Ukrainian taxation of commercial activities abroad: protection of your business
Ukrainian business expanding its activities abroad faces many challenges, one of the most important of which is taxation. This issue requires careful preparation and legal support, because incorrect interpretation of tax legislation can lead to significant financial losses and problems with foreign tax authorities. For entrepreneurs seeking to protect their business, it is critical to understand the specifics of taxation of commercial activities abroad. In this article, we will consider the main aspects of taxation of Ukrainian companies abroad, in particular in Poland, and provide recommendations for ensuring the legal security of your business.
Taxation of income received abroad
Income received by Ukrainian companies outside of Ukraine is subject to taxation in both countries: in Ukraine and in the country where the business is conducted. The main problem for entrepreneurs is the avoidance of double taxation, which can significantly increase the financial burden on the business and lead to significant losses.
Question
How can Ukrainian companies avoid double taxation abroad?
Answer
In order to avoid double taxation, it is necessary to use agreements on the avoidance of double taxation, which Ukraine has concluded with various countries, including Poland. These agreements allow taking into account taxes paid in one country when calculating tax liabilities in another, which significantly reduces the risk of double taxation.
To ensure the legality of their actions, entrepreneurs need to have their documents checked by a lawyer who will perform a legal document analysis related to commercial activities abroad. This will avoid problems with tax authorities in both countries. It is also recommended to obtain a legal opinion from a lawyer to ensure the correctness of the chosen taxation strategy.
Specifics of taxation in Poland
Doing business in Poland has its own peculiarities, especially in the context of tax legislation. Poland applies a progressive scale of taxation for the income of individuals, as well as specific rates for legal entities. It is important for entrepreneurs to consider these aspects in order to avoid unexpected tax liabilities.
Basic tax rates in Poland:
- Income Tax (CIT) – 19% for large businesses and 9% for qualifying small businesses.
- Value added tax (VAT) – standard rate of 23%, with reduced rates of 8%, 5%, 0% depending on the type of goods and services.
- Personal income tax (PIT) is a progressive scale consisting of 12% for incomes up to a certain amount and 32% for higher incomes.
A lawyer in Warsaw can provide legal advice or written advice on taxation in Poland, which will help Ukrainian entrepreneurs understand the complexities of Polish tax legislation and minimize risks.
Risks and legal protection of business
Tax issues related to doing business abroad can lead to tax disputes, which require a deep legal analysis of the situation and obtaining a legal opinion of a lawyer. This is especially relevant for Ukrainian companies operating in Poland, where tax legislation may differ significantly from the Ukrainian one.
Question
What steps should you take to protect your business from tax risks abroad?
Answer
To effectively protect your business from tax risks, it is important to contact a lawyer in Poland or use the services of a lawyer online. Carrying out a legal analysis of the situation and obtaining a legal opinion of a lawyer allow you to minimize the risks associated with tax obligations. Regular updating of the legal analysis of the situation also helps to adapt to changes in legislation.
Basic steps to protect your business:
Verification of documents by a lawyer at the stage of planning commercial activities abroad.
Carrying out a legal document analysis related to tax obligations.
Consultation of a lawyer on the preparation of a legal defense strategy.
Regular legal analysis of the situation for compliance with current legislation.
Obtaining a legal opinion from an attorney regarding your current situation can significantly reduce the likelihood of tax disputes and financial losses. It is also important to have a legal opinion to help avoid misinterpretation of tax laws.
Advantages of legal support for Ukrainian business in Poland
For entrepreneurs doing business in Poland, the availability of legal support is an important factor for successful activity. Thanks to the consultations of lawyers, Ukrainian companies can effectively manage tax risks, receive timely legal opinions and document analysis, as well as promptly respond to changes in legislation.
Legal support services for business in Poland:
- Legal document analysis for compliance with tax requirements.
- Preparation of a lawyer's legal opinion on taxation issues.
- Consultation of a lawyer on issues of international tax law.
- Written consultation on optimization of tax liabilities.
- Legal opinion on possible risks and their minimization.
A lawyer online or a lawyer in Poland can provide the necessary support in solving complex tax issues that arise in the process of doing business abroad.
Consultations on tax issues and their importance
Consulting a lawyer is a key element of successful business conduct abroad. Thanks to professional consultations, Ukrainian entrepreneurs can get a clear understanding of their tax obligations, avoid possible problems with tax authorities, and also effectively optimize their tax burden.
Types of consultations on tax issues:
- Consultation of a lawyer regarding double taxation avoidance agreements.
- Written advice on the structuring of income and expenses.
- Consultation of a lawyer on the application of tax rates.
- Legal analysis of the situation and preparation of a legal opinion.
- Legal document analysis related to tax obligations.
It is recommended to regularly seek advice from specialists in order to be sure of the correctness of your decisions and to avoid possible tax risks.
Taxation of commercial activities abroad is a complex issue that requires a professional approach and a deep understanding of international tax legislation. Ukrainian entrepreneurs who conduct business outside of Ukraine need to provide legal document analysis, receive regular consultations from lawyers and have legal opinions on current issues. This will reduce the tax burden, avoid double taxation and ensure legal security for business. If you have questions about taxation abroad, contact the CONSULTANT legal marketplace for professional assistance.
