Posting employees abroad – tax settlements in Poland, social security and employer obligations

Posting employees abroad as part of service provision requires detailed knowledge of employer obligations regarding tax settlements, social security contributions and the interpretation of labour law in an international context. Below we set out the key regulations in force at the turn of 2025 and 2026.

What is global mobility and the posting of employees?

Global mobility refers to the international movement of personnel between different locations within a company’s operations. It encompasses the posting of an employee abroad – i.e. the temporary secondment of an employee to work in another EU Member State, European Economic Area country or Switzerland, where the employee retains their employment relationship with the Polish employer and returns to Poland upon completion of the posting period. Other forms include remote work from abroad and international contracts.

Tax residency is of key importance. A Polish tax resident is a person whose centre of vital interests is in Poland (family, primary income) or who stays in Poland for more than 183 days per year.

An important addition: In practice, resident status may be acquired even before the 183-day threshold is reached, if the centre of vital interests (e.g. permanent home) is transferred to Poland. A resident is subject to tax on their worldwide income in Poland, whereas a non-resident is taxed only on income from Polish sources.

Posting of employees – types and employer obligations

Short-term and long-term posting

The rules on posting are governed by three EU directives: 96/71/EC, 2014/67/EU and (EU) 2018/957. In Poland, the key legislation is the Act on the Posting of Workers in the Framework of the Provision of Services.

• Posting of up to 12 months requires the employer to ensure the minimum working conditions of the host country (including rest periods, leave, overtime rates and health and safety).
• After exceeding 12 months (with the option of extension to 18 months upon notification to the National Labour Inspectorate), the employer must apply all employment conditions of the host country. It is important to note that posting periods for the same position are cumulative, even where successive employees fill the role or where they are sent by a temporary work agency.

Form A1 – employer obligation

Form A1 confirms that, during work in another country, the employee is subject to Polish social insurance. This means that social insurance contributions are paid in Poland for a maximum of 24 months. The application must be submitted exclusively electronically via the PUE ZUS (eZUS) platform using form US-3. The absence of the certificate results in severe financial penalties imposed by foreign inspection authorities (e.g. the French SIPSI or the German Zollamt).

Double taxation treaties (DTTs) and the 183-day rule

Double taxation treaties determine the rules for taxing the remuneration of posted employees. Typically, Article 15 of a DTT provides that remuneration is taxed in Poland if, cumulatively: the employee is present in the country of work for no more than 183 days, the remuneration is paid by a Polish employer, and the employer has no permanent establishment abroad.

Note on the MLI Convention: Many treaties (e.g. with the United Kingdom, Norway and Belgium) have been amended. The exemption with progression method has been replaced in these treaties by the proportional credit method, which changes the way income is reported on the PIT-11 form and requires the employee to settle tax in their annual return. The method of counting the 183 days may also differ (calendar year vs any 12-month period) – this should be verified in the specific treaty.

Per diems for posted employees and business travel

Per diems are payable in the case of a business trip. In the case of a permanent posting, the employee receives their basic salary without per diems, unless the contract provides otherwise. Supreme Administrative Court (NSA) rulings from 2023–2024 (including II FSK 270/21) held that the provision of transport and accommodation for posted employees does not constitute taxable income for those employees.

Daily per diem rates for international travel (PIT and social security exemption limits) for 2026:

• Germany: EUR 49
• Netherlands: EUR 50
• France: EUR 55
• Norway: NOK 450
• Sweden: EUR 45
• United Kingdom: GBP 45

Employing non-residents in Poland – withholding agent obligations

The employer, acting as a withholding agent, collects advance income tax payments on a non-resident’s income from Polish sources. Where work is performed in Poland for a Polish entity, the concept of the so-called economic employer applies, which gives rise to an obligation to issue a PIT-11 form.

Where a non-resident presents a certificate of residency and the applicable treaty provides for taxation only in the country of residence, the employer may refrain from collecting advance tax payments and instead submit form IFT-1R by the end of February. It should be noted, however, that the certificate must be current and cover the period during which the income was earned.

Employment contract vs civil law contract with a non-resident

Under an employment contract, the employer always acts as a withholding agent (unless a DTT and certificate of residency exempt the income from tax). Under a civil law contract, the principal acts as a withholding agent if the work is performed on Polish territory. As regards social security, nationals of third countries generally require full contributions to be paid, unless Poland has concluded a social security agreement with the relevant country (e.g. with Ukraine).

Common errors and tax risks

The most common errors include:

• Incorrect determination of residency (failure to verify the centre of vital interests).
• Application of double taxation relief methods without taking into account the changes introduced by the MLI.
• Absence of a current certificate of residency when applying exemptions.
• Failure to maintain accurate records of days of presence and place of work.

Summary and good practices

Key obligations include obtaining Form A1, monitoring posting periods (12, 18 and 24 months) and correct reporting on PIT-11 and IFT-1R forms. The following are recommended:

1. Maintaining a detailed “travel calendar”.
2. Periodic verification of residency status (particularly in the case of hybrid working).
3. Archiving employees’ declarations regarding their personal situation.

In cases of doubt regarding the posting of employees abroad or the employment of non-residents, we recommend consulting a tax adviser specialising in international employee mobility.

Sources:

• EU Directives 96/71/EC, 2014/67/EU, 2018/957;
• Act on the Posting of Workers;
• EU Regulation 883/2004;
• Personal Income Tax Act;
• MLI Convention;
• ALTO own publications 2025.

Legal status: January 2026