in the second - 12% and 32% (after July 1, 2022).
• In Poland, there is a free amount (tax allowance), on which we will not pay tax. For this reason, the final tax will be slightly lower than it would appear from the thresholds. In 2022 the tax-free amount is 30 000 PLN.
• The tax base (i.e. the amount on which the tax is calculated) is the sum of revenues obtained in a given year decreased by social insurance contributions contributions (polish: ZUS) and costs of getting incomes:
tax base = gross earnings - social insurance - cost of getting income
⚠ WARNING! Beginning from 2022 (→ see "Nowy Ład") we cannot decrease tax by health insurance contribution if we use tax thresholds (general rules).
• Despite the fact that the method of calculating the monthly tax advance changes during the year, the annual tax for 2022 year will be calculated in the unified way i.e. using 12% and 32% rates for the whole year. To calculate annual tax for income earned in 2022 use the following formula:
• if your tax base does not exceed 120 000 PLN:
$12\% \times \text{tax base} - 3600$
• if your tax base exceeds 120 000 PLN:
$1440 + 32\% \times (\text{tax base} - 120000)$
• Because so-called "Polski Ład" (en: "New Deal") introduced in 2022 caused a decrease in the net salaries of selected groups (on-the-hand), the polish rulers introduced the so-called relief for the middle class. This is the amount that should be subtracted from the tax base when calculating the monthly tax advances from January to June 2022 inclusive. However, the rulers gave up this idea and we should stop including this relief after July 1, 2022. To calculate the middle class relief, the we use following formula:
• do not exceed 5 700 PLN - no discount,
• are in the range from 5701 PLN to 8549 PLN:
$\text{middle class tax relief} = \frac{\text{gross monthly earnings} \times 0.0668 - 380.5}{0.17}$
• are within the range from 8550 PLN to 11141 PLN:
$\text{middle class tax relief} = \frac{\text{gross monthly earnings} \times (-0.0735) + 819.08}{0.17}$
• exceed 11141 PLN - no relief.
• 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. In 2020, 2021 and 2022 tax-relief covers annual revenues up to 85528 ​​PLN. Revenues exceeding the annual limit remain taxed using tax-scale.