Tax in Poland - tricks to avoid PIT?

enderThreads: 13 Posts: 528 Joined: Nov 7, 09 ♂	Edited by: Moderator Jul 9, 11, 17:53 #31
Harry: Sorry child but I pay 42% flat rate tax Sorry? Where do you live? There is no such rate in Poland. Maximum is 32%. And I used to pay 42% couple years back. But go on tell us how good you are with tax. (I admit PIT5 smooth move) careful

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Jul 9, 11, 18:28 #32

ender:

Useless beggar. That means your personal income is lower then 85000PLN 30,893USD 19,352GBP (-18%)
didn't you say you could couple nurses salaries?

Sigh, your knowledge of taxation really is poor.

It means his profit is less than 85,000PLN. Given that you can write off limitless amounts of things in order to reduce your profit, it's not much of a surprise that he only pays the lower rate.

Never heard of "deductions" as a concept in company tax law?

enderThreads: 13 Posts: 528 Joined: Nov 7, 09 ♂	Jul 9, 11, 18:31 #33
delphiandomine: Never heard of "deductions" as a concept in company tax law? Listen BABE he clearly states PIT and Personal Income Tax has nothing to do with company Tax. Learn about PIT5

delphiandomineThreads: 42 Posts: 9,954 Joined: Nov 25, 08 ♂ [Suspended]	Jul 9, 11, 19:55 #34
ender: Listen BABE he clearly states PIT and Personal Income Tax has nothing to do with company Tax. Learn about PIT5 In English, "company" can mean self employment, or it can mean a form of "spółka". Therefore, it is correct to talk about "company taxation" when talking about deductions for self employment purposes. Seriously, stop digging.

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Edited by: ender Jul 9, 11, 20:03 #35

delphiandomine:

In English, "company" can mean self employment, or it can mean a form of "spółka".

In UK self employed pays income tax. Why not? And VAT he doesn't pay VAT
A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service,
shortly his customers pay VAT
I should stop anyway, I messed up in heads lets hope your tax advisers would get fed up of you all.

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Edited by: Harry Jul 9, 11, 20:04 #36

ender:

There is no such rate in Poland. Maximum is 32%.

Wrong again. I pay 23% VAT and then 19% PIT. So 42% of everything I earn goes to the tax man. Plus 850zl in ZUS.

delphiandomine:

It means his profit is less than 85,000PLN. Given that you can write off limitless amounts of things in order to reduce your profit, it's not much of a surprise that he only pays the lower rate.

I don't actually write stuff off. I'm told that I could write off 50% of my flat administration fees and 50% of gas and electricity bills etc etc etc. But I very simply do not work from home and so refuse to cheat by claiming I do. As for net profit, add a digit, correctly add a digit.

ender:

his customers pay VAT

No, I pay the VAT. I pay it every quarter from my bank account. Please don't tell those of us who do actually work how it is to work.

ender:

Listen BABE he clearly states PIT and Personal Income Tax has nothing to do with company Tax. Learn about PIT5

Thank you, expert, but działaność gospodarcze do not pay CIT: we pay PIT (and VAT). But hey, I've posted the address of my tax office, go ahead and report me: you are legally obliged to do so.

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Edited by: delphiandomine Jul 9, 11, 20:10 #37

Harry:

I'm told that I could write off 50% of my flat administration fees and 50% of gas and electricity bills etc etc etc. But I very simply do not work from home and so refuse to cheat by claiming I do.

Yeah, normal practice is to write off one room in the place where you live for business purposes. Then you can write off the cost of holidays, and you can even claim the insane 22zl/day subsidence allowance when "travelling". Quite what 22zl/day buys you in most of Europe, I'm not sure.

One thing that is a pain in Poland is deducting non-EU invoices - the tax office can be an utter bastard about this.

ender:

And VAT he doesn't pay VAT

Uh - take the 23% that he charges his clients, minus the VAT he's already paid for services/goods, and you're left with what he has to pay to the VAT man. It might be a tax on the final consumer, but as he has to pay VAT to the taxman, to all practical purposes, he pays VAT.

enderThreads: 13 Posts: 528 Joined: Nov 7, 09 ♂	Edited by: Moderator Jul 9, 11, 20:11 #38
Harry: I pay the VAT yea when you buy pencils but not for students other way you can deduct it from your tax.

delphiandomineThreads: 42 Posts: 9,954 Joined: Nov 25, 08 ♂ [Suspended]	Jul 9, 11, 20:13 #39
ender: yea when you buy pencils but not for students other way you can deduct it from your tax. If he was teaching, he wouldn't be paying VAT. Teaching/training is mostly exempt for VAT purposes. I say mostly, because there's been some rather strange rulings recently - the whole thing is a matter of some debate.

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Jul 9, 11, 20:19 #40

ender:

yea when you buy pencils but not for students other way you can deduct it from your tax.

Fortunately my office is very well stocked with pencils (well, the modern self-propelling version anyway), so I have no need to buy any for my office use. And I have no students, so I can't buy for them. I did recently buy a pencil for personal use (Rotring multi-pen actually) but my accountant told me that if I tried to put the full cost in as a business expense (i.e. $185 plus import duty), the tax man would be most displeased. All I can say is thank God that some of my business activity is zero rated for VAT.

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Jul 11, 11, 19:59 #41

ender:

Don't stop yourself. Go for it. I've got too much to say about tax for foreign companies and it can end up badly, for me mainly. I don't care Harry, Delphiandomine and JonnyM don't pay tax in Poland it's peanuts anyway.

Actuall I've paid more tax in Poland than you ever will - and never had any problems with the various deductions to make on the PIT. CIT is of course a different thing, which you really ought to learn about.

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