Ukrainians in Poland

Personal Income Tax

If a Ukrainian citizen meets the criteria of qualifying as a Polish tax resident, their entire income, regardless of the place of its generation, shall be taxable in Poland. A person qualify as a Polish tax resident in case he/she spends more than 183 calendar days in Poland in a calendar year or move their personal or business interests to Poland. Since meeting just one of these conditions is sufficient for tax residency status qualification, staying in Poland in excess of 183 days in 2022, even if the stay is caused by the war in Ukraine, may provide grounds to granting a person the status of a Polish tax resident. Please note that principles included in the Double Taxation Agreement concluded between Poland and Ukraine (“DTA”) should be taken into account. At the same time, pursuant to the provisions of Special Act on Assistance for Ukrainian Citizens, in the period from 24 February 2022 to the end of 2022 a Ukrainian citizen may confirm the moving of their personal interests to Poland just in the form of a written statement.

Please note, though, that even a Ukrainian citizen who does not fulfil the conditions of qualifying as a Polish tax resident may be taxed in Poland in relation to income generated from work performed in the territory of Poland (e.g. when working remotely for a Ukrainian employer) or to other income derived from sources located in Poland. DTA includes certain protection rules, but they do not apply if certain thresholds are exceeded. For example, people working on Ukrainian employment contracts and staying in Poland for longer than 183 days in 2022 cannot apply the protection provided for in DTA.

Consequently, despite the extraordinary circumstances faced by Ukrainians this year, individuals who have moved to Poland and generated income when performing work here (e.g. being employed by a Ukrainian enterprise and staying more than 183 days in Poland) or working as sole proprietors in Poland, may be taxed with Polish PIT.

Please note that so far no specific tax exemptions have been introduced in Poland in respect to the above. The Ministry of Finance has announced that the method of determining such criteria as the place of personal interests shall be flexible this year; nevertheless, no declarations have been made with regard to tax exemptions for Ukrainians who stay in Poland, or suspension of any objective criteria, such as the stay period as indicated above (183 days).

Social insurance

Ukrainians working directly for Polish employers are in principle subject to the social insurance obligation in Poland. Those employed by Ukrainian companies or working as sole proprietors are in a different position.

Since Poland and Ukraine have concluded a social insurance agreement, it should determine terms and conditions regarding social insurance. In this case, no special principles have not been implemented, either.

In line with the general principle as set in the social insurance agreement, the related premiums should be paid in the state in which the work or services are performed. This may mean that Ukrainian employers are formally obliged to register in Poland for social insurance purposes. If, however, the Ukrainian party obtains an appropriate certificate regarding its employee, the person may remain insured under the Ukrainian system while working in Poland. Such certificate may be obtained unilaterally by the Ukrainian party (e.g. when an employee is seconded to Poland for a period of up to 24 months), or may require an approval of Polish Social Insurance Institution (ZUS), e.g. when no exception provided for in the agreement applies, but the insurance institutions of both states agree on an exceptional treatment of a person or group of persons. No precise guidance regarding the approach to Ukrainians who relocated to Poland due to the war has been presented by ZUS so far.

PESEL and UKR status: retaining the rights granted by the Special Act

Changes in the status of Ukrainian citizens staying in Poland result from the amendments to the Special Act on Assistance for Ukrainian Citizens introduced in July 2022 and from former provisions thereof that projected a change in the status of its beneficiaries after pre-determined deadlines.

In principle, Ukrainian citizens who leave Poland for longer than one month shall lose the rights granted by the Special Act. The amendments clarify the status of a person who, having formerly obtained the “UKR status”, left Poland. Once the Border Guard Head provides information that such a person has left Poland for more than one month, the “UKR status” shall automatically change to “NUE status”. The same will happen if a Ukrainian citizen provides documents confirming the filing of an application to legalize their stay, following which the Special Act will not apply, or has filed an application for the international protection.

The amendments to the Special Act oblige the Border Guard Head to inform ZUS about Ukrainian citizens covered by that Act who leave Poland for more than one month, which includes both crossing the internal and external borders of the Schengen Area. A person may regain their “UKR status”. Therefore, in practice, Ukrainian citizens who left their country because of the war do not lose the rights granted by the Special Act, provided that their return to Poland is also caused by the war. The provision regarding the losing of the rights granted by the Special Act after a month of absence does not apply to persons who are temporary posted to perform work or services outside the territory of Poland by entities operating in Poland.

Access to the labour market

Current regulations provide Ukrainian citizens with free access to the Polish labour market if they work for Polish employers. In order to enjoy the right, a person must have legalized their stay with permits and visas obtained prior to the war outbreak or have been qualified by the provisions of the Special Act. As before, an employer is obliged to notify the County Labour Office competent for its registered office about having employed a Ukrainian citizen within 14 days of the employment commencement. The above regulation has been clarified: actual working hours cannot be shorter than those indicated in the notification, and the actual pay cannot be lower than the rate indicated therein. The notification obligation does not apply to Ukrainian citizens having free access to the Polish labour market based on the provisions of the Act on Promotion of Employment and Labour Market Institutions.

People working in Poland under Ukrainian employment contracts are treated differently. Foreign employers cannot notify County Labour Offices in line with the Special Act; therefore, Ukrainians working under foreign employment contract do not have full access to the labour market as provided for in the Special Act. In case of individuals formally posted to work in Poland, provisions of the Act on Promotion of Employment and Labour Market Institutions apply that may require the obtaining of a work permit and a residence document to allow the legal performance of work. If the work is not performed as part of a formal posting, which may be the case with regard to Ukrainians who have fled from Ukraine as a result of the war, the conditions of remote work performed in Poland and its performance without a work permit must be analysed.

Legal stay in Poland

The Ukrainian citizens covered by the Special Act are considered to legally stay in Poland during the 18 months following 24 February 2022. During this period, they are granted the temporary protection status in Poland.

Ukrainian citizens granted the temporary protection status in Poland under the Special Act may apply for a temporary stay permit. Such an application, though, may be filed only when nine months have passed after the date of their arrival in Poland caused by the war in Ukraine, no later, though, than by the end of the 18-month period indicated above.

The period in which the Ukrainian citizens who arrived in Poland following the outbreak of the war may file their applications shall commence on 24 November 2022. As of this date, these persons shall be able to file individual applications for temporary stay permits. Certain aspects of this permit type have been regulated by the Special Act; in cases nor regulated therein, provisions of the Act on Foreigners apply.

The key features of a temporary stay permit Ukrainian citizens will be able to apply for:

1. Issued once, for a three-year period;
2. To be approved by the Province Governor competent for the place of applicant’s stay. If the person moves during the process, the change of their address shall not affect the competence of the Province Governor;
3. The procedure is limited to a single instance; therefore, a decision issued shall be final and binding;
4. An Ukrainian granted with such a permit shall be entitled to perform work in Poland without a separate work permit.
5. An application may be denied only if:
   1. The deadline of filing is not kept;
   2. The person concerned is listed in official register of foreigners, whose residence on the territory of Poland is undesirable;
   3. Justified by factors regarding defence, state security or public security and order.

Ability to travel

In July 2022 the Ministry of Interior and Administration and the European Commission signed an agreement regulating the ability of Ukrainian citizens to move within the Schengen Area. The Special Act beneficiaries may use the diia.pl electronic document in the mObywatel mobile application. In order to obtain the document, they need to be assigned a personal identification (PESEL) number with the UKR status and create an Entrusted Web Profile (Profil Zaufany). The Entrusted Web Profile is available for adults and children above 13 years of age; therefore, mObywatel and the diia.pl certificate do not apply to children under 13.

The electronic document accompanied with a valid passport allows:

1. Crossing external EU and internal Schengen Area borders;
2. Staying in the territory of Poland during its validity period;
3. Staying in other Schengen states for up to 90 days during the last 180 days.

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Bearing in mind the legal regulations discussed above, the position of Ukrainian citizens who moved to Poland in 2022 may require special attention as they may be bound by specific tax and other legal obligations. We are ready to present our offer of support in determining these obligations and ensuring their proper performance.