Bookkeeping and accounting services are essential for all legal entities and many company owners choose to outsource these services. Relying on a team of accountants in Poland has many advantages, among which the most important is the assurance that the company is fully compliant with the regulation requirements in force.
Before starting the steps to open a company in Poland, investors should consider all aspects related to incorporation as well as the matters that will become relevant once the company starts its business activities. Issues such as taxation, audit and accounting are to be taken into consideration so that the investor knows the general requirements applicable in the country.
Bookkeeping services in Poland
Maintaining complete financial records for the company, according to the domestic standards
Calculations, statements, calculating wages, making the wage deposits for employees, general employment taxes management in Poland
Preparing and tracking the payment of issued invoices, storing monthly invoices as required
Collecting and managing cash flows as per the company's activities
Preparing the annual financial statements, complete assistance from our accountants in Poland for the advance income tax assessment, the final calculation and tax reconciliation
A complete evaluation of the company's financial transactions with the purpose of determining performance
Due diligence, fraud risk assessment, money laundering compliance, presenting and interpreting the findings
Tax consultancy, information on double taxation avoidance in Poland, the taxation of foreign nationals, other tax obligations
VAT compliance and reporting
Assistance for VAT registration according to the threshold, making the VAT submissions and payments in the month following the one in which the VAT obligation took place
Audit offered by our accountants in Poland
Standard audit review according to the Polish Accountancy Act
Property financial matters
Real estate accounting and advisory services concerning the taxation of income derived from real estate
Statutory compliance in Poland
Information for companies on the current financial reporting framework in Poland
Tax authority assistance
Representation in front of the tax bodies as required
Support for voluntary dissolution
Assistance for companies that commence the liquidation process, including but not limited to liquidating the bank account
Services for foreign companies offered by our accountants
Tax consultancy and accounting principles for foreign companies in Poland (branches) or foreign sole traders
What kind of accounting services do you need in Poland?
A company’s financial statements must be, above all, accurate. Our accountants will verify all evidence supporting them and make sure no mistake is present.
Common types of accounting services are listed below by our agents who specialize in company formation in Poland:
-Bookkeeping: preparing and updating the company’s financial accounts as needed; monitoring all transactions;
-Tax filing: a service related to preparing and submitting the periodical tax returns with the Polish National Revenue Administration, according to law;
-Payroll: an experienced accountant in Poland can bring great benefits to any business in matters related to payroll processes and procedures; our accountants in Poland are qualified to prepare payrolls and statements for the company’s employees;
-Audit: complete services for evaluating the accuracy of a company’s financial statements and reports; performed in accordance to the Polish audit requirements;
-Forensic accounting: a special type of service focused on solutions needed in case of fraud or financial problems;
-Others: our team of financial experts can help investors and entrepreneurs with other services related to financial reports, such as accounting in case of company mergers or divisions in Poland and accounting in case of EU projects;
We work with a professional and experienced team of accountants in Poland who are able to assist companies that require these types of services.
How can a business benefit from professional accounting services?
Professional accountants have an important role in offering competent advice and assistance on a wide range of business and tax matters. Investors and business owners in Poland rely in their services.
Our accountants in Poland specialized in the country's legislation and accounting policies will help our clients’ businesses consolidate their position on the Polish market and improve their financial results. We will make sure they run well conducted management processes.
Our specialists in company formation in Poland are able to help clients businesses all the way from the moment of establishment and during their continuous development. We can help them organize their financial department and flow of documents so that all tax related issues run smoothly. We also provide consultancy and assistance in tax related matters for company registration in Poland and loans applications.
Those interested in working with an accountant in Poland should know that our team includes certified professionals. The two national organizations in Poland for the accounting profession are the Accountants Association and the Polish Chamber of Statutory Auditors. The Accountants Association also includes the Institute of Professional Certification for Accountants, which provides courses for individuals interested in obtaining qualifications as accountants, accounting specialists, chief accountants or certified accountants. The professional competencies principle states that an accountant in Poland is bound to receive not only adequate professional training and obtain the qualifications, but also to continue to expand the knowledge and improve the needed professional skills that will allow the provision of services.
Accountants observe the principle of high quality of work, and their work is reliable, impartial and honest. Such as professional is expected to provide services in a responsible manner, and observe the requirements for professional confidentiality and good conduct in relations with individuals, entities and institutions.
A Polish accountant can adhere to the Code of Professional Ethics in Accounting and for this purpose he will lodge a statement for its adoption with the Accountants Association. A growing number of professionals have chosen to do so, and according to the Association, there were 24,449 individual signatories of the code (natural persons) and 2,458 legal persons who had also signed the Code. The ability to practice the profession is limited when the individual has been sentenced for an economic offence or in other cases.
What are the main issues regarding reporting and taxation in Poland?
Understanding the rules and regulations for corporate taxation and the principles for filing the financial statements is important before commencing business. Below, our team of accountants in Poland lists some of the highlights of the taxation and the reporting regime:
Accounting principles: the Polish Generally Accepted Accounting Principles (GAAP) are used and in some cases the International Financial Reporting Standards.
Corporate taxation: companies in Poland are taxed based on residence and they are considered to be so if they have their registered set or management in the country;
Dividend taxation: those received by a Polish company from another Polish, EU/EEA or Swiss company are exempt from tax is they are not related to a benefit that is derived from a tax exemption and if certain holding and participation requirements are met; joint stock partnerships may not be subject to this exemption and out team can provide mode details in specific cases;
Tax year: the tax year in Poland is generally the same as the calendar one, however, any other 12-moth period can be chosen.
The rates for the main types of taxes applicable to companies in Poland are the following:
•19%: this is the standard corporate income tax rate that applies to the worldwide income of Polish resident companies and the Polish-sourced income for non-residents;
•9%: this is the lower tax rate that can apply to income other than capital gains for small taxpayers and businesses that commence their activities with revenues lower than 1.2 million EUR in the first year (certain exceptions apply to this);
•0%: the general withholding tax in dividends, interest and royalties for resident companies; different rates of 19% for dividends apply in case of non-resident companies;
•23%: the standard value-added tax, with two lower rates of 5% and 8%; a 0% rate is also possible for some types of goods and services.
Investors should note that VAT registration is not mandatory for all taxpayers. The applicable threshold is that of an annual turnover of 200,000 PLN unless the company is engaged in an activity that is not subject to VAT exemptions (for example, the sale of alcohol and tobacco). Our accountant in Poland can provide complete assistance for filing VAT returns and offer information about VAT registration in Poland.
Double tax treaties signed by Poland are a measure meant to attract foreign investors and avoid the situation when investors are taxed both here and their country of origin. When starting a Polish business you might consider taking the qualified advice of an accountant for guidance on how to benefit from these treaties.
In addition to the services we provide specifically for companies, we can also assist foreign entrepreneurs who are in need of accounting and taxation guidance when they act as international executives for a company in the country. Reach out to us if you are interested in issues such as the tax rates and the residence rules as well as filing the tax returns and compliance. We can also provide details on the capital gains tax exemptions and the taxation of investment income.
Our accountants in Poland create customized packages of services for each and every client in order to make sure they receive the most suitable advice for their businesses. We want to make sure our clients efficiently control the business expenses and therefore they are all set for success. Below, you can watch a short video about our services:
Audit requirements in Poland
Polish companies will look for both accounting and audit services. While the first are required in all cases, not all Polish companies are subject to audit requirements.
According to the Accounting Act, not all legal entities are subject to mandatory audit. In fact, this is applicable in case of larger companies in Poland. The legal company’s annual financial statements are audited when the legal entity meets at lest two of the following three conditions (for the financial year for which the statements are prepared):
- it has an annual number of full-time employees of at least 50;
- the turnover (total assets, as per the balance sheet) is 250,000 EUR (approximately PLN 1,140,063);
- at the end of the financial year, the company has a net revenue from the sales of finished goods of at least 5,000,000 EUR (approximately PLN 22,801,272).
The financial statements auditing requirements apply to certain types of companies according to the business field and not necessarily according to the minimum requirements listed above. This is the case for banks, insurance companies, insurers and for other companies that engage in selected financial services. Moreover, for some companies, the audit requirement may ne mandatory for companies that are the acquiring entity in a corporate purchase (the year when the M&A transaction took place), as well as for newly formed companies in Poland, for their first year of business.
Polish companies that are subject to this auditing requirement will outsource the auditing. The scope of the auditing process is to certify the accuracy of the financial statement. The auditor provides a written opinion and report on the accuracy of the financial statements prepared by the company and whether they comply with the rules in force. First and foremost, the auditor would verify if the information provided in the statements clearly reflects the company’s situation. It important for the data or the information to be true and fair and to provide an accurate representation of that legal entity’s financial situation. The auditor can also be the one to point out certain issues and recommend changes, as he will be well aware of the accounting and reporting procedures implemented in the said company.
The Polish Audit Oversight Agency is the one responsible for the oversight of the auditing profession in the country while the Polish Chamber of Statutory Auditors is the one certifying and registering auditors as well as enforcing the ethical requirements and performing disciplinary proceedings, as needed. It is also the one to adopt the auditing standards. All auditing firms and practicing auditors need to be a member of the Polish Chamber of Statutory Auditors.
You can always reach out to our team of company formation experts in Poland for more information about our accounting and our audit services. When choosing with one of our experts, you can rest assured that we work with accredited professionals who follow the guidelines, regulations and procedures dictated by the relevant regulatory agencies in their profession.
Special accounting and audit services
A particular category of services includes forensic accounting and auditing. These investigative reviews focus on providing solutions for internal investigations that have to do with corruption or fraud. The importance of a highly specialized report is important when the company is suspected of or the subject of a fraud or corruption investigation. In other cases, the accounting investigations may not necessarily be linked to fraud or money laundering, however, an in-depth evaluation is mandatory for the purpose of other regulatory investigations.
Forensic accounting and audit are part of a fraud risk management-focused approach that can help companies review unusual transactions, counteract money laundering as well as protect themselves from fraud.
When selecting these services, a team of several professional is composed in order to be able to provide the needed solutions. In this case, the team will also include legal specialists and, as may be needed, IT specialists. The goal is to identify the issues and provide solutions as quickly as possible in order to counteract or prevent fraud or money laundering altogether. These types of services are useful when the company is dealing with an internal investigation (for example, when one of the employees or one of the key management members are corruption suspects) or when the company itself is subject to an investigation. Having the needed accounting and audit support in these types of cases, when the review of unusual transactions is very important, is key for risk management.
Tax minimization strategies can help companies and individuals reduce the amount of due taxes. The process requires the use of certain strategies and good financial planning. Tax minimization in Poland is different from tax evasion or avoidance, the latter making use of illegal strategies and schemes.
Our company formation experts in Poland are ready to give you complete advice regarding the best ways to legally reduce taxes for companies and individuals.
A first step that can be taken into consideration when investing in Poland is to choose tax-efficient investments. This is a good long-term strategy not only for doing business in Poland but also to ensure tax minimization. This step is usually taken during the first years of a company’s life, during the accumulation stage but is can also be used as the company begins to collect income from assets.
Another way to minimize taxes is to bring forward the tax deductions into the current fiscal year. In Poland, certain expenses like travel expenses or certain services can be listed as business services and can be deducted. Contributions to retirement plans can also help to reduce the amount of due taxes at the end of the year, if they are made in advance.
Polish companiescan make donations to organizations and benefit from tax reductions that apply in this case. Contributions can be made in cash or in kind. Our company formation representatives in Poland can give you complete details to the reductions that may apply to taxes for companies and individuals.
Why is company formation in Poland attractive to investors?
Poland is a country with fast-growing market with high potential due to its advantageous position, educated and highly skilled workforce, good infrastructure, inexpensive services and low production costs as well as recent legislative measures meant to increase foreign investments.
According to the 2020 Doing Business Study, Poland scores well in starting a business and has an overall Doing Business Score of 76.4. the highest score of the country is that for trading across borders, where Poland obtained maximum points (100). The issues that contribute to this are related to a low time for documentary compliance (1 hour), no costs and a short time to export. In the Paying Taxes sub-section analyzed in this report, Poland scored 76.4 out of 100, and it ranks 77. According to the analyzed indicators, Poland scores well in this category because of the low number of annual payments, compared to other economies included in the study (there are 7 such annual payments in Poland). Most of the mandatory payments are made online, with some also being joint payments. The total number of hours required to handle tax payments in Poland, as per the study, was estimated at 334, meaning that entrepreneurs in Poland will usually spend around two weeks per year handling tax matters. Working with a team of accountants in Poland can thus be important for reducing the overall number of hours spend handling tax-related matters.
For the purpose of the Doing Business study, the sub-section concerning tax matters in Poland, the scenario used was that of a medium-sized company and the mandatory tax payments that need to be submitted by such a company were taken into consideration by taking into account the known information on the time needed to make the filings and payments.
Poland’s geographical position in Europe allows the country to provide for an excellent base for trading companies, which is clearly reflected in its maximum score for trading across borders. Moreover, the country’s stable economy and its proven resilience (through the recent economic crises) make it a good location, apart from the overall business-friendly environment.
Some of the key industries in the country include business services, automotive and electromobility, food processing, research and development, real estate, aerospace as well as the electronics industry.
Apart from the tax system briefly outlined above, and the main accounting and reporting requirements which are all mandatory irrespective of the chosen business field, investors in Poland will also enjoy a set of tax exemptions and/or incentives. Working with a team of accountants in Poland can be useful for first-time investors who wish to know how they can apply for these in due time. Some examples of exemptions and incentives include the R&D tax relief (up to 25% deductions), 5% tax on IP-related income, corporate income tax exemption in the special economic zones and others.
If you are interested in opening a business in Poland in 2021, our team of incorporation agents can provide complete support. Contact us for complete information on company formation in Poland as well as the main tax and accounting regulations. If you need legal services in other countries, such as New Zealand, we can put you in touch with our local partners.
Maciej Oniszczuk is the Managing Partner of our company. He is specialized in commercial law and has helped many businessmen set up companies in Poland.
Call us now at+ 48 570 978 609to set up an appointment with our company formation agents in Poland. As our client, you will beneficiate from the joint expertise of local lawyers and international consultants for opening a company in Poland.
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Starting a company in Poland can be difficult since it involves such complex procedures. The team from CompanyIncorporationPoland.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.