What are the taxes for an LLC in Poland?

Taxes for LLCs in Poland

A Limited Liability Company (Spółka z o.o.) is one of the most popular forms of business in Poland among foreign entrepreneurs. An important part of such a business is understanding the taxation system, as it directly impacts the company's financial results. In Poland, LLCs are taxed at the Corporate Income Tax (CIT) rate and are also required to fulfill a number of other tax obligations.

Corporate Income Tax (CIT) for LLCs

The main tax paid by an LLC in Poland is Corporate Income Tax (CIT). The rates for this tax vary depending on the size of the company:

1. 9% for small companies and startups. This rate applies to companies with an annual income of less than 2 million euros. This is a significant benefit for new companies, helping to reduce tax burden during the early stages of development.
2. 19% for large companies. For companies whose annual income exceeds 2 million euros, the standard corporate tax rate of 19% applies. This is the main rate for most businesses in Poland.

Value Added Tax (VAT) for LLCs

LLCs in Poland are also required to pay Value Added Tax (VAT). The VAT rate is:

• 23% for most goods and services. This is the standard rate that applies to most types of business activity in Poland.
• 8% for certain goods and services. For example, lower VAT rates may apply to construction services, transportation services, and other specialized services.
• 5% for certain goods, including food products and medical services. Poland also has preferential rates for certain types of goods and services, reducing the tax burden on businesses in specific sectors.

Dividend Tax

If you pay dividends, you need to consider the income tax for owners. In Poland, this tax is 19%, which is the standard rate for income from dividends.

Tax Planning and Expense Optimization

Tax planning is an essential part of achieving financial success for your business in Poland. Timely VAT registration, choosing the right tax system, and conducting proper financial strategies can significantly reduce the tax burden.

Advantages of Proper Tax Consulting

Useful tax consulting will save you time and money, optimize tax expenses, and ensure maximum efficiency for your business. Our lawyers and tax consultants are ready to assist you with:

• Choosing the best tax system. We will help you determine which tax system is best suited for your company.
• VAT registration. We will prepare all necessary documents for registration and assist you in going through this process without errors.
• Expense optimization. We will suggest ways to optimize your expenses to reduce the tax burden and increase your company's profitability.

Questions and Answers

Why is it important to consult a lawyer before registering an LLC in Poland?

Determining the optimal company structure. Our lawyers will help you choose the right legal structure for your business in Poland to avoid mistakes in tax planning.

Reducing tax burden. A lawyer will help you find ways to optimize your tax expenses, ensuring financial benefit for your business.

Consultation on tax incentives. We will provide consultations on available tax incentives and opportunities for your company.

Need help with calculations and tax consulting? Contact us, and we will help you effectively manage your LLC's tax obligations in Poland. For a consultation, call +380631688139.