Companies are bound to draw up a balance sheet, a profit and loss account and notes. The accounts must be published in Polish, the unit of currency being the Zloty. Companies subject to audit must also prepare a statement of cash flows and a statement of changes in equity. Limited liability companies and companies listed on the Stock Exchange must also prepare a management report. reports must be filled annually. Companies listed on the Warsaw Stock Exchange must prepare financial reports observing the constraints of form defined in the decree of the Council of Ministers of 22 December 1998.
Listed companies must prepare quarterly accounts (in a simplified form) and six-monthly accounts as well as consolidated accounts. The accounts must be sent to the Registration Court or to the Committee for Stock Exchange Operations (Komisja Gielda Papierów WartoÅ›ciowych) for listed companies. Audited companies must also send their accounts to the commercial gazette (Monitor Polski B). In addition, the European Directive of 19 July 2002 obliges all European companies listed on the Stock Exchange to draw up their annual consolidated accounts according to IAS standards from the 2005 tax year on.
Professional Accountancy Bodies
KIBR, The National Chamber of Statutory Auditors AAP, The association of accountants in Poland
Poland apply a reduced VAT rate of 8% on certain categories of goods and services, including water supplies, pharmaceutical products, medical equipment for disabled persons, children’s car seats, books, newspapers, hotel accommodation… The country applies a reduced VAT rate of 5% on foodstuffs, agricultural inputs…
Polish companies are taxed on their national and worldwide income, while foreign companies (nonresident) are taxed only on their income earned in Poland. For additional information, consult krakow-info.
Capital Gains Taxation
Long term capital gains are incorporated into the company's profits and are therefore subject to corporate tax.
In Poland tax payers benefit from various deductions: - Various donations (to science, charities, etc.) are deductible up to 10%, or even 15% in some cases. - Deductions on purchasing and building real estate.
Special Expatriate Tax Regime
Expatriates and natives pay the same taxes in Poland. For information on expatriate taxing, access Taxes in Poland on Krakow's Website.
Double Taxation Treaties
Countries With Whom a Double Taxation Treaty Have Been Signed
power in Poland is independent, but the Courts are well-known for their
long administrative delays in dealing with cases.
Equal Treatment of Nationals and Foreigners
Poland is a constitutional State. Foreign nationals can expect to obtain impartial proceedings in legal matters.
The Language of Justice
Polish is the language of justice used.
Recourse to an Interpreter
It is possible to obtain an interpreter.
Sources of the Law and Legal Similarities
The main source of the country's law is the Constitution of 1997. The legal system is a mix of Continental civil law (Napoleonic) and remnants of communist legal theory; changes are being brought in rapidly with the process of democratization. Poland accepts the obligatory jurisdiction of the ICJ (International Court of Justice) but with reservations. As Poland is a member of the European Union, its national law must abide by the conditions of the country's legislation.
Integration in the International Standards Network
has developed a widespread system of standards and certifications of
its own, not always harmonized with international standards. It is a
member of different international standards organizations: ISO, IEC, CEN, CENELEC, ETSI.
It also cooperates with other international organizations for the
harmonization of standards and certifications, such as UN/ECE (United
Nations Economic Commission for Europe), ASTM (American Society for
Testing and Materials), WTO/TBT (WTO Agreement on Technical Barriers to
Classification of Standards
Concerning marketing, in Poland, products subject to the field of application of New Approach European directives: since 1 May 2004 they must carry the "CE" mark. For further information about CE marking, please consult the information on EC marking.