Taxes and Accounting in a Limited Liability Company (sp. z o.o.)

The company is a taxpayer of corporate income tax (CIT). The tax is paid by the sp. z o.o. on the income earned in a given tax year.

Read more about corporate income tax (CIT). ( link)

Additionally, the company’s shareholders pay tax (19%) on dividends and other income from shares in profits of legal entities (e.g., income from share redemption). The primary category of income from participation in the profits of a limited liability company is the cash payment (dividend).

The limited liability company is a VAT taxpayer and must maintain full accounting records.

At the end of each financial year, the sp. z o.o. prepares financial statements. These financial statements may be subject to audit by a certified auditor. Audits are required for financial statements of limited liability companies that continued operations and met at least two of the following conditions in the preceding financial year:

Average annual employment, converted to full-time equivalents, was at least 50 persons.

The balance sheet total at the end of the financial year was at least the equivalent of 2,500,000 euros in Polish currency.

Net revenues from sales of goods and products and financial operations for the financial year amounted to at least the equivalent of 5,000,000 euros in Polish currency.

If you need to establish a company, contact us:

Phone: +48 22 290 11 22

Email: biuro@mencel.com.pl

Our company is authorized to establish companies as this is a regulated activity. We provide services in the field of activities for companies or trusts, in accordance with the provisions of the Act of March 6, 2018 – Entrepreneurs’ Law. Our experts are ready to assist you at every step of the process of establishing a limited liability company.

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