According to the Polish tax legislation, representative offices in the form of branch offices are allowed to conduct certain business activities and therefore are liable for corporate income tax. A foreign subject is presumed to provide foreign trade services in Poland if it sells its products to Polish customers and has established in Poland a representative office. This means that all transactions are presumed to arise as a result of the representative office's activities, even if it is not empowered to sign and conclude contracts.
This presumption is modified by double taxation treaties. If the representative office satisfies the tests set out in the applicable treaty such that it is not considered a permanent establishment, it is exempted from corporate income tax.
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