Poland is a country in Central Europe with a population of over 38 million people and is the fifth-most populous member state of the European Union. Poland is the sixth-largest economy in the UE and the largest economy among the ex-communist members of the European Union. Almost 40 million consumers and more than 10 million entrepreneurs provide significant investment and sales opportunities. At the same time, significant infrastructural investments and the ongoing development of the economy mean that there are many business areas to be developed. Foreign trade in goods turnover in January-June 2022 amounted to PLN 761.5 bn in exports and PLN 814.6 bn in imports at current prices. The negative balance stood at PLN 53.1 bn, while in the corresponding period of 2021 it was positive at PLN 18.6 bn. Compared with the corresponding period of 2021, exports increased by 20,8% and imports by 33,1%. Poland is a net exporter of food and manufactured goods.<\/p>\n
Polish law provides for free business activity for every entrepreneur which means that everyone has equal right to choose relevant type of business activity that suits to his\/her business.
\nThe most common types of business activity are commercial companies, in particular the limited liability company (about 80% of all entities) and general partnership.<\/p>\n
\u2022 General partnership: two or more partners, unlimited liability of partners,
\n\u2022 Limited partnership: two categories of partners \u2013 a limited partner, responsible for liabilities up to the amount stated in the partnership agreement, and a general partner with unlimited liability,
\n\u2022 Partnership limited by shares: two categories of partners \u2013 a shareholder and a general partner (unlimited liability), share capital of at least PLN 50,000,
\n\u2022 Limited liability company: share capital of at least PLN 5,000,
\n\u2022 Joint-stock company: share capital of at least PLN 100,000,
\n\u2022 Simple Joint-stock company (PSA): one or more partners, the share capital of a PSA, which must be paid upon its incorporation, is at least 1 PLN. It may be covered by contributions monetary or non-monetary.<\/p>\n
Company\u2019s agreement \u2192registration in the National Court Register (NCR) \u2192Obtaining the statistical numer (REGON) \u2192Obtaing the Tax Identification Number \u2192Registering for VAT purposes
\nFully electronic company\u2019s registration procedure \u2013 the S24 system or through the Court Register Portal.<\/p>\n
\u2022 Taxable incomes (calculated separately for capital gains and other income) are determined as a difference between taxable revenues and tax\u2013deductible costs for each source. Expenses are tax-deductible if they are related to earning (securing, sustaining) taxable revenues, exceptions to this rule apply (e.g. there are restrictions on deductibility of expenses paid to related parties for intangible services and use of trademarks).
\n\u2022 Tax rate \u2013 standard 19% and 9% for small taxpayers.
\n\u2022 Alternative taxation system: CIT due on income of capital entities, applied on a cash basis.
\n\u2022 Additional CIT taxation, creating factually an additional tax burden: (i) on retail activities, (ii) on revenue from real estate, (iii) minimum income taxation; (iv) on transferred profits.<\/p>\n
\u2022 Rates: 19% (dividends), 20% (interest, royalties, intangible services), but could be lowered even to 0% based of DTTs or implemented EU Directives (90 DTT\u2019s concluded so far)
\n\u2022 Statutory obligation of due diligence has been imposed as of January 2019 on payers when collecting WHT and when analyzing the possibility of applying statutory exemption or reduced WHT rate.
\n\u2022 “Pay the refund” procedure for more than PLN 2 million paid to a given taxpayer during the year \u2013 related parties, payments of interest\/royalties\/dividends (exclusion of intangible services), payments which without sound economic reasons do not qualify as receivables from the above.<\/p>\n
\u2022 The following thresholds obliging to preparation of so-called local files apply: PLN 10 million for transactions concerning tangible assets or financing, and PLN 2 million concerning services or other transactions. However, in the case of transactions carried out with entities located in the so-called tax havens a lower threshold of PLN 0.5 million applies (PLN 2.5 million for financing).
\n\u2022 Exceptions to the obligation to prepare transfer pricing documentation are also introduced.<\/p>\n
\u2022 R&D tax relief \u2013 up to 200% of additional deduction of eligible tax costs of R&D activity
\n\u2022 tax relief for innovative employees \u2013 the possibility for a taxpayer (who is a PIT tax remitter) to deduct a relevant part of R&D expenses from tax advances withheld from the income (earnings) of individuals active in R&D field
\n\u2022 IP Box \u2013 5% taxation of income from qualified IPs. Possible combined use with R&D relief
\n\u2022 tax relief for prototype products \u2013 up to 30% (not more than 10% of income) of additional deduction of eligible tax costs of trial production and market launch
\n\u2022 tax relief for robotization products \u2013 up to 50% of additional deduction of eligible tax costs of purchase of new robots
\n\u2022 tax relief for increase of sales \u2013 up to PLN 1 million of additional deduction of eligible tax costs of marketing and advertising
\n\u2022 consolidation relief \u2013 up to PLN 250,000 of additional deduction of eligible tax costs. It takes into account expenses for the acquisition of shares in a company that has a legal personality. Eligible acquisition expenses may include, among others: legal services, valuation, preparation of merger plans, audit, taxes.
\n\u2022 IPO (Initial Public Offering) tax relief \u2013 up to 150% or 50% of tax base reducted for expenses listed for joint stock companies.<\/p>\n
\u2022 Generally, the income gained by individuals is subject to progressive scale, applicable rates are 12% (up to PLN 120,000) and 32%.
\n\u2022 Free amount from tax \u2013 PLN 30,000
\n\u2022 Whenever income is gained in the course of business activity (i.e. self-employment or participation in partnerships), application either of standard progressive rates, or of a 19% flat PIT rate, or alternatively PIT lump-sum may be opted for, by filing an application to the competent tax authority within a due deadline.<\/p>\n
\u2022 All entities that perform activities subject to VAT in Poland are obliged to register before they undertake their first taxable activity. Upon VAT registration they gain the status of active VAT payers.
\n\u2022 Taxpayers must notify the Polish tax authorities in advance if they intend to carry out intra-Community transactions. On the basis of this notification, the entity is registered as an EU VAT payer. Taxpayers whose net amount of taxable sales did not exceed PLN 200,000 in the previous year are exempt from VAT (with exception for some types of activity). Similarly, taxpayers that start to make taxable sales during the tax year are exempt from VAT if the expected net amount of their taxable sales in a corresponding fraction does not exceed PLN 200,000. Taxpayers can, however, opt for taxation provided they notify the relevant tax office of their intention.<\/p>\n
Advicero Nexia is a consulting company providing comprehensive advice covering tax advisory, legal, accounting and payroll outsourcing services, VAT compliance and corporate services. Through cooperating entities we offer as well financial audit.
\nOur experience determines the scope of our advice, which covers in particular, but is not limited to:
\n\u2022 strategic tax advisory for real estate and construction, retail and FMCG, e-commerce, renewable energy,
\n\u2022 tax and accounting solutions for technology, innovation, manufacturing and trade sectors,
\n\u2022 tax advisory and compliance for investment and private equity funds,
\n\u2022 transactional advisory, due diligence, restructurings,
\n\u2022 management remuneration schemes, GMTS,
\n\u2022 transfer pricing studies, transfer pricing disputes,
\n\u2022 accounting and payroll outsourcing,
\n\u2022 excise\u202fduty\u202fin trade and\u202fproduction,
\n\u2022 disputes\u202fwith\u202fauthorities\u202f(VAT) and\u202fcourt\u202fproceedings.
\nWe provide our services in Polish, English, German and Italian.<\/p>\n
Advicero Nexia is associated with Nexia International, a leading worldwide network of independent, high quality accounting and consulting firms.<\/p>\n
Doing business in Poland with Advicero Nexia [2023] Poland is a country in Central Europe with a population of over 38 million people and is the fifth-most populous member state of the European Union. Poland is the sixth-largest economy in the UE and the largest economy among the ex-communist members of the European Union. Almost 40 million consumers and […]<\/p>\n","protected":false},"author":5,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1183","page","type-page","status-publish","hentry"],"yoast_head":"\n