New Group Eligible for Zero PIT: Polish Sejm Approves Tax Exemption for Sailors and Offshore Workers

The Polish Sejm has approved a new law that exempts sailors and workers in the offshore sector from income tax. This legislative change is designed to boost the competitiveness of Polish shipping companies and improve the overall working environment at sea.

The bill, which passed with overwhelming support (431 votes in favor, 4 abstentions, and none against), will now move to the Senate. The legislation amends several existing laws to support shipping enterprises and facilitate their operation under the Polish flag. It introduces a zero-income tax rate for sailors and offshore vessel workers.

Furthermore, the new regulations allow shipping companies the option to be taxed under a tonnage tax system instead of corporate income tax. This is expected to positively impact the competitiveness of the Polish maritime market. The preferential tax system will be accessible not only to vessels sailing under the Polish flag but also to those registered in other European Union and European Economic Area countries, aligning Polish regulations with current European Commission public aid practices and shipowner demands.

The amendments also extend the tonnage tax to ship managers, making the instrument more attractive to businesses. However, the implementation of these regulations is contingent upon a positive decision from the European Commission regarding the compatibility of the public aid with the internal market. A clause to this effect will be included in the legislation.

In addition to tax benefits, the bill includes significant updates to the Maritime Labour Act, incorporating the 2022 amendments to the 2006 Maritime Labour Convention. These changes mandate shipowners to provide seafarers with internet access, appropriate work clothing, free meals meeting specific standards, and access to drinking water. The law also addresses the provision of medicines and medical supplies for ships, establishing a separate mechanism for shipowners to procure mandatory ship's medicine chest equipment, thereby removing existing barriers in pharmaceutical law. New provisions also cover the financial security of shipowners' liabilities towards seafarers, including medical costs and wages during incapacity, and clarify the regulations for seafarers' medical examinations.