18:34 20 April 2026
Flat tax from 2004, intending to stimulate economy, created more B2Bs
Poland introduced a flat 19% tax for sole proprietors in 2004 to boost entrepreneurship and economic growth. However, research shows it mainly encouraged tax optimization rather than creating new businesses or jobs. Many high earning professionals shifted from employment contracts to self employment to pay lower taxes, without hiring workers. After several years, most remained solo entrepreneurs. The reform reduced tax revenues from top earners and weakened the progressivity of the tax system, effectively benefiting higher income groups more than others.
It also created social risks, as self employed workers contribute less to pensions and benefits, potentially increasing future public costs and inequality in how different professions are taxed.
(pb.pl)
