Since the early 90s of the 20th century the Polish tax system has been developing gradually. The purpose is to encourage foreign investors to invest in Poland, and as a consequence to create new places of employment. To gain it, the corporate income tax rate was reduced from 40% to 19% and relatively low labour costs. There are only 5 lower than in Poland expenditures on labour among the countries of Central and Eastern Europe. The valorisation of tax thresholds in PIT, the tax-free amount and costs of revenue costs were reintroduced in 2007. Since 2009 there has been a new tax scale with two tax rates 18% and 32%, one tax threshold of the amount of 85.528 PLN and the amount decreasing the tax – 556,06 PLN. The reform of the tax system was determined adaptation of the Polish law to the law of the European Union. As a consequence the Polish tax law was harmonized and coordinated in some parts with the EU tax law. In Poland, like in other countries of the European Union or OECD, different tax exemptions (deductions) are applied. However, there is a tendency to reduce them. On the other hand all tax liabilities should be decreased. The tax system has become clearer and more simplified. Furthermore, the collection of taxes is simplified for taxpayers.

The tax legislation consists of:

• The Constitution of the Republic of Poland;
• Acts referring to personal income tax, the corporate income tax, goods and services tax (VAT) and other taxes with executive acts;
• Tax Ordinance Act of 1997 with amendments .

The Polish tax system consists of the following taxes:

1. direct:
• personal income tax - PIT,
• corporate income tax - CIT,
• tonnage tax,
• inheritance and donation tax,
• tax on civil law transactions,
• agricultural tax,
• forest tax,
• real property tax,
• transport vehicles tax,
• tax on extraction of certain minerals.

2. indirect:
• VAT,
• excise duty,
• gambling tax.