Consignment stock for intra-EU trade
In many cases foreign investors which plan sales of goods in Poland may face problems with understanding the Polish tax regulations, particularly the VAT Law. Although the Polish VAT Act is to some extent harmonized with EU provisions, some derogations are still allowed and full harmonization has not been yet

Taxation of dividends paid by the Polish companies
Profitable entities can pay money to the shareholders as a dividend. Dividend paid by a Polish company is principally subject to taxation with a 19% rate. Tax on dividends is a withholding tax (“WHT”) levied on the dividend payer who becomes the dividend tax remitter.

A car in your company – leasing as an alternative to purchasing
When we need to have a new car dedicated for business use in Poland, there may be a question on how we will pay for it – buy or lease? In such situations, the decision makers consider the phase of their company’s development, cash-flow or other financial factors rather

Tax Capital Groups in Poland
In accordance with the Polish Corporate Income Tax (“CIT”) regulations, not only the individual company but also a group of at least two entities (limited liability companies or joint-stock companies) registered in Poland can be separate Polish CIT payers. This is done through forming a Tax Capital Group („TCG”) including entities

The concept of permanent establishment
The concept of permanent establishment (PE) is extremely important issue for international double tax treaty law concerning cross-border activities and avoiding the contravention of  tax law. It is PE existence that determines whether, or not, the tax authorities of certain country has right to impose tax on the

International Double Taxation
International double taxation is a very important issue to entrepreneurs from all over the world attracting also the attention of economists and financial experts. Nobody particularly likes to pay taxes and of course nobody likes to pay tax twice for the same thing. Double taxation arises when the same income, asset or financial

Civil Law Activities Tax in Poland
Transactions made by entities carrying out business activity in Poland are, in most cases, taxed with Polish VAT since this is applied to most goods and services. However, certain transactions may be subject to another tax which is called Civil Law Activities Tax (“CLAT”). Unlike VAT, CLAT is an example of a direct tax collected

VAT refund for entrepreneurs not registered
for Polish VAT
Regardless of the legal form of carrying out business activity in Poland foreign investors are obliged to pay VAT on purchases made in Poland. The basic VAT rate in Poland is 22%, but there are products taxed at lower rates of 7%, 3% or even 0%. There are also some

Tax control procedures in Poland
In Poland - as in all other EU countries - one of the tax authorities’ most important duties is to verify whether or not taxpayers have fulfilled their statutory obligations towards the State Treasury. But what may be confusing is that under statutory terms there are two main methods of verification:

Transfer pricing tax regime in Poland
Foreign entrepreneurs may establish various forms of companies to conduct business activities in Poland. Regardless of the chosen form (limited liability company, limited partnership, a joint-stock company, etc.) and apart from the formal connections between the Polish subsidiary and its foreign shareholder (partner), there is

How to recover VAT paid during the investment phase?
Regardless of the legal form of carrying out business activity in Poland by non residents (limited liability company, joint-stock company, partnership, etc.) they are obliged, as a rule, to pay VAT on purchases as, like anywhere else in the EU, the sale of most goods and

Purchasing business assets in Poland – how to avoid tax risk?
In many cases buying an existing business is a better solution than setting up a new one. Beginning from scratch involves a number of issues such as start up planning, choice of location, hiring of employees, marketing activities, building up of a clients portfolio, not

Taxation in Poland – general rules
Business decisions concerning locations of new investments are often determined by the legal system which investors have to face when dealing with new EU member countries. This forces the governments of these countries to compete by introducing fair, clear and simple regulations. Taxes are no exception here. During

Common tax consequences of business financing in Poland
In accordance with information provided by the National Bank of Poland, the total amount of direct foreign investments in Poland in 2008 amounted to EUR 9 972 mln (figures of 2009 are not published yet). More than 91 % of the investments are from the European Economic