News from Poland


Banks in Poland.

Banks are institutions that officially mediate in financial transactions. The Bank’s main task is broadly understood money service. The Bank is a legal person established in accordance with the provisions of laws, acting on the basis of permits authorizing to perform banking activities that incur risky funds entrusted under any repayable title.


The entrepreneur will be able to include more expenses in the costs of the Polish company.

The tax office gives a hand to small entrepreneurs, thanks to which they will pay a lower tax. Officials agree to deduct such expenses that were previously the subject of disputes like fees for learning a foreign language, additional studies or bills related to running a business in their own apartment.

Polish entrepreneurs must improve their qualifications, even the fluency in English language is necessary, without this it is difficult for any success in business. There are more and more foreign clients in every business branch and to be competetive the entrepreneurs need to expand their knowledge and skills to be able to guarantee them the best quality of service.


How to end your business in Poland?

If we come to the conclusion that there is no point in continuing to do business, then liquidation proceedings should be carried out. The shareholders’ meeting takes place at the notary public, where the decision is made to dissolve the company and appoint its liquidator.
The liquidator of the company may be someone from the company’s former management board or any person indicated by the management board. It is safer to employ people with knowledge of the liquidation proceedings.

The conditions for bankruptcy law are already crucial in the liquidation process. It may turn out that after opening the liquidation process of the company, it turns out that we have at least two creditors and overdue receivables exceed three months, then we have 30 days to file for bankruptcy, despite the fact that the company is in liquidation. Finally, after 6 months from the date of announcement of the company’s liquidation in the Court and Economic Monitor, the meeting of shareholders may decide to remove the company from the National Court Register.


Is Poland an attractive country for foreigners?

Among the citizens of countries that recognize Poland as an attractive direction of immigration are Ukrainians, Russians and Belarusians, as well as citizens of Asian countries (Vietnamese, Chinese, Hindus) and citizens of the countries of the South Caucasus. According to the estimates of the Government Population Council, due to the low fertility rate of women, Poland will need about 5 million immigrants, only to maintain the current economic level. In this context, immigration from Ukraine is particularly important. The presence of Ukrainian employees on the Polish labor market is more and more necessary, and the creation of facilities for them is much needed, as they are also becoming desirable on other Western markets.
In recent years, a number of facilities for foreigners have been introduced in Poland. On the other hand, Polish society is still perceived (quite stereotypically) as reluctant to foreigners, and the provisions of Polish law, despite being updated, still constitute a fairly significant barrier to access to the labor market and education.

According to experts of the Association of Entrepreneurs and Employers, this may result in an outflow of Ukrainian workers from Poland of around half a million, which may result in a 1.6 per cent GDP decline (1/3 of the growth rate). Visa liberalization to the EU appears to be Germany’s first step in acquiring qualified employees, but much has been said about simplified procedures for recognizing the qualifications of people outside the EU, support in learning German or integration activities.


Is Poland concerned by the migration crisis?

The migration crisis is one of the most pressing problems in the European Union. The number of immigrants has been increasing in recent years, and the issue of immigration has become a political issue in EU countries. Despite the increase in immigration in recent years, Poland still belongs to emigration countries, not immigration countries. This means that Poland is classified as a country not directly affected by the migration crisis, which has an impact on the attitude of the Polish government towards the crisis and how to solve it.

Among the motives for immigration to Poland, the economic factor and the prospect of stable employment and earnings still prevail, and family ties and cultural closeness facilitate the decision on immigration to Poland. According to information from the Ministry of Family, Labor and Social Policy, about 1.5 million foreigners work in Poland, although this data may be underestimated due to the fact that some foreigners stay in Poland illegally and take up illegal work.


Talks about the economy at the G20 summit in Osaka.

In the opinion of some leaders, including representatives of the European Union, trade wars are slowing down global economic growth. The most dangerous effects are seen in the customs war between the US and China, about which the leaders of these countries are to talk about in private on Saturday. On the occasion of the Osaka Summit, Donald Trump met with Vladimir Putin. The presidents agreed to continue negotiations on arms control. Putin invited Trump to visit Moscow next year and participate in the parade celebrating the anniversary of the end of World War II. During bilateral meetings, the issue of tensions in the Persian Gulf was also raised. President Trump appealed to German Chancellor Angela Merkel for help in putting pressure on Iran. The plenary session was dominated by economic issues. China, India and Russia have once again expressed their opposition to economic protectionism and unilateral sanctions. The first day of the summit ended with a gala dinner with G20 leaders. Commercial disputes in the center of attention of the participants of the G20 summit in Osaka. There will be direct talks between President Donald Trump and the Chinese and Indian leaders devoted to additional duties. G20 leaders believe that trade conflicts pose a serious risk to the global economy.


Inflation devouring investment profits

Considering the current deposit interest rate and inflation at the level of 2.4%, it turns out that the vast majority of deposits bring us losses in real terms. To beat inflation, interest would have to be as much as 3 percent. The rate must be higher than inflation because interest is reduced by tax. It is also worth adding that it will be harder and harder to get real profits, as forecasts say that at the end of the year prices may rise at a rate exceeding 3 percent. To beat this level, deposit interest would have to be above 3.7 percent. There are no such offers on the market, except for short-term promotions for new customers. It should be added, however, that keeping money on an interest-free account or in cash, the real value of savings will fall even faster than those placed even on a weak deposit.


Why banks reduce interest rates on deposits.

The rate reductions are due to the fact that this strategy brings double benefits to banks. First of all, paying lower interest costs less. In addition, some people discouraged by low interest rates give up deposits and simply keep savings on an interest-free bill. This means for banks a free source of financing. In addition, the advantage of deposits over loans granted is increasing in the banking sector. The value of the former is already 13 percent higher than loans. For comparison, in 2011 the situation was opposite – the value of loans was up by 14 percent higher than deposits. Banks are therefore less and less motivated to pay us high interest rates. They are not able to earn part of our savings because they give too little credit.


We started to withdraw money from bank deposits again.

In April 2018, the wave of withdrawals from bank deposits ended, which reduced their balance by as much as PLN 35 billion. It seems that after more than a year of peace another one begins, because we have been observing payments again for three months. They led to the fact that the importance of investments fell to the lowest level in history. We keep only 1/3 of savings on them. At the end of May, Poles had PLN 260 billion in bank deposits, which is almost PLN 3 billion less than in February. In total, we have PLN 773 billion in banks, so the share of deposits is only 33 percent. and is the lowest ever. First of all, low interest rates discourage them from deposits. This year it is constantly falling. In December 2018, it was on average 1.83 percent, and in April this year only 1.56 percent.


Central Invoice Register – a new tool for controlling entrepreneurs

On 1.12.2010, the European Commission issued a document called the “Green Paper” on the future of VAT. It set out recommendations that were necessary for simpler and more efficient settlement of value added tax. In addition, one of the tools aimed at minimizing tax fraud was to be a system monitoring all invoices in combination with settlements made by entrepreneurs for VAT. The Central Invoice Register will be such a tool in Poland. It is a tool that allows checking the correctness of issuing invoices, analyzing and detecting carousels and eliminating, among others, the so-called empty invoices, i.e. documenting fictitious transactions. In addition, CRF is to streamline and accelerate tax audits.