Tax Lawyer in Poland
In Poland, there is a loyal taxation system attractive to foreign businessmen, which is one of the most optimal in the European Union. In Poland, the activities of the tax authority do not have a punitive function and well-prepared documentation can be a sufficient argument for the supervisory authority. The content of the documentation is traditional, has standard parameters provided for in the laws. It should also be noted that in the absence of documentation, a person bears tax and criminal liability. So, in the absence of documentation, the penalty rate for tax on accrued income is applied - 50% plus interest on arrears. In addition, criminal liability in the form of a fine of PLN 4 million is possible in the absence of documentation or if it contains false information. The fixed income tax rate for legal entities in Poland is 15%. Regarding VAT (VAT) - reduced rates are applied to certain categories of goods and services - from 0 to 23%. Also, the tax system in Poland is not a tool for suppressing entrepreneurs. The local legislation governing transfer pricing (TP) mechanisms applies the principle of reasonableness and expediency, and the burden of proof of guilt rests with the tax authority.
Types of taxes in Poland:
- personal income tax, PIT (Personal Income Tax). The tax payer is everyone who receives wages (and not only by labor, but also by civil law contract), income from entrepreneurial activity. An exception is income exempted from taxation. The income tax rate for individuals is 32%.
- corporate income tax, CIT (Corporate Income Tax). The tax applies to the total income earned on the territory of Poland by resident legal entities. This tax is 15%.
- value added tax, VAT. Tax on the purchase of food, clothing, services. This tax is usually included in the price of a product or service (we are talking about the gross price). If the price is in net (that is, without taxes), this means that you need to add VAT. There are different VAT rates in Poland: 23% - basic tax rate; 8% - passenger transfer, hotel service, medicines and more; 5% - certain foods and more; 0% - export products, socially important services (banking, medical, postal) and others.
The main subjects of the application of the TTZ are national and foreign related parties in the case of the application of business transactions between them. Criteria of business operations are also determined, the excess of which requires the preparation of tax documentation on the justification of transfer prices. Notification of transactions by related parties to the tax office is not required. However, participants in a TCA are required to submit tax documentation substantiating the nature of transfer prices to the tax authority within seven days from the receipt of their request.
In Poland, there are rules of a controlled foreign company (CFC), according to which Polish tax residents are subject to income tax in the amount of 19% received by their CFC. The CFC includes legal entities, such as limited liability companies, as well as transparent structures that are not related to tax, transparent partnerships without tax. These CFC taxation rules apply under certain conditions if the registered office or office for the effective management of a foreign company: is in a jurisdiction that is blacklisted by Poland; located in a jurisdiction with which Poland or the EU have not entered into an agreement on the exchange of tax information; is located in any other jurisdiction and certain conditions are met (at least 50% of the income is attributable to passive income, at least one type of passive income is taxed in another jurisdiction at a rate that is at least 25% lower than the income tax rate than in Poland, to a Polish tax resident at least 25% of its registered capital, voting rights or the right to participate in its profits for a continuous period of at least 30 days belong directly or indirectly. The provisions of the CFC do not apply in the following cases: the income of a foreign company in a tax year is less than 250,000 euros; a foreign company carries out real business activities in the EU or in the European Economic Area and is taxed on all income; a foreign company carries out real business activities in a country that is not a member of the EU or the EEA, and is taxed on all its income, provided that: the income is not more than 10% of the proceeds from this business activity; There is a mechanism for the exchange of information between Poland and other countries.
Tax lawyer in Poland provides legal services for businesses in many cities in Poland in Russian, Ukrainian, Polish, English and other languages. A tax lawyer in Poland has extensive experience in the field of Polish tax law and represents clients in tax disputes and provides other legal services.