Błażej Sarzalski

attorney-at-law

Attorney, registered in the Regional Bar in Katowice, CEO at Sarzalski Consulting Sp. z o.o., an expert in a field of formation of commercial companies, corporate law, promissory notes and litigation.
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What is PESEL numer?

PESEL (Polish: Powszechny Elektroniczny System Ewidencji Ludności, Universal Electronic System for Registration of the Population) is the national identification number in Poland. It consists of 11 digits that are unique for every registered person.

Why do I need PESEL for Polish company management?

Since end of 2019 every Polish company needs to register itself in a new registry called Central Registry for Benefitiary Owners. If your company fails to meet this obligation it may be fined. In order to make registry entry you will be required to apply by electronic means using e-signature. The most popular e-signature in Poland: EPUAP (electronic trusted profile) is free of charge, but in order to get it, you will need PESEL number.

Electronic profile EPUAP will be also useful to sign financial statements and make amendments in National Court Registry.

How to get PESEL?

If you are foreigner living in Poland, you can register your residence – in such a situation, you will automatically obtain a PESEL Number. If you cannot register your residence, and any agency requires a PESEL Number from you – submit an application by yourself or by using attorney services.

The procedure is described on a Gov site.

With our help you will be able to do it remotely.

Just contact me.

While many countries are rising taxes due to coronavirus crisis there are still some countries thinking with a longer perspective. Poland included. In order to attract worldwide capital and investors the government will implement, so called, ‘Estonian’ corporate income tax from the beginning of 2021.

What does it mean for a potential investor?

There will be no corporate income tax on retained and reinvested profits. The new system of corporate ernings taxation will be based on Estonian solutions, which are, to say the least, truly unique.

In Estonia the moment of corporate taxation is shifted from the moment of earning the profits to the moment of their distribution. This means that earning profit in itself does not trigger income tax liability. The tax obligation arises only when earnings are distributed to shareholders (and in other situations treated as distribution of profits, for example when company lends money to its shareholders or make payments to blacklisted offshore territories).

The new corporate income tax system will apply to approx. 97% of companies, as the project assumes the new rules will apply to all limited liability companies, joint-stock companies and joint-stock partherships with annual turnover below PLN 50 million (approx. EUR 11 million).

Yet, this is another reason to consider Poland as a place for your worldwide business, especially when you compare it to other European tax regimes. What may be also of some importance -Poland, unlike Estonia or Cyprus does not bear a burden of being associated with capital of Russian origin, it has implemented strict AML laws and is considered a stable economy, even in times of Covid-19 crisis.

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Want to learn more about company formation in Poland? Just contact me.

If you happen to be in Greece, near Athens in the first days of May and you want to discuss the possibility of investing in Poland, opening a company in Poland or business immigration to Poland then please let me know. We can meet and discuss possible cooperation.

 

9% CIT rate in Poland from the beginning of 2019

Although the 19% corporate income tax is the basic corporate income tax rate in Poland, the reduced rate of 9% is available for taxpayers with income in the current tax year lower than PLN equivalent of EUR 1 200 000.

It means that foreign enterpreneurs who are selling goods and services with low deductible cost ratio can benefit from changing its structure to Polish limited liability company.

The reduced rate does not apply to revenue from capital gains – dividends and other revenues actually derived from participation in profits of legal persons and a limited joint stock person, the value of property received as a result of the liquidation of a legal entity or a limited joint stock person, revenues from the sale of shares of companies, revenues from the sale of receivables previously acquired by the taxpayer, revenues from property rights such as copyrights or related property rights, licenses, trademarks and know-how, revenue from securities, derivative financial instruments.

In such case 19% rate applies.

Taxation of dividends from Polish companies

Dividends disbursed by Polish limited companies are subject to withholding tax at the 19% rate and the tax is collected by the company making the disbursement). Exemptions and deductions shall apply on condition that legal grounds exist, whether resulting from an agreement for the avoidance of double taxation or a different ratified international treaty to which the Republic of Poland is party.

The parent-subsidiary directive exempting dividends from tax applies, when entity receiving income (revenue) from dividends, as well as other revenues qualified as dividends, is a company which is subject to taxation on the entire of its income in the Republic of Poland or in a European Union member state other than the Republic of Poland, or the Swiss Confederation or in another state of the European Economic Area, regardless of where it is earned. The condition of the exemption is continuous, two-year holding period by the company receiving the dividends required 10% (in the case of Swiss – 25%) of shares in the capital of the company paying the charge. The prerequisite is also met, if this period has elapsed after the date of receiving the dividend.

 

EU residence for UK citizens

Błażej Sarzalski04 January 2019Komentarze (2)

EU residence for UK citizens

Apparently, we reached a point of no return and Brexit is inevitable option. It means that after hard Brexit the free movement of British citizens within European Union will be limited to 90 days in 180 days period. It also means that you no longer can have 3 months holiday in Greece and then move freely to another EU country, for example to French seaside. You will have to wait another 90 days. Your movement will be under supervision and you will be obliged to register in electronic visitor system for Schengen area prior to your arrival.

What options do you have as UK citizen to move freely within Schengen zone?

The only option is to acquire temporary residence permit in one of EU countries. Is Poland an option for UK citizen? Yes, it is. The entry criteria for obtaining temporary residence card via company formation in Poland will not be difficult to meet by many British citizens. It is enough to have a company which will have annual profit of about 10.000 GBP to meet the criteria. With a residence card you will have the right to stay in Poland for longer period than 90 days and be able to travel freely to other EU countries for 90 days within 180 day period. It means that your will enjoy a right of free movement within European Union for the whole year, since there are no border controls whatsoever.

Why should I choose Poland as my place of temporary residence in EU?

You will love Poland.

Medieval architecture of Krakow, vividness of Warsaw, multicultural environment of Wroclaw or Gdansk, very good road infrastructure, Carpathia mountains, Baltic Sea and friendly people. Everything will seem less expensive but still of decent quality. You may invest in really cheap real estate.

How to open a company in Poland and apply for temporary residence permit?

Just contact me and I will be happy to answer all your questions.