Poland’s Flat Tax Set to Rise to 15%: Which Ukrainians Will Feel the Pinch.

Poland’s Tax System Under Review

According to Novyny.live: Poland’s Ministry of Finance is proposing a significant shift in tax rules that could hit Ukrainian entrepreneurs hard. Under the new plan, the flat tax rate (ryczałt) would jump from 8.5% to 15% for sole traders without employees whose annual income exceeds 100,000 PLN. This change would primarily affect freelancers, designers, consultants, IT specialists, and marketers—many of whom are Ukrainian nationals working in Poland. For context, Poland has become a top destination for Ukrainian entrepreneurs since the war began, with thousands registering businesses there.

The proposed reform also introduces new tax brackets for rental income. Specifically:

• A 17% flat tax on rental income between related companies;
• A 15% flat tax on rental profits exceeding 100,000 PLN between related companies.

Tax Rates for Individual Entrepreneurs

As of March 2026, Poland will have 14 public holidays. For individual entrepreneurs (sole proprietors), the current personal income tax scale in Poland is as follows:

• Up to 30,000 PLN – 0%,
• From 30,000 to 120,000 PLN – 12%,
• Above 120,000 PLN – 32%.

Additionally, a solidarity tax of 4% applies to income exceeding 1 million PLN. The simplified flat tax (ryczałt) currently offers rates of 3% for trade activities, 15–17% for legal and consulting services, and 8.5% or 12% for IT professionals.

These proposed changes could mark a pivotal step in Poland’s efforts to support entrepreneurs while adapting to evolving economic conditions. However, for Ukrainian business owners, the higher tax burden may force a rethink of their operations and cost structures.

The proposed tax adjustments could significantly impact the financial standing of Ukrainian entrepreneurs in Poland, especially those in creative and tech industries. Higher flat tax rates and new rules on rental income may compel professionals to revise their business models, cut expenses, or explore alternative markets and work arrangements to offset the increased tax load.