Intangible services purchased from related entities tax law in year 2018

Concerning tax law Poland important is excluding the costs of intangible services purchased from related entities from tax costs.
Intangible services provided directly or indirectly for related entities or entities incorporated in the so-called tax havens will not be included in tax costs – in a part that exceeds the applicable limit – PLN 3 000 000 and, at the same time, in a part that exceeds – in total in a fiscal year – 5% of the surplus of the total revenues from all revenue sources, decreased by interest revenues, over the total costs of revenues decreased by the value of amortisation and depreciation allowances on fixed assets and intangible assets, included in the costs of revenues in a fiscal year, as well as the value of interest.

The above restriction applies to the following costs:
– advisory services, market research, advertising services, management and control, data processing, insurance, guarantees and securities as well as other similar services,
– all types of charges and payments for using, or the right to use any property copyright or related rights, licences, rights protected by the industrial property right regulations and know-how;
– costs of bearing the risk of a debtor’s insolvency on account of borrowings, other than borrowings granted by banks and SKOK credit unions – and, including within the framework of liabilities arising out of derivative financial instruments and similar services.


The new regulation does not apply to cost directly related to obtained revenue and costs reinvoiced to contractors.

Accounting Poland inform about eligible expenses within the framework of new technologies allowance

Talk to your accounting partner in Poland about changes in the scope of eligible expenses within the framework of new technologies allowance.

Beginning from January, remuneration and Social Security contributions paid on the basis of concluded contracts for performance of a specific task and mandate contracts become eligible costs. In addition, the limit of eligible costs has been increased – 30% or 50% up to 100% for all taxpayers, irrespective of their size.


Year 2018 CIT changes

Advances for income tax in 2018 – taxpayers are allowed not to pay a monthly and quarterly advance if the tax due on income obtained since the beginning of a year, decreased by the total amount of advances paid since the beginning of a year, does not exceed PLN 1 000.

If tax due on income obtained since the beginning of a year, decreased by the total amount of advances paid since the beginning of a year exceeds PLN 1 000, the amount to be paid is the difference between the tax due on income obtained since the beginning of a year and the total amount of advances paid since the beginning of a year. The above rule is a right and not a duty (therefore, taxpayers are allowed to pay advances in accordance with the current rules).

New rules for identifying interest on borrowings, loans since year 2018

The change of rules for identifying interest on borrowings, loans – new wording of art 15c of the Corporate Income Tax Act. Tax costs will not include interest on borrowings, loans, the interest part of leasing instalments, interest on late payment of liabilities, to the extent that the surplus of debt financing costs exceeds the applicable limit, i.e. PLN 3 000 000 during a year.

Surplus of debt financing costs – an amount of the debt financing costs incurred by a taxpayer, which are included in the cost of revenues in a fiscal year, that is a surplus over taxable interest revenues obtained by the taxpayer in such tax year.

Debt financing costs – any costs connected with obtaining funds from other entities, including unrelated entities, and using such funds; this includes particular interest, including fixed assets or intangible assets, capitalised or recognised at historical cost, charges, commissions, bonuses, interest part of leasing instalment, fines and charges for late payment of liabilities, as well as costs of securing liabilities, including the costs of derivative financial instruments, regardless of whose benefit they have been incurred for;

Interest revenues – revenues on interest, including capitalised interest, and other revenues that are economically equivalent to interest, corresponding to debt financing costs.

Value exceeding 30% of the surplus amount of the total revenues from all revenue sources, decreased by interest revenues, over the total costs of revenues decreased by the value of depreciation and amortisation allowances on fixed assets and intangible assets, included in the tax costs in a fiscal year, as well as debt financing costs that have not been included in the historical cost of fixed assets or intangible assets, will be excluded from tax costs.

The current regulations on thin capitalisation listed in art 16 (1) (60) and (61) apply to interest paid until the end of 2018.

initial value of fixed assets and intangible assets Y2018 changes in the corporate income tax

We present below a short description of changes in the Corporate Income Tax Act. That are in our opinion the most important, and which will come into effect on 1 January 2018:
The initial value of fixed assets and intangible assets – increases from PLN 3 500 to PLN 10 000. The new value applies to all fixed assets and intangible assets handed over for use after 1 January 2018 (it is acceptable for these assets to have been purchased in the previous year or constructed in previous years);

How to take care of the financial aspect of starting a business in Poland?

Starting a business was never so easy and with the passage of time, it is getting tougher & tougher. There are major decision-making to deal with the start of a business and it is important that all the operations are managed in an organized manner. Starting a small business is a bit different from a smaller one, but the dimension of challenges remains the same. Only the magnitude differs under varied circumstances. Business financial consulting is an important part that coincides with the requirements of the business and the operations. A successful business starts with a business idea that works for the people within the market.

Are you looking to start a business in Poland? There are different factors that need to be addressed and the business need to take into account several things that will be useful in choosing the business that will be good for you. Financial consulting is important for private equity and venture capital companies, as well as for small and large enterprises, regardless of their line of business. There are enterprises and organizations which provides the best assistance to start the business in Poland, thus saving costs and minimizing the Customer’s workload and risk.

It is important to register the company first and there are different works that need to be followed alongside registration. Fill-out the form that needs to be defined as the type of business activity. The scope service provided by business consulting firms includes purchase and appraisal of enterprises, the location of risks, financial due diligence, cost optimization and business plan development.


What is the need financial consulting to start a business?

The financial planning services will help the processing of corporate goals and it also helps to solve complexities of the financial products. Thus, it becomes easy to set up the goals and draw plans for achieving those goals within a limited time. The business consulting firm can be the best therapy to make your business a super success. A financial planner helps their client take full benefits of the tax reliefs provided by the Government. They handle various aspects linking to the business operations and will reduce the unnecessary tax flow.

Here is the list of financial service assistance that you might need while starting business in Poland –

  • External Services – Outsourcing
  • Outsourcing Account Services
  • Outsourcing Financial Management
  • Outsourcing Bank Payment Execution
  • Outsourcing Tax Advisory Services
  • Outsourcing of Financial Planning and Reporting
  • Outsourcing Audit and Control Services

Choosing a business idea and implementing all the operational activities is not all an easy task. A proper support of well equipped and skilled professionals is required for the treatment of the financial problems. It is important to know the factors can help you take the first step toward starting your own business and take the right steps for a successful business proposition. Choosing a business idea will be so much easier if you know that you can commit to making it work to the best of your abilities.

What to expect from a business Consultant

Managing a business is a real hard task. You’re strapped for time, budget and resources. Taking the right decision can make your business a boom else spending your money and resources in the wrong direction can put your business on the verge. Here comes the role of a business consultant who can redirect your company in the right direction. Some personalities and sites have abused, the term but still one cannot deny the services and the benefits of tapping the services of a business consultant. While hiring a consulting firm it may not seem appropriate investment, but it’s actually worth choosing.

Consider a case you have hired a marketing manager to boost the conversions. The problem arises when the new marketer starts, he/she needs to spend some more time familiarizing the business and campaigns. In fact, a business consultant has a complete idea of such things. He/she can fulfill the targets within less time. In Poland, the business consultants are high in demand. Most of the companies seek for consulting services to get the best result in less span of time.

Top reasons why your business requires business consulting:

  • You need a quick business plan

Whether you are developing a business strategy or creating a cohesive marketing plan, a prerequisite planning is an important factor for your business.

  • You need to hire consultant who is aware of business operation

The fastest way to increase profit is by hiring someone who actually knows what they’re doing. Hiring an employee who claims that they can do the job efficiently but actually they don’t. In such case, you expense more money rather you should have hired a business consultant.

  • Look for right company

Often companies end up hiring consulting service that doesn’t have a rich knowledge instead, look for service who have ample years of experience and proven track records.

  • You need someone who performs fresh perspective

Business consulting who perform different yet new scope as per the business requirement is more likely to suitable for your business. Applying the same tactics in every problem doesn’t sound to be worthy move

  • Complete insight into data

Data is everything. However, obtaining the right yet effective data is a challenging task. Make sure the business consulting service is trustworthy else it may cost you high in turn.

  • You need to cost cut if company not performing well

It is a very crucial step towards company overall performance and growth. Many times the company undergo severely loses, you need to take right yet effective measures to safeguard the company’s standing.

A business consulting company can help tweak your business goals. Business consulting is operated in different domains like outsourcing, accounting services, financial planning, audit and control services, etc. If you’re not able to find the right company for your company, search the internet, In Poland, there are large numbers of such companies offering excellent services to safeguard companies growth.

Things to look for from business consulting company

With the advent of internet best thing of the 20th century, almost everyone knows who is termed to be a consultant. Consulting is a broad term in itself there is large numbers of business consulting defined. If you check out some sites that offer services there are a lot of business consultant you will find for different businesses like a consultant for accounting, SEO, start-up, networking, etc. Some people may have abused the term but one cannot deny the fact it is very useful and highly beneficial for emerging companies.

Business consulting can help re-direct your business and help you take your business to new heights. They simply find the blind spots your company lacking and draft your business strategies to improve the business direction. In case you’re losing most of your market, business consulting can redraw the areas of improvement and after complete examining, they will draft you the formula to follow in order to stay in action. Some of the services cost basic rate while extensive service rate goes higher.

The foremost thing about good business consulting I that they understand your business and based on several layers of auditing provides you the complete overview of the company and lay down the necessary actions required. Now how to realize if one is right consulting for your business? To summarize the business ethics of your company the top business consulting company takes sufficient time to analyze your business agenda and perform the critical operation to give you the best possible recommendation. They use parameters like profit-making, loss incurs, employee salary, individual employee performance, total revenue, net worth, etc.

Once they collect all essential resources, they perform SWOT analysis of the business. Based on calculations, this will measure out the strengths, weaknesses, opportunities, and threats to your business. After checking facts and figures the final conclusion comes. Many time business owners only reply upon the micro level of audit yet macro level is also an important factor and needs to be accomplished. Smaller emerging companies often get the challenge in getting financial service like accounting services, tax advisory services, financial planning, and reporting, etc. If you’re looking for a good financial planner who makes benefit from Tax reliefs. They simply reduce the tax burden and unnecessary cash outflow and Thereby, uplifting the company’s profit and overall revenue.

Choose the business consulting company who shows frequent interaction and listen to your needs. This is a very necessary step in picking the consultant you want. IF the problem of you sounds to be big, the consultant will interact with the important member and sort out your problem efficiently. Being a business owner you should know that proper risk measures should be accomplished before watching your business go into misery. Every type of business requires some sort of consultancy for their company’s welfare. You are the sole owner of your company, don’t steer it in the wrong direction unless you are not sure of the business things.

Best Accounting Service for Your Business to Touch the Unbelievable Growth

It is worth noting that successful company incorporation does not ensure smooth functioning of your business in Lublin, Poland. Law and order of the country are rigorously stringent. No one can escape from its severe penalties if the compliance issues have not been followed in a perfect manner. There are few mandatory compliance requirements which must be fulfilled within the stipulated deadlines. Keeping the financial statements updated, filing XBRL report and GST filing, etc. are few of the obligatory requirements of accounting services of the business. If you are not very well versed in these aspects, it is better to outsource the activities to the professional accounting services Lublin, Poland.

This article will provide few tips on how to outsource the accounting & bookkeeping services Lublin, Poland. A right accounting service can help you build a better business from the very initial days. So it makes sense to follow the tips and get the best vendor for your business.

Define Your Accounting Requirements

To begin with, you just need to figure out the accounting requirements of your business. Try to know about your exact accounting requirements so that you can make the service provider understand the needs in detail. Since you are liable to fulfil all the statutory obligations vis a vis accounting, you ensure to cover all the essential aspects of Lublin, Poland accounting.

Maintaining the financial statements, preparing and filing XBRL report, GST filing (if your business is GST-registered), bookkeeping, accounting activities are the few of the things, your accounting services provider will likely to handle and perform on your behalf.

Consider a Thorough Discussion

There are hundreds of accounting firms offering outsourcing services to their clients spanning across the industries. You are advised to conduct in-depth research on the firms providing cheap accounting services that are high in quality. You may ask for recommendations from your friends, colleagues, and relatives who have used the same services in the jurisdiction. You may create a list and then contact each of the firms to get a clear idea of their services and working protocols.

Before hiring the service, you may engage in a free consulting session with the most of the firms. During the sessions, you can openly discuss your exact accounting requirements and determine whether they can resolve your needs or not. You may also gauge their level of expertise, experience and level professionalism the firm has.

Experience & Certifications of Professionals

Also, do not forget to check the experience level and certifications of the professionals of the firm you are going to hire. Make sure to know the industry experience the firm has. It must match to your industry or else there will be the learning curve involved in the process due to which you may lose your valuable time and money.

Cost of the Accounting Services Lublin, Poland

The cost of the accounting services Lublin, Poland will vary from firm to firm. While some of them may charge on an hourly basis, others may charge by the volume of the accounting transactions. It is notable that big companies will charge higher amount and small will keep the charges cheap and affordable. You must make a choice smartly depending on a budget of your business.

It is better to choose the cheap accounting services if your business is running on a tight budget. Nevertheless, make sure to strike a balance between the cost and quality of the service. The firm like SBS Consulting is known for its cost-effectiveness and high quality of service.

Along with these factors, also ensure to consider the reputation and reliability of the firm you are going to hire for your accounting services Lublin, Poland. If you take all these points into account, you are likely to have a smooth experience of outsourcing accounting & bookkeeping services Lublin, Poland.

Is the bookkeeping service is necessary for you?

Bookkeeping is one of the biggest problems for all businesses regardless the business size, In Poland bookkeeping is highly practiced among the businesses. When an individual starts a business, he is determined to save hefty amount on other sorts of expenditure but bookkeeping consumes a whole lot of money. In case the company is new, it would certainly difficult to manage huge records. To cope up with such intricate scenario, companies are now hiring bookkeeping service to avoid any shortcoming in the business.

The business world is full of challenges and you are new to the market. Imagine what you will actually do to fight with the demanding market. Since it is no cakewalk to prevails such difficult competition and survive. To make most of it, every businessman takes dig to cost cut unessential things and relatively perform better.

Benefits of hiring a bookkeeper:

  1. The first objective of any business is to make the most profit from the work they are doing. But the problem arises who will manage all the bookkeeping activities like profit sharing, etc. To minimize such problems, companies hire bookkeeping services to reveal the profit earned. Professional bookkeepers have expertise in bookkeeping and manage the work very effectively. One should not perform wrong entry; it can land the company in jeopardy. Not even a minor mistake is acceptable in bookkeeping since it may cause serious problems.
  2. In some companies, people think it is better to train one of their employees in bookkeeping rather than hiring a professional; this move can cost even more and put your business at risk. A professional bookkeeper has the better understanding of record management; it’s advisable to choose one for your business.
  3. A bookkeeper can reduce a lot of stress from you; activities like data backup, updating bookkeeping software, insurance, due dates, etc are delegated to bookkeeper.
  4. Budgeting helps your business move in right and upward direction. If you have well formulated, it can help you save expenditure and make more profit. Once the bookkeeper familiar with your business objectives he will even provide the valuable recommendation.
  5. All reputed bookkeeper provides keeps and maintain data record. They also provide the complete overview of financing, marketing, IT and risk mitigation advice. Such collective result signifies the quality of the bookkeeper.
  6. A professional bookkeeper can get you out of the rid of the wrong invoice, GST, and incorrect coding, etc.

It is quite clear that hiring a bookkeeper can help in wide prospect. It not only reduces the chances of business loss but also provide convenience to give the boost to your company. It is not a good business where men dread numbers and put you at risk. Make use of the specialized bookkeeper to make most of your business. Drop the risk factors which causing your business collapse.  But don’t forget to hire the best bookkeeper professional. In Poland the frequency of bookkeeper is high so choose the right one, after all, it is about your business future.