Running your own business and doing what you love is probably the dream of every modern person. However, the more you start generating revenue, the more you have to pay to the state treasury. For example, in Poland, entrepreneurs on average pay about 20% of the firm's income. That is why businessmen often think about how they can reduce deductions for taxes.
Do you want to know actual and working methods? Optimizing tax expenses does not mean avoiding them. IMPORTANT: in this article we only talk about honest methods that are absolutely legal under Polish law. Next, we will tell you about three relevant options for optimizing tax expenses for entrepreneurs in Poland!
What does the term «tax optimization» mean?
We suggest starting this article with a detailed and simple explanation of what tax optimization is and how it differs from evasion. Tax optimization is a process of planning and implementing strategies aimed at reducing the tax liabilities of an entrepreneur within the limits of the law. The goal of such optimization is to minimize the tax burden without violating Polish tax law. Optimization may include the selection of the most appropriate form of doing business, the use of benefits and exemptions, as well as the competent allocation of income and expenses.
It is important to understand that tax optimization is different from tax evasion, which is illegal. Optimization involves the use of legitimate opportunities and mechanisms provided for by the current legislation. As a result, entrepreneurs can reduce their tax expenses, increase profits and ensure business sustainability.
Option #1. Establishment of a company abroad
One of the most popular ways of tax optimization is to register a company outside Poland in jurisdictions with a more favorable tax regime. Simply speaking – opening offshore companies. Many countries offer favorable conditions for foreign companies, such as reduced tax rates, no tax on dividends or special tax regimes for holding companies.
This approach allows entrepreneurs to minimize tax liabilities and receive additional benefits associated with simplified tax administration. However, it should be borne in mind that registering a company abroad requires a detailed analysis of local legislation, as well as compliance with all international rules, including double taxation treaties.
For successful application of this method, it is important to engage international tax planning specialists who will help to develop an optimal strategy that meets business objectives and legal requirements.
Option #2. Utilization of possible tax benefits
Poland has a number of tax incentives and support programs for entrepreneurs that can significantly reduce the tax burden. One popular tool is the use of tax credits and deductions available for innovative companies and companies carrying out R&D activities.
Entrepreneurs can also take advantage of support programs aimed at stimulating investment, job creation or business development in certain sectors of the economy. In some cases, it is possible to apply reduced tax rates or full tax exemption for certain types of activities.
For effective utilization of tax incentives, it is recommended to conduct regular audits of tax expenditures and consult with tax law experts. This allows to identify all available opportunities to reduce the tax burden and implement them in the company's activities.
Option #3. Changing the form of taxation
Obviously, one of the options is to simply change the form of taxation. When registering a sole proprietorship (JDG) you chose one of the possible forms of taxation and most newcomers make a mistake here due to lack of knowledge. Generally, there are three main options today for those who are just registering a firm. Over time, your income and operational activities may change significantly, so we recommend that you reconsider your views on the form of taxation.
Up to PLN 120 thousand - 12%, after PLN 120 thousand - 32%.
The flat rate is 19%.
From 2 to 17% based on your field of activity.
Above are the current tax rates for sole proprietorships as of 2025. Now think about which option will be the most favorable for you now. Not many people know that you can easily change the form of taxation online. Do you want to know a step-by-step guide on how to do it? In our article, we told you more about how to change the form of taxation for individual entrepreneurs from the comfort of your own home.
Are there risks of tax optimization?
In fact, many entrepreneurs are concerned about the risks of tax optimization. We would like to emphasize once again - if you are not going to evade taxes or use illegal schemes, then you have nothing to worry about. Above in this article we have described only legal ways to reduce tax costs for businessmen from Poland.
If you are offered dubious schemes under the pretext of paying less to the tax office, most likely it is something illegal. In such a case, the tax office may be interested in your activities. In case of proof of tax evasion, you may be fined 4666 PLN according to Kodeks karny skarbowy. If your case is classified as a tax offense, then the punishment may be imprisonment. Therefore, we recommend using only proven and fully legal ways to reduce tax expenses.
Do you need personal assistance in opening a company, maintenance, tax optimization or are you considering related services? Experienced aksis agents will be happy to advise you and provide comprehensive assistance in any matter. Contact us in any convenient way to get a free consultation on your issue!
