FAQ

Once a year, the company is obliged to submit to the Registrar a tax annual report. For joint stock companies, the annual report must be audited. If there is no annual report submitted, the Court may fine the company management. The annual report is submitted to:

Tax claims before March 31 of next year, in electronic form

To the registrar in the KRS Court until June 30 of the following year in electronic form via the S24 system.

Progrean accountantss Holding compiles an annual report for its customers and explains how to submit them.

We accept an employment contract from the company on the basis of which we pay salaries. We help to make an employment contract. In Poland, there are 3 main types of employment contracts: an employment contract, a work contract and a one-time work contract. In case of leave or sick leave, we charge a fee and inform the social insurance fund.

The tax burden on wages in Poland in is devided between employer and worker:

Progress Holding provides full payroll accounting services.

Each legal entity must periodically send:

to the Tax Service:

• CIT and PIT – advance payments are made up to 20 days for the previous month
• a single control package (a list of all s \ f) up to 25 days for the previous month
• VAT-7 VAT report – every month up to 25 days
• CIT-8 and financial statements – until March 31 of each year
• all changes regarding the address of the activity, the bank account must be submitted immediately in the form of NIP-8

to the Social Insurance Fund:

• report on s / n RMUA – until the 15th day of the previous month

to the Statistical Office:

• company data report

Annual report:

• Register until June 30th

Business support in Poland – what service you may expect?

Usually when you look for business support in Poland you find offers of the accounting service. Scopes of the offers vary from simplest accounting to complex accounting service, incorporation, bank loans, business evaluation, etc. Running a business in Poland you may encounter different problems to solve, therefore its better you choose counterparty, who can provide service in many fields. Price for such a service may not be necessary higher than in small accounting companies. Better you select two or three offers of accounting companies, compare and choose what suits you the best. Always ask price quotation, and check how quick they react on your inquiry. Mind that internet commentaries are not necessarily genuine. You may ask contact to the customer call and check credentials.

For example Progress Holding provides complex service, like:

• Accounting, preparation of the annual financial statements
• Handling matters in tax office, social security authorities, Court Register – KRS, authorities for labor control
• Incorporation, id registration number, electronic signature
• Virtual office,
• Providing work permits for foreigners
• Assistance in banking services, opening bank account, loans, leasing and other credit products
• Business case Business plans, starting and enlarging customer base
• Private investors, found rising
• Progress Holding runs marketplace https://4biz2.biz/en and can assist with offers,  ad, banners All in  3 languages

How to choose reliable accountant / bookkeeper in Poland

First- check experience, if  counterparty is on the market more than  10-14 year it means it went through crisis upside downs on the market.

Second – check whether  bookkeepers have  Ministry of Finance licenses. It give you more comfort that bookkeepers who passed exams know the law.

Third- how complex is their service, more complex more possibility that they may more support from them if case turns up.

Fourth – Ask references, if they service   larger companies than you may have comfort.

Fifth – How quick they react for your inquiries?

Sixth – check the price what exactly their service covers? Does the price covers:  preparation of annual financial statement, do they handle inquiries  form  tax, social security, labor authorities?  At the beginning of your activity some  applications have to be placed with tax office, namely VAT-R- becoming VAT payer. NIP-8 notification to tax office your address, bookkeeper  bank accounts, UPL – POA for delivery electronic declarations to the tax office PEL – POA for electronic  declaration to be delivered to the social security related to payrolls.

From September 1, 2019, a register of VAT taxpayer information (the so-called “White List of VAT Payers”) appeared in Poland, which is a tool created to help companies efficiently and quickly check their potential contractors within business opportunities. All payments over  15,000 PLN for Polish counterparties should be made only for counterparties who are on the White List, otherwise the company cannot include such a payment in expenses.

The register of taxpayers makes it possible to check whether this contractor is an active VAT taxpayer, whether it was denied registration, deregistered, or VAT registration was restored. It will also allow you to find out the legal basis of the above decisions, confirm the number of the bank account to which money transfers will be made to the contractor (the accounts indicated in the NIP or CEIDG identification / update notification).

In addition to bank accounts, the “white list of VAT payers” provides the following information:

• Name or company names;
• REGON number
• PESEL number •

To National Court Register Number:

• Address of registered office – in the case of a legal entity that is not an individual
• Permanent Mission Address or Registration Address
• Names and surnames of members of the body authorized to represent the company
• Name and surname or company (name) of the partner and his tax identification number or PESEL
• Dates of registration, refusal of registration or deregistration and restoration of registration as a VAT payer together with legal grounds.

The registry is available at https://www.podatki.gov.pl/wykaz-podatnikow-vat-wyszukiwarka

Audit fee is determined by auditors’ time spent on your engagement so the better you are prepared the cheaper the project will cost!

Audit plan should be prepared prior to the kick off. Apart from thefinal deadline it should contain other important targets. Would you like to have weekly meetings to monitor the audit status? Do you expect preliminary results after 3 weeks? When should you deliver required documents and when does an auditor want to set meetings with your accountants? List of important dates should be specified along with the engagement letter or even added as an appendix.

Auditor sends you a list of required documents with a deadline to deliver (PBC list, short from Prepared by Client). Apart from obvious requirements like a general ledger, they may ask for documents that may seem unrelated to audit or too sensitive to hand on (like employee salaries). Instead of avoiding the requests it is better to contact your auditor right away and discuss those PBC items. Any delay caused by you (like not delivering employee salary list) can be considered as a failure to meet the deadline and you may be additionally charged for auditors’ overtime.

Auditors are boned by non-disclosure agreements so conveying any sensitive data is safe. But it is possible to negotiate a limited access (auditors only view the information, they can copy it but you do not send the documents) or ask for only the engagement partner or manager to have access to it. Always erase personal data (employee name and surname, date of birth, etc.) before sending documents.

Sometimes it may seem that you are asked for documents unrelated to the engagement. But to swiftly pass the audit suppress your surprise and just deliver what the auditor is asking for. Auditorsare like detectives, they search for more than meets the eye. Not until a large amount of information is analyzed can they identify what is missing and where are mistakes. Those additional documents shed additional light to the company’s financial situation and give a better overview.

Often auditor asks to code required documents in accordance with the PBC list, so they can find a specific document without opening every file. Deliver every requested document. For example, an auditor asks for A1) list of suppliers; B2) payables per each supplier; C3) aging table of suppliers’ payables. Companies usually send one complex file C3 that includes aging payables per each supplier (contains all three requested information). It is better to send all 3 documents A1, B2 and C3 (can be copies of the same document). Or one document but coded „A1, B2, C3 Aging payables per each supplier”. Completeness of delivered documents is monitored by PBC codes. Even though file C3 contains all requested information, lack of files A1 and B2 can be viewed as failure to deliver all PBC items.

Remember that Excel is auditors’ best friend. Deliver all numeric data in Excel format. If auditor must format data themselves which is time consuming, they can charge us extra for delays. If your general ledger and trial balance cannot be exported to Excel, let the auditor know in the Letter of Inquiry. Therefore, they can include extra time in their timeline assessment and you will avoid extra charges.

Finally, it is crucial to timely response to auditors’ queries, most often by email. Auditors prefer responses in writing because your emailsare considered a better audit evidence then minutes from a call. Delayed answers can prolong the engagement because your response might be imperative to continue audit work. That is why answer auditors’ questions as soon as possible.

Benefits from audit

Audit objective is to assure financial statement’s readers that all data presented are reliable, relevant and fairly represent company’s financial position. Unqualified opinion increases the company’s credibility, rises chances to obtain financing from banks, assures suppliers about liquidity and investors about profitability. Your company is more credible to the market.

Auditors look under the hood of your business. It may be irritating but that is just the nature of audit. No point in being annoyed, see new opportunities that audit offers. Auditors talk to your employees and evaluate company’s processes, like how journal entries are made, how receivables are aged or how inventories are monitored. Thanks to this you can check whether your employees actually perform their tasks in accordance with company guidelines.

Moreover, auditors have years of experience and know well your industry. Ask them for tips to improve your processes and increase effectiveness. Maybe there is a better IT system to manage inventory? Maybe your company has a control in place that is time consuming, minimally effective and there is a better solution?Advices like this are not the audit goal so have a friendly relationship with your auditor to receive such tips.

Of course the main goal of an audit is to examine the financial statement. Do you correctly apply the Accounting Act (or IFRS), do you reliably present all information? Fairly prepared financial statement is in your best interest – based on in you create a business plan and development the strategy. A good strategy starts with correctly identifying the factual state. Because many of us are emotionally attached to the company,the judgement can be sometimes clouded. Luckily an auditor comes to the rescue!

First- check experience, if  counterparty is on the market more than  10-14 year it means it went through crisis upside downs on the market.

Second – check whether  bookkeepers have  Ministry of Finance licenses. It give you more comfort that bookkeepers who passed exams know the law.

Third- how complex is their service, more complex more possibility that they may more support from them if case turns up.

Fourth – Ask references, if they service   larger companies than you may have comfort.

Fifth – How quick they react for your inquiries?

Sixth – check the price what exactly their service covers? Does the price covers:  preparation of annual financial statement, do they handle inquiries  form  tax, social security, labor authorities?  At the beginning of your activity some  applications have to be placed with tax office, namely VAT-R- becoming VAT payer. NIP-8 notification to tax office your address, bookkeeper  bank accounts, UPL – POA for delivery electronic declarations to the tax office PEL – POA for electronic  declaration to be delivered to the social security related to payrolls.

In principal running a business in Poland is more or less the same as in other EU countries. There are particularities but you can quickly get acquainted. Before you start incorporation activity you have to determine what are your goals to achieve. Surely you have your business plan. So, please consde the following  plan for incorporation in Poland:

First – what legal form of the company is more appropriately to your business? What share capital you want to allocate? Who are the directors? What types of businesses you have to insert in the Articles of Association?

Second – find your counterparty, who will be mandated to incorporate your company, check several offers. In the  bids  evaluate experience, references, competences, timing, complexity of services, virtual office service, price. The cost of incorporation is a one off cost therefore price is not a priority. Thirdly – in Poland the simplest way to set up a company is by using  government S24 e-platform. Therefore you have to have ID number – PESEL,  e-signature – ePUAP,  afterwards 5 days and you have a company.

Fourthly – choose your accountant. In this respect read recommendation here LINK. Mind that some  applications have to be placed with tax office, namely VAT-R- becoming VAT payer. NIP-8 notification to tax office your address, bookkeeper  bank accounts, UPL – POA for delivery electronic declarations to the tax office PEL – POA for electronic  declaration to be delivered to the social security for payrolls.

Work permi service is exclusively  rendered to the companies as our customer. We do not provide this service for individuals. So individual can not be offered work permit service from us, unless  he is acting on behalf of the company.

In Poland there is a constant shortage of labor force. Out of 38.4 million inhabitants, only 16.5 million work. According to Eurostat, which analyze  employment between the ages of 20 and 64, the EU average was 73.1%. For Poland, is 72.2%. while for Sweden is 82.4%.

In the coming years, Polish employers will be looking for the foreign employees from abroad. Thus, the subject of work permits for foreigners in Poland is valid for many years.

The most common way how to get a work permit for a foreigner is ‘Declaration to employ  a foreigner’.

This type of work permit can be described as a simplified procedure for obtaining a work permit. This procedure can be used for citizens of : Armenia, Belarus, Georgia, Moldova and Ukraine.

The standard procedure concerns obtaining a work permit for a type A or type B foreigner.

Type A work permits apply to all employees other than board members

Type B work permits apply to board members

In Poland, the largest number of economic migrants are citizens of Ukraine, Belarus, China and Vietnam (data from January 2020). Most often, work permits are applied for by foreigners from neighboring countries or from countries where there is an excess of labor force who cannot find work in their home country. Employing foreigners in Poland is by far from cities with over 500,000. residents (21%).

Simplified procedure: Statement on entrusting work to a foreigner

1. What citizens can apply for a work permit: this procedure applies to citizens of Armenia, Belarus, Georgia, Moldova,  Ukraine
2. Authorizes the foreigner to work for 24 months. After the 24-month period, you can re-submit the statement for the next period.
3. Waiting time for decisions – usually 14-21 days, in individual cases up to 30 days
4. Tax – 100PLN, updated in 2023.

Standard procedure: Type A or type B work permit for a foreigner to work in Poland

1. What citizens can apply for a work permit: this procedure applies to citizens of all countries.
2. Type A permit – for a foreigner working in Poland, pursuant to a contract with an entity whose registered office, place of residence or branch, plant or other form of organized activity is located in Poland.
   Type B work permit – for board members.
   Type A work permit for employees, is issued for a period of max. 3 years. Type B permit is issued for a period of 3 or 5 years.
3. Waiting time for a decision: 2-3 months
4. Tax – PLN 100.

An important issue is the qualifications for the profession of specialist employees, the so-called professional qualifications: operators of construction machinery, road machines, electricians, welders, etc. Numerous training centers offer courses for welders, operators and other specialists. Course cost from  1000 to 2000 PLN. The courses last from 1 to several weeks. The training prepares you to pass the exam and obtain permissions. On the example of the welder, permits are issued for a period of 2 years.

Documents that will be needed:

An apostiled notary copy of the passport
• An apostiled notary copy of the documents proving work qualifications and education (copies confirmed by notary and consulate)
• Contract of employment
• POA for Progress Holding Sp z o oemployee – we prepare the draft and your signature is confirmed by notary and apostilled

Foreigners with qualifications have more chances to obtain the work permit, the demand for professionals with several years of experience is constantly growing. The greatest demand is in construction sector. Demand for foreigners is for simple jobs but also for jobs for foreigners – professionals such as bricklayer, stonemason, welder, steel structure fitter, carpenter, roofer, etc. According to experts, approximately 22% of foreign employees work in construction. The most frequently chosen professions include production workers, seamstresses, room service, cashiers and cashiers in supermarkets or mechanics, transport industry: truck driver and mechanic and gastronomy: cook, waiter, cashier. There is a great demand for IT employees and call center employees. Often foreigners work below their qualifications. The main reason here is ignorance of the Polish language.

In 2020, the minimum wage for foreigners and Poles is 2600 PLN gross, which means 1920 PLN net, and the minimum hourly rate is 17 PLN gross. That is what every foreigner should earn, according to the law.

Foreigners working in managerial and IT positions receive the best salaries. Foreign IT employees are able to achieve salaries of PLN 5,000 or more. In the industry related to the production of cars – an average of PLN 2,500 net, i.e. PLN 3,421.90 gross.