Tax compliance – tax competence

by Maciej Woźnica

19 April 2021 

Frequent changes in law are one of the main reasons why companies decide to outsource their tax accounting and tax reporting. Comprehensive tax compliance services offered by Rödl & Partner are addressed not only to Polish enterprises but also to foreign entities which are planning to operate or have already been operating in Poland.

Tax risk management

No proper response to frequent and often inconsistent changes in tax law may result not only in additional financial burdens jeopardising company’s competitiveness on the market but also even in (fiscal) criminal liability of managers. Rödl & Partner experts offer their support in identifying potential risk areas which may require the development of solutions to eliminate or minimise them.

Optimisation of the costs of tax reporting – what are the benefits?

Rödl & Partner offers more than just tax risk management in the locations where it has its offices. Our experts are also involved in optimising tax burdens. This tax compliance service, is available both to small local business and to international corporations. The main advantage of tax reporting optimisation is savings. They can reach even up to hundreds of thousands zloty per year, depending on the business size.

What else is offered as part of tax compliance?

Depending on client needs, tax compliance services may also include calculating due taxes, monitoring their payment deadlines and handling the payments as well as preparing data to be used for calculation of deferred tax.

For whom are tax compliance services?

Tax compliance services are addressed in the first place to large enterprises that may face problems related to turnover of employees of in-house financial departments, including in particular accounting and controlling departments. Shortage of staff combined with complicated and frequently changing laws may have tax-related consequences. By using tax compliance services, tax issues are handled by specialists, which allows businesses to use their internal resources for operating activities.

What types of taxes are covered by tax compliance?

Depending on demand, tax compliance may cover all taxes related to running a business, as well as other government levies. Rödl & Partner offers its support in key taxes (CIT and VAT) payable by virtually all enterprises, as well as in areas specific to individual industry sectors.

Corporate Income Tax (CIT)

Based on accounting data and provided source documents Rödl & Partner experts may calculate CIT by calculating the profit(loss), as well as tax payable. Alternatively, our specialists may check the payments made by the client company itself or review the expenses in terms of their tax-deductibility.

Value Added Tax (VAT)

Tax compliance services related to VAT include compiling the reporting documents required by law (Standard Audit Files for Tax – SAF-Ts, VAT-UE recapitulative statements, other detailed documents), keeping the necessary tax records (in particular sales or purchase records) and providing support in obtaining refunds of tax or tax overpayments.

Withholding tax (WHT)

When it comes to transactions made between Polish enterprises and foreign entities, which are taxable in Poland with the so-called withholding tax (WHT), Rödl & Partner offers its support in monitoring the transactions in terms of such obligations, in obtaining certificates of tax residence, calculating output tax and preparing tax returns and tax reports required by tax authorities.

Other taxes and government levies

Depending on the type of business activity and the structure of assets owned by the business, other tax burdens and government levies may be payable, too. This applies in particular to: real estate tax (RET), excise duty, other local taxes and government levies (e.g. those following from environmental protection law).

International tax compliance

Companies pursuing business activity abroad must take into account, among others, double taxation. International tax compliance services consist in, among others, drafting tax analyses and reviews and eliminating double taxation. With the support of our experts, the company may considerably reduce tax burdens and, consequently, effectively compete with other market players.