Aktualności

New task for accounting Poland concerning singling out a separate source of income as capital profits

Based on tules accouning Poland the capital profits shall include:
1) revenues from the share in legal persons’ profits, subject to art. 12 (1) (4b), constituting revenues that have actually been obtained from this share, including:
a) dividends, balance sheet surpluses in cooperatives and income obtained by the participants of investment funds or collective investment institutions from these funds or institutions, if the articles of association provide for the payment of such income without repurchasing units or investment certificates,
b) revenues from the redemption of shares (stock) or from reduction of their value,
c) revenues that are the result of a partner leaving a company referred to in art. 1 (3), occurring in a manner that is different than set forth in p. b,
d) revenues from decreasing a partner’s capital share in a company referred to in art. 1 (3), occurring in a manner that is different than set forth in p. b,
e) the value of property obtained in connection with the liquidation of a legal person or a company referred to in art. 1 (3),
f) the equivalent of profit obtained by a legal person and a company referred to in art. 1 (3), allocated for increasing its share capital, the equivalent of balance sheet surplus of a cooperative allocated for increasing equity fund, and the equivalent of amounts allocated to this equity (fund) from other capitals (funds) of such a legal person or a company,
g) additional payments received in case of merging or dividing companies by the partners of the acquired company, merged or divided companies,
h) revenues of a partner in a divided company, if property that is acquired as a result of the division, and when the division is carried out through partial division – property acquired as a result of the division or property remaining in a company, does not constitute an organised part of a company,
i) payment referred to in art. 12 (4d),
j) the value of non-distributed profits in a company, and the value of profit transferred to capital other than the share capital in a converted company – in case of converting a company into a company that is not a legal person, provided that revenue is specified as of the day of conversion,
k) interest on capital share, paid to a partner by a company referred to in art. 1 (3), Journal of Laws – 16 – Item 2175
l) interest on a borrowing granted to a legal person or a company, referred to in art. 1 (3), if the payment of interest on such a borrowing or its amount depends on whether this legal person or a company earns a profit, or on the amount of such profit (participation borrowing),
m) revenues obtained as a result of conversions, mergers or divisions of entities, including:
1) revenues of a legal person or company referred to in art. 1 (3), acquiring, as a result of merger or division, property or a part of property of another legal person or a company, revenues of a partner to a company under merger or division, revenues of a company under division;
2) revenues from making non-monetary contribution to a legal person or a company referred to in 1 (3);
3) revenues from a share (stock) in a legal person or a company referred to in art. 1 (3), other than those specified in p. 1 and 2, including:
a) revenues from the disposal of shares (stock), including disposal made in order to redeem them,
b) revenues obtained as a result of share exchange;
4) revenues from the disposal of the general rights and duties in a company that is not a legal person;
5) revenues from the disposal of receivables previously purchased by a taxpayer, and receivables resulting from revenues included in capital gains;
6) revenues:
a) from property rights referred to in art. 16b (1) (4–7), with the exclusion of revenues from licences connected directly to obtaining revenues not included in capital gains,
b) from securities and derivative financial instruments, excluding derivative financial instruments used for securing revenues or costs, not included in capital gains,
c) on account of participation in investment funds or collective investment institutions,
d) from rental, lease or another agreement of a similar type regarding the rights referred to in p. a–c,
e) from the disposal of rights referred to in p. a–c.

Singling out a new source of revenue creates an obligation to allocate incurred costs to individual sources of income, including general costs for accounting outsourcing Poland partners.  Based on rules accouning Poland the capital profits shall include:. Such an obligation also applies to costs incurred before 1 January 2018, and settled as tax costs or revenues in 2018.
Losses generated in one source of income cannot be offset by revenues from another source.

If a taxpayer earns a profit in both sources of income, the total income from both sources of income is the taxation base. Tax rates remain unchanged.

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new immovable property tax for accounting service Poland

The tax will apply to buildings whose historical cost exceeds  PLN 10.000.000

informs accounting service Poland, in a form of:
– trade and service building classified in the Classification of Fixed Assets as a shopping centre, department store, independent store and boutique, or other trade and service building,
– office building classified in the Classification of Fixed Assets as an office building,
with the exception of: buildings in respect of which depreciation allowances are no longer made due to the suspension of business activity, or the cessation of business activity for which those buildings were used, as well as office buildings used exclusively or mainly for a taxpayer’s own needs.

Taxation base is revenue corresponding to the historical cost of fixed assets determined as of the first day of each month, resulting from the records kept, decreased by the amount of PLN 10 000 000,

The amount of tax: 0.035% of the taxation base for each month.
Payment method and date: the obligation to independently calculate and pay the tax for each month, not later than 20th day of the following month;
The amount of paid tax is subject to deduction from the tax advance paid according to the general rules (on obtained revenues in the Corporate Income Tax); in case of quarterly advances, deducted tax is the tax calculated for the months of a given quarter; taxpayers are allowed not to pay tax on buildings they own, if it is lower than corporate income tax advances for a given month; the amount of paid tax on owned buildings that is not deducted during a fiscal year is subject to deduction in an annual tax return, from tax calculated according to the general rules for a fiscal year.

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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.

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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.

 

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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).

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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.

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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);
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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.

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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.

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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.

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