Polski Ład (Polish Deal). Taxation of the general partner of a limited joint-stock partnership (S.K.A.) – basic aspects. Warsaw, January 24, 2022
If you are looking for a remedy or solution to Polski Ład , you may wish to consider a limited joint-stock partnership (S.K.A.).
A limited joint-stock partnership can be a very effective form of running a business post the introduction of the Polish Deal.
The advantages to the general partner in relation to the taxation of a limited joint-stock partnership are presented below:
– income tax in the amount of approximately 17.3%, if S.K.A. is a “small taxpayer” (for other companies, the taxation of the general partner will be 19%);
– profit paid to the general partner is not subject to the obligation to pay social security contributions;
– the profit paid to the general partner is not subject to the obligation to pay the health insurance premium (it is a derivative of the lack of obligation to pay social security contributions);
– the profit paid to the general partner is not subject to taxation, the so-called solidarity levy (4%);
– the possible payment of the management fee to the general partner (resulting directly from the partnership agreement).
In order to take advantage of the deduction of income tax (CIT) paid by S.K.A. from the general partner’s tax (PIT), the profit of such a company should be paid within five years (counting from the end of the tax year following the year in which the company’s profit was achieved).
For further information about this topic, please contact Bernard.
Tel: 608 093 541