Market news from 4biz2.biz (first half of 2019)
New income tax for companies (CIT 9%)
On January 1, 2019, a preferential tax rate of 9% entered into force (we apply it only in relation to income earned since the mentioned date). This rate should be applied by taxpayers to settle advances in 2019 and to prepare the settlement for 2019, which should be submitted in the next year. The rate applies if the income in a given tax year does not exceed EUR 1.2 million. The entity must also have the status of a small taxpayer.
An increase in Polish excise tax on alcohol
On April 18, a government proposal was made to raise the excise duty on the majority of alcohol and tobacco products that would enter into force starting with 2020. The increase would be 3%. This is to ensure additional income for the state budget of 1.1 billion PLN. The increase is not to be subject to cider and perry. This is due to the fact that the Polish authorities want to support the development of two selected industries.
UniCredit withdraws from the WSE
In May 2019, UniCredit decided to withdraw from the Polish stock exchange. Such action was already anticipated from 2017, when the Italians sold Pekao shares ceasing to be the shareholder of the then second largest bank in Poland. Current valuation of UniCredit amounts to 110 billion PLN – for comparison, Polish companies listed on the WSE are worth about 570 billion PLN, and foreign 80 billion PLN. Nevertheless, the turnover of Italian bank papers remains negligible, and the current situation will not have a positive effect.
The increase in Polish GDP
At present, Poland is one of the leaders of economic growth among the European Union countries. According to Central Statistical Office, Gross Domestic Product (GDP) in the first quarter of 2019 increased by 4.6% against 4.9% growth in the last quarter of 2018. Compared to other EU countries in this respect, the Polish economy looks very well taking third place alongside Romania and Hungary.
New ecological fee
Most likely, already in 2020, Polish producers who launch plastic packaging, especially bottles, will have to pay for their collection and subsequent recycling. The current price does not allow for an economic collection system and hence many of these raw materials are not recycled. The new fee is intended to raise the producers’ responsibility to bear the costs of collection and recycling. Obtaining even 0.20 PLN from the packaging, industry could provide almost PLN 2 billion, which would cover part of the costs of collection and management of plastic waste.
A series of articles on studies in Poland for foreigners
In the month of June, there appeared on 4biz2.biz a series of articles addressed to people from abroad seeking opportunities in Poland to undertake higher education. Our portal supports and enables foreigners to find interesting universities.
A series of articles about starting a business in Eastern European countries
For the last two months we have added to our section with analytical articles we added content on how to set up a business in such countries as the Czech Republic, Slovakia, Ukraine, Lithuania, Latvia, Estonia and Belarus. You can find in them statements, costs, necessary documents and the pros and cons of starting a company in a given country.
Unemployment – the most recent data and detailed report under this link (currently unemployment is 5.9%): Unemployment registered – first quarter of 2019
Ranking of loans for companies – https://www.ebroker.pl/kredyty_dla_firm
Reference rate – no change, it is still 1.5%
With kind regards, team of GC “Agroliga”.