International taxation

Although Personal Income Tax (PIT) in Poland may not put much strain on domestic enterprises, for those companies which operate internationally, taxation becomes a little more complicated. It is not the calculation of revenue for the previous year that causes most problems for the companies but determining what type of taxation they are subject to depending on where they operate. Not only does it keep some entrepreneurs awake at night but it may also discourage them from expanding to foreign markets.

Taxation abroad – facts and myths

Calculating tax for companies which operate on several markets requires a comprehensive approach. Both the knowledge of the Polish tax laws and rules for international income tax calculation are vital. It is also essential to determine the right tax residence of the enterprise, that is the place of residence for tax purposes, which is based on entrepreneur's domicile and the type of business activity they conduct. Having determined these matters, the entrepreneur can decide on what type of taxation they are subject to. It is also important to acquaint oneself with the double taxation laws in the countries in which one operates, so as to avoid paying taxes in two or more countries. When in doubt, an experienced accountant with the expert knowledge of international tax laws can always lend a helping hand with the calculation of revenue and tax reliefs, or the analysis of payments in accordance with the international tax law.