Poland: 9% up to €1.2M revenue, 5% for IP.

[blockchain4ever]

Don't fall for no Polish trap and enter the country with its enticing low tax rate its a trap....lol. Yes, you could wind the company down and start same business in another EU country but this could be considered exit tax avoidance if you have start new business with same customers, business model, management, products etc but just different name. I wouldn't want to argue that in court.

In court you would dig up article 54 of the EU treaty, freedom of establishment. The country you exit might have an exit tax, but they cannot stop your new business from competing on equal terms.

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:12016E054

 

[Martin Everson]

In court you would dig up article 54 of the EU treaty, freedom of establishment. The country you exit might have an exit tax, but they cannot stop your new business from competing on equal terms.

Would love to see that happen .

 

[hungryit]

In court you would dig up article 54 of the EU treaty, freedom of establishment. The country you exit might have an exit tax, but they cannot stop your new business from competing on equal terms.

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:12016E054

I don't believe this will be something put in force in real live.

 

[Milky Moon]

I don't know what the world will look like but EU will be the biggest open air prison in the world. Expect harmonized taxes, EU ID card, personal exit taxes across entire EU and a social score system.

Nah, there will be no EU anymore in 10-15 years time.

 

[JohnLocke]

EU is changing and it is going fast at the moment. There are some good points already in this thread which could draw a true picture of all of it.

However, when something is that bad then most often people find something that will make bad things great again, exception Donald Trump!

 

[Martin Everson]

Nah, there will be no EU anymore in 10-15 years time.

I really hope not. There will be flash points and instability in future but resistance to the EU as a member state is futile . The EU are putting in place measures to ensure unanimous voting is replaced by Qualified Majority Voting further silencing dissenting voices against EU policies as they go full speed ahead with tax harmonization etc.

http://europa.eu/rapid/press-release_IP-19-225_en.htm
Things are moving so fast in EU like Admin says. People are simply not ready or happy with the speed of change they are forced to accept. This is one of the reasons Trump is in power in US and brexit occurring. People have simply seen their jobs and livelihoods disappear due to the speed of progress and globalization and they fear for their futures. Extreme capitalism has in fact radicalized a whole portion of Americans, and EU persons etc who are looking for someone to blame .

In 10-15 years time unless the EU slows the pace of integration countries will not leave the EU, but the EU will have leaders that are from what today are marginal fringe groups. It can so easily all go wrong for the EU just look at France, Italy, Austria, Hungary and even Germany etc. If things go politically wrong in Germany and France then yes its all over for the EU as the EU is Germany and France - the rest are just hangers on, basket cases and vessel member states.

 

[GrumpyMess]

I don't know what the world will look like but EU will be the biggest open air prison in the world. Expect harmonized taxes, EU ID card, personal exit taxes across entire EU and a social score system.

Yes, but anyway it's still one of the best places to live in the world. Other good places have even higher taxes.

 

[Martin Everson]

Yes, but anyway it's still one of the best places to live in the world. Other good places have even higher taxes.

You will come to love your captors with time

 

[Milky Moon]

In 10-15 years time unless the EU slows the pace of integration countries will not leave the EU, but the EU will have leaders that are from what today are marginal fringe groups. It can so easily all go wrong for the EU just look at France, Italy, Austria, Hungary and even Germany etc. If things go politically wrong in Germany and France then yes its all over for the EU as the EU is Germany and France - the rest are just hangers on, basket cases and vessel member states.

EU/Brussels is totally out of sync with the 'populus'. They live in their own bubble and do not address the needs of the EU citizens. Further integration is not what most people want, however it is seen by Brussels as the only way forward.

Combine this with brexit, where a large counterforce against integrationist tendencies now leaves the EU, thereby makeing the EU a French/German axes, resented by the rest of Europe. The French are at a state of near civil war, they run failed budget for the last 30 years orso. They need to change, but cannot due to their internal politics.

So the only way for France to survive is a transfer Union (something Italy and Spain also would be very comfortable with). This will see the Nordics pay. And pay. And pay. They will not be happy. The future of the EU doesn't look very good.

It's Belgium all over again. Where Flanders pays for the failed politics of the Walloons. This will end. Sooner of later. Ans it will not be good.

 

[blizz]

Would it be possible to get back on topic

 

[PolishCourier]

I will try. Being in a heart of the cyclone (namely: Poland) I have to say that there are obvious advantages and disadvantages when it comes to incorporation in Poland and it all depends on a number of factors.

Generally saying: for a small enterprise the conditions are very good. 9% CIT up to euro 1,200.000, quite flexible tax authorities when it comes to small companies. Banks still open bank accounts for foreign owned companies. Prices are reasonable. Many local professionals who speak English or German. Culture of everyday work is high, banking solutions are reliable.

What more?

The time for typical offshores has passed, now every EU citizen must think about alternative solutions. Maybe it shoud be your llc in Poland?

 

[hungryit]

The time for typical offshores has passed, now every EU citizen must think about alternative solutions. Maybe it shoud be your llc in Poland?

I agree, that's what we have to do. It's going to be increasingly difficult to get tax hiding.

 

[Martin Everson]

Like I said before, with CFC laws in EU setting up small business in Poland offers zero tax savings. The corporation may be deemed to be operating in your home country without a substance test for its operations in Poland. You need to look beyond the headline tax rate and not so easily become snared into a tax trap.

 

[OffCap]

What do people think of the new regulations in Poland?

In EU, moving a company from a high-tax jurisdiction to Malta or Cyprus might raise red flags, while Poland should not raise any.

For the small business entrepreneur, this could potentially be ideal.

However, Poland might have its set of issues. What are they?

Poland is a super big hassle to deal with, not recommended if you can avoid it. Things there are expensive and slow with lots of nuissance.

On top of that forming a company in Poland on its own doesn't free you of tax elsewhere you need to actually look at the substance of the business.

If you're actually making a significant amount of money and paying a significant amount of tax invest in a proper legal set up so you're not concerned about EU, etc. and call it a day. If you aren't paying a decent amount of tax then focus on increasing your income.

 

[Tourbillon]

<<snippet>> what do you mean with "expensive"? Poland is one of or maybe even cheapest countries in EU. From living to lawyers, everything is really cheap.

 

[PolishCourier]

Substance tests? No problem. Some local legal firms offer nominee Polish directors or even professional directors for a good price. Some firms can even organise everything, starting from real office, staff, accounting and directorship.

9% CIT tax is great rate and with parent-subsidiary directive at place you may transfer dividends to more friendly jurisdiction within EU (as Poland has 19% tax on dividends).

 

[Martin Everson]

9% CIT tax is great rate and with parent-subsidiary directive at place you may transfer dividends to more friendly jurisdiction within EU (as Poland has 19% tax on dividends).

So then:

1. You need to find another EU company to become the parent holding company for the polish company to get around the 19% dividend withholding tax. i.e take advantage of EU parent subsidiary legislation.

2. You then need this new EU parent company to pass economic substance legislation also in the same way as the polish company.

For 9% tax rate on max earnings of 1.2m I wouldn't bother....just relocate.

 

[PolishCourier]

Be creative.

You know what is the most popular way of evading double taxation in Poland? Just leaving the money in the company's cash desk....

 

[JohnLocke]

Be creative.

You know what is the most popular way of evading double taxation in Poland? Just leaving the money in the company's cash desk....

And how to you spend it from there?

 

[PolishCourier]

This is of course not legal to take it from there, but I have never heard of Polish tax authorities to search for cash. As long as it is placed in financial statements and in cash register then it is presumed it is in company still.