Tax Warning for Ukrainians Working Remotely from Poland

Thousands of Ukrainians living in Poland while working for home-country firms face significant tax arrears, as authorities begin enforcing residency rules based on physical work location rather than employer nationality.

The Hidden Tax Trap

Since the outbreak of the war, thousands of Ukrainians have relocated to Poland, continuing their roles in IT, finance, and specialized services for Ukrainian companies. Many mistakenly believe that paying taxes in their home country satisfies their obligations, a misconception that frequently leads to mounting arrears, interest, and potential criminal liability.

Remote work for a company based in Kyiv or Lviv does not exempt individuals from Polish tax law. The Polish tax office prioritizes the physical location of work over the employer’s headquarters, often discovering these unpaid debts years later, complete with heavy financial penalties.

Understanding Tax Residency and the 183-Day Rule

A person becomes a Polish tax resident if they reside in the country for more than 183 days in a tax year or maintain a “center of vital interests” there, such as family presence or a rented apartment. Once residency is established, all worldwide income must be declared in Poland.

Paying taxes in Ukraine does not automatically grant relief from Polish obligations. Avoiding double taxation requires the formal application of international tax treaty mechanisms within an annual Polish tax return. Authorities may verify residency by auditing utility bills and mobile network contracts.

Legal Obligations and Compliance

According to the Personal Income Tax Act of July 26, 1991, individuals residing in Poland are subject to unlimited tax liability on their total income, regardless of the source. Those who do not have a place of residence in Poland remain subject to limited tax liability only on income generated within Polish territory.

Ignoring these regulations is a high-risk strategy. To mitigate financial sanctions, individuals should accurately calculate their stay duration, assess their center of vital interests, and submit overdue tax declarations. Proactive compliance before a formal audit is the only effective way to avoid severe fiscal penalties and resolve double taxation issues.