Systems of corporate taxation

Setting up our own company we have to decide what system of taxation will be most beneficial for us
and whether the bookkeeping will be managed by our own or by an accounting company.

VSL-System Warsaw Virtual Office also provides the accounting for companies.

The basic forms of taxation according to Polish law are:

  • Tax card - it is designed primarily for small businesses engaged in trading activities and catering
    or services. To use this form of taxation, company registration must be submitted prior to the tax office upon request.
  • Income/Spending Book - it is the most popular form of taxation, because as a basis for calculating income tax we take only the company's income. We can choose between the magnitude of the tax and the flat tax.
  • Lump-sum on registered revenue - in this form of taxation the amount of tax is calculated basically on the company's income. There are five percentage rates in Poland: 3 %, 5,5 %, 8,5 %, 17 %
    and 20 %, which are used depending on the nature of the business. There are many activities excluded from the lump-sum payment. If you run one of them you can not have a lump-sum.
  • Commercial books ( full accounting ) - this is the most complicated form of taxation, but also gives the fullest picture of the current financial condition of the company.