IMPACT – MEDIUM

What is the change? Poland has changed its procedures for non-EU employees to receive a tax identification number.

What does the change mean? The PESEL number, an 11-digit number used for identification purposes, will no longer be issued automatically in the immigration process.

  • Implementation timeframe: Immediate.
  • Visas/permits affected: Work permits and residence permits.
  • Who is affected: Non-EU nationals applying for work and residence permits.
  • Impact on processing times: Workers who need to apply for a tax identification number must do so through a separate process that takes approximately two weeks.
  • Business impact: The new process creates a separate step for non-EU workers who require a tax identification number.
  • Next steps: Employers may contact their BAL attorney to coordinate applying for an NIP number.

Background: As of March 1, non-EU residents in Poland are no longer entitled to a PESEL number. EU nationals will continue to receive the PESEL number.

Previously, the number was issued automatically when foreign workers registered their local address and was the final step in the residence process. The PESEL number is an ID number granted to all Polish residents and is used to access services at government offices, banks, hospitals and for tax purposes. A different type of number is now being issued for tax purposes, called an NIP, or “tax identification number.” This number is now required for non-EU workers on local contracts whose salary is paid in Poland, but not for assignees posted to Poland.

BAL Analysis: Non-EU nationals will no longer receive a PESEL number and will have to use their passports for daily identification purposes. Those workers on local contracts who are liable for taxes must apply for an NIP number. BAL can assist employers and foreign employees in this process.

This alert has been provided by the BAL Global Practice group and our network provider located in Poland. For additional information, please contact your BAL attorney.

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