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Doing Business in Polandon or before 30 April of the year following the year of assessment.Tax-Free Government SecuritiesInterest payable on certain Government Securities issued by the Ministry of Finance isexempt from taxation for individuals.Taxation of Savings IncomeInterest income on cash deposits, bank accounts, and other savings is taxed at 19%flat rate for individuals.5.4 Social SecurityThe current rates of social security contributions are set out in Appendix 3.5.5 Indirect TaxesVATAs in most other states in the EU, Poland imposes value added tax (VAT) on the addedvalue in the goods and services supply chain. In economic terms VAT is borne by theultimate consumer and businesses are responsible for the administration and collection oftax.If a company is registered for VAT purposes it is entitled to deduct input tax from outputtax. If input tax exceeds output tax it may be set off against future VAT liabilities or claimedfrom the tax authorities. The general rule is that VAT returns are required on a monthlybasis, however, in certain circumstances they may be filed on a quarterly basis.There are at present four rates of VAT: 23%, 8%, 5%, and 0%, with the standard rate being23%. In case of sale of goods or services, VAT is calculated on the sales price. With theimport of goods, VAT is calculated on the customs value plus customs duty and excise tax.Exports are subject to a 0% rate. Intra-community supply of goods is also subject to a 0%rate. Certain goods and services are exempt from VAT.Customs DutiesPoland is a part of the EU customs area. Imports and exports are, in principle, regulatedby the EU Customs Code.In case of trade with non-EU countries customs duty arises on the customs value of manyimported goods. The customs value includes costs such as transport, packaging, andinsurance etc. The calculation of custom duty is complex and dependent on individualcircumstances.Under special measures the temporary use, storage and transport of imported goods inPoland are possible without paying customs duty upon the goods on arrival. For example,it is possible to bring goods into Poland under a temporary customs clearance and then reexportfree of customs duty. This applies to regular commercial transactions as well as topersonal effects of expatriate staff.Stamp DutyThe current rates of stamp duty applying to most transactions governed by civil law are0.1% - 2%. The stamp duty on the share capital upon establishment of a company is0.5%. The stamp duty on loans is 2.0%, while shareholders’ loans are exempt.15