TAXATION OF BUSINESS IN POLAND FOR UKRAINIANS

Even before the start of the war, many Ukrainians planned to start their own business in European countries. This was associated with a transparent system of activity and the possibilities of the European market. After February 24, many citizens were already forced to change their place of residence to other regions or even other countries. One of these is Poland. One of the first questions that worries most people is how to work in another country, namely, what is the taxation of business in Poland?

At the same time, Poland is one of the countries that has done its best to ensure that citizens of Ukraine can work and conduct business on the same level as local residents (citizens).

Registration of business in Poland

In Poland, it is important that businesses operate on transparent terms. At the same time, the organizational and legal forms of doing business in Poland are very similar to Ukrainian forms of doing business, among them you can choose a general entrepreneurial activity, partnership, a limited liability company, as well as private entrepreneurial activity (also called sole proprietorship or entrepreneurial activity of an individual) , which is, in fact, an analogue of the Ukrainian FLP.

General provisions for business taxation in Poland

It should be taken into account that the general income tax rate is 17% or 32%. But there are two more taxation options that you can choose when registering a business:

• this is 19% of profit and 4.9% of social tax, which is 23.9% in total
• or from 2% to 17% of the income received.

It is understood that income tax is paid here on the net profit. That is, it is the difference between the income received and the expenses incurred by the entrepreneur in carrying out his activities.

Yes, we can conclude that tax rates in Poland are somewhat higher compared to Ukrainian ones, however, at the same time, they remain one of the lowest in the European Union.

In addition, it should be noted that in addition to the specified taxes, a social contribution of PLN 60 must be paid for the first six months from the date of registration, and then the social contribution is PLN 200 per month.

In addition to the above taxes, there is also compulsory health insurance calculated from the chosen method of taxation.

Value added tax

Under Polish law, the taxpayer is entitled to a VAT refund. VAT is calculated every month or quarter, depending on which calculation method the taxpayer has chosen. VAT is refunded in accordance with the procedure established by law on the territory of Poland in full. But if a person has encountered difficulties in independently filling out the necessary documents for VAT refunds, then it is better to contact professional specialists and use their services. In particular, in this, as well as on other issues of doing business in Poland, the relevant specialists of the Law Company "Prikhodko and Partners" will help.

So, as follows from the above, taxing a business in Poland has its advantages, however, without a clear understanding of local legislation, a person runs the risk of encountering difficulties that may negatively affect the tax burden and the conduct of your business as a whole.