New procedures to obtain tax ID number now cover all foreign nationals
What is the transition? Poland has now stopped immediately providing tax ID numbers to both EU and non-EU nationals.
What does the change mean? All foreign workers who require a tax ID number, including EU nationals, must follow separate procedures to acquire the number. In the past, an ID number (PESEL) that also served as a tax ID number was issued to foreign residents in the immigration process.
- Implementation time frame: Immediate.
- Visas/permits affected: Work permits and residence permits.
- Who is affected: All foreign employees who are subject to taxes and require a tax number.
- Impact on processing times:Estimated processing time to obtain the tax number is two weeks.
- Business impact: The new process adds an administrative burden and costs to employers and foreign nationals who require a tax identification number.
- Next steps: Foreign employees who have signed a local employment contract and are paid in Poland must take steps to apply for an NIP number which will be required to settle taxes.
Background: Last month, Poland stopped issuing PESEL numbers to non-EU nationals. Polish authorities have now stopped issuing the number to EU nationals.
The PESEL number is an 11-digit number used to access services at government offices, banks, hospitals and for tax purposes. In the past, the number was issued automatically when a foreign worker registered their local address. A different type of number is now being issued in lieu of the PESEL, called an NIP or “tax identification number.” This involves a separate process for foreign nationals outside of the immigration procedures.
AtoZ Serwis Plus Analysis: The change will not affect foreign assignees posted to Poland, but will affect all foreign nationals working on local contracts with a Polish employer. Companies should be aware that even EU nationals will no longer receive a PESEL number automatically and must take steps to apply for an NIP number.
