Poland approves zero PIT for sailors and offshore vessel crews

The Polish Sejm has approved a new law that introduces a zero income tax rate for sailors and workers on vessels serving the offshore sector. This legislative change is part of broader efforts to improve working conditions at sea and bolster the competitiveness of Polish shipping companies.

The bill, which passed with overwhelming support (431 votes in favor, 4 abstentions, and none against), will now proceed to the Senate. The new regulations aim to provide shipping entrepreneurs with the option of tonnage tax instead of corporate income tax, which is expected to positively impact the competitiveness of the Polish maritime market.

Furthermore, the law extends the preferential tax system not only to ships sailing under the Polish flag but also to vessels registered in other European Union and European Economic Area countries. This move aligns Polish regulations with current European Commission practices on state aid and addresses demands from shipowners.

The legislation also incorporates amendments to the Maritime Labour Act, implementing changes from the 2022 revisions to the Maritime Labour Convention of 2006. These updates impose new obligations on shipowners, such as ensuring seafarers have access to internet, appropriate work clothing, free meals meeting specific standards, and drinking water. The law also seeks to streamline the supply of medicines and medical devices to ships by creating a separate mechanism for shipowners to purchase mandatory ship's first-aid kit equipment, overcoming current pharmaceutical regulations.

Additionally, the approved changes address financial security for shipowners' liabilities towards seafarers, including coverage for medical costs and wages during incapacity for work. The rules concerning mandatory medical examinations for seafarers have also been clarified. The implementation of these regulations is contingent upon a positive decision from the European Commission regarding the compatibility of the state aid with the internal market.